Project description

Title: Competition and procurement system
Commissioned by: European Union
Country: Ukraine
Lead executing agency: Antimonopoly Committee of Ukraine (AMCU); Ministry of Economy of Ukraine
Overall term: 2009 to 2011

Context

Ukraine acceded to the World Trade Organisation (WTO) in 2008, during a period of great political uncertainty. Prior to its accession, the country had just implemented an impressive package of reforms, especially in the field of economic policy and legislation. Nevertheless, if Ukraine is to fulfil its international commitments, it still needs to carry out further reforms related to competition, state aid and public procurement.

Objective

Legislation and enforcement mechanisms have been established in Ukraine to address competition, state aid, subsidies and public procurement. These are compatible with PCA and the EU-Ukraine Action Plan. The market economy is strengthening as a result, with increased business activity, a better investment climate, economic growth and a higher standard of living.

Approach

The project provides important support for the ongoing economic reform processes in Ukraine. It is divided into three basic components of support which address the specific priority areas as set out in the overall objective:

• Improvement of the legislative framework and related enforcement mechanisms related to competition. Organisational support is provided to the Antimonopoly Committee of Ukraine (AMCU).
• Strengthening of the state aid system as an important prerequisite for competition in a market economy
• Reform and strengthening of the public procurement system – here, the main aim is to help the government ensure the final, promulgated version of its legislation complies with its international commitments, in particular Directives 2004/17/EC and 2004/18/EC, and the WTO’s Government Procurement Agreement.

In each of these areas, the measures taken by the project are intended to strengthen the relevant legal, political and institutional framework, including the provision of capacity building and training for the staff of the institutions involved. Strategy building and political integration are also central aspects of the project.

Results achieved so far

Progress is being made in all three project areas.

• Component 1 (competition): The legal, policy and institutional framework for competition in Ukraine has improved, with the AMCU being reinforced as a modern competition authority. The AMCU staff have received training and participated in study tours. Measures have been taken to involve all key stakeholders in the process of reform. The main areas in which improvements have been made are competition law, antitrust enforcement and competition advocacy measures.
• Component 2 (state aid): With the assistance of the project, an official working group has been formed to prepare Ukrainian state aid legislation and establish the basis for a national system of monitoring and controls that is compatible with EU standards. The group is also preparing the ground for an agreement on a new institution responsible for administrating that system. The project has carried out substantial awareness raising activities in this field around the country.
• Component 3 (public procurement): Public procurement legislation has been fundamentally improved and brought more closely into line with EU law, international standards and the best practices of EU Member States. The appeals functions under the public procurement law have been transferred to the AMCU, as recommended by the project. The project has also carried out substantial public awareness measures and education and training activities related to the new system.