Intergovernmental Working Group in Odessa
18 September 2009
Intergovernmental Working Group Session in Odessa
The 11th meeting of the Intergovernmental Working Group for Adjustment and Control over Progress in Preparation and Implementation of Projects Related to Development of Populated Areas Housing Sector, which is consultative and advisory body at the Cabinet of Ministers of Ukraine, presided by O.Yu. Kucherenko, the Minister of Housing and Communal Services of Ukraine, and I.V. Zapatrina, the Deputy Minister, was held on 17-18 September, 2009 in Odessa.
In this event IBSER was represented by Iryna Shcherbyna, the IBSER Director General, who is an active member of the Intergovernmental Working Group (IWG). Membership of the Intergovernmental Working Group is approved by Resolution of the Cabinet of Ministers of Ukraine No. 865-з dated October 10, 2007 “Issues Reserved to the Working Group for Adjustment and Control Over Preparation and Implementation of Projects in the Populated Areas Housing and Utilities Sector”.
IBSER actively cooperates with the Ministry of Housing and Communal Services within the framework of implementation of the project named “Municipal Finance Strengthening Initiative” (MFSI/USAID), in particular, in the area of implementing new innovative financial mechanisms required to put in place strategies for development of municipal infrastructure at local level, which is one of the most important elements of MFSI project.
Top priority item of the agenda was discussion of conditions and perspectives for development of energy efficiency in the housing and communal services sector within the framework of the project named Cities Infrastructure Development implemented jointly with the International Bank for Reconstruction and Development.
O.Yu. Kucherenko, the Minister of Housing and Communal Services, thanked the International Bank for Reconstruction and Development for investment support to domestic municipal housing and communal structure as well as representatives of all international financial organizations and institutions for aid in development of energy efficiency projects in Ukraine.
О.Yu. Kucherenko and S. Mangi, Cities Infrastructure Development project manager from the World Bank, positively evaluated the progress in implementation of Cities Infrastructure Development joint project, in particular in terms of selection communal enterprises to the project “opened component”, where high competition level between Ukrainian cities was marked.
In the following speech the Minister put the emphasis on the fact that in connection with the world financial crisis the Government will abandon the practice of non-repayable donations to housing and communal enterprises, which from now have to count mainly on credit funds subject to open and transparent competition of the selection process for such lending.
Among more than 30 cities, which requested information concerning participation in the “open component” project, 22 cities submitted their business plans for total amount of USD 113.55 million. Among them 17 cities obtained positive expert opinion in terms of business plans evaluation for total amount of USD 92.33 million.
7 cities obtained positive opinions from the Ministry of Finance of Ukraine with total budget of USD 52.92 million, among them 6 cities were approved by the Expert Working Group and transferred to the World Bank for the agreement purpose. In particular: Odesa – USD 10.14 million, Chernigiv – USD 8 million, Cherkasy – USD 10.88 million, Kalush – USD 9.6 million, Kolomyia – USD 2.6 million and Krasnodon – USD 5.00 million.In the context of the abovementioned project O.Yu. Kucherenko, the Minister of Housing and Communal Services of Ukraine, signed at the meeting sub-loan agreements between the Ministry of Housing and Communal Services, Ministry of Finance and communal enterprises of City of Odesa and City of Kalush within the framework of the Cities Infrastructure Development. Similar agreements are to be signed with communal enterprises of City of Chernigiv and City of Kolomyia on September 22 in the premises of the Ministry of Housing and Communal Services.
During the meeting the Minister submitted to the management of the International Bank for Reconstruction and Development a proposal to increase funding of the “open component” of the Cities Infrastructure Development project by USD 200 million, and extension thereof to the heating supply area, household waste recycling and potable water and sewage water purification.
H. Kamill, Extraordinary and Plenipotentiary Deputy Ambassador of the Kingdom of Sweden in Ukraine, in his speech confirmed that his country is ready to provide grants in the context of the Cities Infrastructure Development project, which is to improve general reliability and financial stability of Ukrainian communal enterprises.
O.Yu. Kucherenko also reported to the meeting attendants the latest measures taken by the Government to support housing and communal sector of Ukraine, activities of the Ministry of Housing and Communal Services concerning creation of an independent professional body for tariff regulation, in particular development of a relevant draft law.
Concerning budgetary donations to cities the Minister noted that recently in view of positive processes of development of local authorities in Ukraine, its housing and communal infrastructure became too decentralized. He also specified that draft state budget provides for pumping up local budgets along with strengthening state management system. In this connection the Minister put emphasis on the fact that no project providing for a city funding from the state budget will be considered unless general city development plan, approved heating supply scheme and clear water supply program is available.
In return the representatives of the European Bank for Reconstruction and Development, IFC International Financial Corporation and GTZ German Technical Cooperation Company present at the IWG meeting informed the attendants of existing and perspective investment projects, criteria set for selection thereof and express their interest in consideration of new project offers.
The meeting was also attended by the managers of the Ministry of Housing and Communal Services, Ministry of Finance of Ukraine, Department for Municipal and Ecological Infrastructure of the European Bank for Reconstruction and Development, International Bank for Reconstruction and Development, Cities Infrastructure Development project, Deputy Ambassador of the Kingdom of Sweden in Ukraine, representatives of German Company for Technical Cooperation, Swedish International Development Agency SIDA, municipal managers and representatives of housing and utilities enterprises of Odesa, Illichivsk, Krasnodon, Chernigiv, Cherkasy, Ivano-Frankivsk, Drogobych, Kalush and Kolomyia etc.
During the event members of the Intergovernmental Working Group had also opportunity to become acquainted withy activities of communal enterprises of City of Odessa and Illichivsk, and evaluate possibility to attract foreign investments to housing and utilities sectors of those cities.
After the meeting, there was held a press conference for local mass media.
In return the representatives of the European Bank for Reconstruction and Development, IFC International Financial Corporation and GTZ German Technical Cooperation Company present at the IWG meeting informed the attendants of existing and perspective investment projects, criteria set for selection thereof and express their interest in consideration of new project offers.
The meeting was also attended by the managers of the Ministry of Housing and Communal Services, Ministry of Finance of Ukraine, Department for Municipal and Ecological Infrastructure of the European Bank for Reconstruction and Development, International Bank for Reconstruction and Development, Cities Infrastructure Development project, Deputy Ambassador of the Kingdom of Sweden in Ukraine, representatives of German Company for Technical Cooperation, Swedish International Development Agency SIDA, municipal managers and representatives of housing and utilities enterprises of Odesa, Illichivsk, Krasnodon, Chernigiv, Cherkasy, Ivano-Frankivsk, Drogobych, Kalush and Kolomyia etc.
During the event members of the Intergovernmental Working Group had also opportunity to become acquainted withy activities of communal enterprises of City of Odessa and Illichivsk, and evaluate possibility to attract foreign investments to housing and utilities sectors of those cities.
After the meeting, there was held a press conference for local mass media.
Information is prepared based on materials available at the official website of the Ministry of Housing and Communal Services of Ukraine.
Glyanec