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RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of August 12, 2020 No. 706

About approval of the Method of calculation of concessionary payments

According to part four of article 34 of the Law of Ukraine "About concessions" the Cabinet of Ministers of Ukraine decides:

1. Approve the Method of calculation of concessionary payments which is applied.

2. Recognize invalid resolutions of the Cabinet of Ministers of Ukraine according to the list which is attached.

Prime Minister of Ukraine

D. Shmygal

Approved by the Resolution of the Cabinet of Ministers of Ukraine of August 12, 2020 No. 706

Method of calculation of concessionary payments

1. The procedure, the size and conditions of introduction of concessionary payments is essential condition of the concession treaty.

2. The concessionary payment is determined by results of carrying out concessionary tender (including competitive dialogue) or by results of direct negotiations with the lessee of state-owned property according to article 21 of the Law of Ukraine "About concessions" (further - direct negotiations).

By results of carrying out efficiency analysis of implementation of public-private partnership according to the conclusion about feasibility of decision making about implementation of public-private partnership in the form of concession by the concessor the method of calculation of concessionary payment, most profitable to the state, taking into account the sphere of economic activity in which concessionary activities, substantial risks of the project and their distribution between the parties will be performed is chosen; market factors, in particular, dependences of the project on demand; financial sales terms of the project which is performed on the terms of concession, its duration.

The concessionary payment can be determined:

as share (as a percentage) the net income gained by the concessionary from implementation of concessionary activities;

as share (as a percentage) costs of the provided subject to the concession determined by results of its market assessment;

as fixed payment which can depend on amounts of goods, the works or services provided by the concessionary;

in other form corresponding to the legislation.

The concessionary payment can be determined by combination of different approaches to its calculation.

3. In case of creation (new construction) by the concessionary of subject to concession the concessionary payment cannot be determined as share (as a percentage) of the cost of the created (constructed) subject to the concession determined by results of its market assessment.

In case of creation (new construction) by the concessionary of subject to concession the concessionary payment is (in the presence) established according to the paragraph to the seventh part four of article 34 of the Law of Ukraine "About concessions" (further - the Law).

4. The concessionary payment by results of concessionary tender or direct negotiations is calculated:

1) as share (as a percentage) the net income gained by the concessionary from implementation of concessionary activities for the following formula:

KP = ChD x SKP,

where KP - the amount of concessionary payment, hryvnias;

ChD - net income for the corresponding accounting period (month/quarter/half a year/year) from implementation of concessionary activities (sales of products (goods, works, services) which is performed in accordance with the terms of the concession treaty, hryvnias;

SKP - rate of concessionary payment, percent;

2) as share (as a percentage) costs of the provided subject to the concession determined by results of its market assessment. For such calculation the estimative amount of concessionary payment is determined by the following formula:

KPO = (BP x SKP) / n,

where KPO - the estimative amount of concessionary payment, hryvnias;

BP - market value of the provided subject to concession by results of its independent assessment for date of assessment of subject to the concession which is carried out according to the procedure, determined by the legislation on property assessment, property rights and professional estimative activity (without the value added tax), hryvnias;

SKP - rate of concessionary payment, percent;

n - frequency of payment of concessionary payment (it is determined in the concession treaty (month (12), quarter (4), half a year (2), year (1).

The estimative amount of concessionary payment is subject to obligatory indexation on consumer price index.

For the purpose of determination in the concession treaty of concessionary payment for the first accounting period the amount of concessionary payment for base period of calculation for the following formula is determined:

BEDDING SET = KPO x _stsb,

where the BEDDING SET - the amount of concessionary payment for base period of calculation, hryvnias;

KPO - the estimative amount of concessionary payment, hryvnias;

_stsb - consumer price index from date of assessment of the provided subject to concession prior to the beginning of the first accounting period for which the concessionary payment is made.

The amount of concessionary payment for the first period of calculation (month, quarter, half a year, year) is determined by adjustment of the amount of concessionary payment for base period of calculation on consumer price index from the first following base period of calculation to the last number of the first period of calculation of concessionary payment.

The amount of concessionary payment for each subsequent period is determined by adjustment of the amount of concessionary payment for previous period on consumer price index for the corresponding accounting period.

In case of provision by the concessor during effective period of the concession treaty to the concessionary of new subjects to concession in accordance with the terms of such agreement the concessionary payment can increase according to the procedure, provided by the concession treaty.

In case of carrying out direct negotiations the amount of concessionary payment is determined taking into account requirements of the paragraph of third of part four of article 21 of the Law;

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