LAW OF UKRAINE

of July 16, 1999 No. 997-XIV

About concessions

This Law determines concepts and the legal basis of regulation of the relations of concession of the state-owned and utility property, and also condition and procedure for its implementation for the purpose of increase in efficiency of use of the state-owned and utility property and ensuring needs of citizens of Ukraine for goods (works, services).

Section I. General provisions

Article 1. Determination of terms

For the purposes of this Law terms are used in the following value:

concession - provision for the purpose of satisfaction of public requirements with authorized body of the executive authority or local government body based on the concession treaty on paid and urgent basis to legal entity or physical person (the subject of business activity) of the right to creation (construction) and (or) management (operation) of subject to concession (urgent paid ownership), on condition of capture by the subject of business activity (concessionary) on obligations on creation (construction) and (or) management (operation) of subject to concession, property responsibility and possible entrepreneurial risk;

the agreement of concession (concession treaty) - the agreement according to which the authorized body of the executive authority or local government body (concessor) provides on paid and urgent basis to the subject to business activity (concessionary) the right to create (to construct) subject to concession or it is essential to improve it and (or) to exercise its control (operation) according to this Law for the purpose of satisfaction of public requirements;

the concessionary - the subject of business activity who according to this Law based on the agreement received concession. Several persons can be on the side of the concessionary;

the concessor - the executive body or relevant organ of local self-government authorized respectively by the Cabinet of Ministers of Ukraine or local government bodies on the conclusion of the concession treaty;

the applicant - physical person or legal entity (the subject of business activity), resident or the nonresident who submitted the application for participation in concessionary tender;

concessionary payments - the payment caused in the concession treaty, brought by the concessionary for the right of creation (construction) and (or) management (operation) of the objects provided in concession;

concessionary tender - the procedure established by this Law and other regulatory legal acts according to which certain applicant is recognized the winner concessionary tender.

Article 2. Principles of concessionary activities

The basic principles of the activities connected with provision and receipt of concession (further - concessionary activities), are:

legality of implementation of concessionary activities;

state regulation of concessionary activities and control of its implementation;

implementation of concessionary activities based on the concession treaty;

the choice of concessionaries mainly on competitive basis;

accounting of features of provision of object in concession in certain spheres of economic activity;

complex use of subject to concession;

mutual benefit of the parties in the concession treaty;

state guarantees of capital investments of the concessionary;

paid use of subject to concession;

providing legitimate rights and consumer interests of goods (works, services), provided by the concessionary;

stability of conditions of concession treaties;

distribution of risks between the parties of the concession treaty;

participation of the state, local government bodies in partial financing of the subjects to concession having social value.

Article 3. Objects which can be provided in concession

1. Objects which can be provided in concession are determined according to this Law.

2. In concession objects the rights of the state-owned or utility property used for implementation of activities in the following spheres of economic activity can be granted (except types of business activity which according to the legislation can be performed by exclusively state companies and associations):

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