February 2017 – At the beginning of 2017, the Ukrainian parliament approved a set of infrastructure-related drafts, including the law on a new e-tickets system for public transport.
The e-tickets system
Ukraine’s parliament adopted changes to legislation regarding the introduction of automatic fare collection on local public transport, which is expected to attract around USD 100 million in investment, decrease by 25 per cent the expenditure of public transport enterprises on fare collection and bolster the efficiency and transparency of public transport.
According to the amendments, local municipalities will be entitled to decide to introduce automatic fare collection systems.
In addition to Kyiv, the e-tickets system will soon be introduced in Lviv. On 17 November 2016, the EBRD extended a EUR 10 million loan to the municipal transport operator Lvivavtodor for the procurement, installation and management of the necessary hardware, software and e-tickets.
The municipality of Vinnytsia expects to attract a EUR 8 million loan from EBRD. Out of 125 companies from 20 countries participating in a tender for the procurement of e-tickets for Vinnytsia’s public transport, 14 companies have been already shortlisted.
Similar measures are announced to take place in Dnipro – for underground transport in 2017; for electric transport by 2018; and for motor transport by 2019.
Other municipal authorities are expected to launch similar initiatives.
Merchant Shipping Code
Parliament approved in the first reading Bill No. 2712 on changes to the Merchant Shipping Code of Ukraine to develop inland navigation, including the transportation of cargo, and to reduce transportation by road.
The 1995 Merchant Shipping Code contains a truly archaic provision that allows only vessels belonging to legal entities fully owned by residents of Ukraine to navigate under the Ukrainian flag. In addition, the coastal navigation of vessels under a foreign flag is possible only with a permit issued by the Infrastructure Ministry of Ukraine. As a result, in contrast to 1991, the number of vessels under the Ukrainian flag has dramatically decreased from 375 vessels to a mere 46.
Bill No. 2712 removes these restrictions, which have been a barrier to foreign investors and Ukrainian vessel-owners interested in engaging foreign partners.
Other amendments
Parliament also approved in the first reading:
- Bill No. 4046а on the State Program on the safety of civil aviation – to bring the 2003 edition of the Program in line with ICAO, EU, ECAC and EUROCONTROL standards;
- Bill No. 4647 on changes to the Law of Ukraine on automobile roads – to clarify the status and peculiarities of the operation of roads used for defence purposes; and
- Bill No. 4644 on the harmonization of Ukrainian laws and by-laws with EU legislation on the transportation of dangerous goods.
We are following these drafts and will update you on further developments.
For further information please contact Olena Kuchynska, Managing Associate, at , or Mariana Antonovych, Associate, at .