About National Рrojects
Printer-friendly versionThe growth of foreign direct investment by 1 percent results in GDP growth by 0.4 percent. This is an evaluation of the IMF. Therefore we expect that after 4years of our work the GDP of Ukraine will rise by at least 4.7% solely by means of the implementation of national development projects.
The "National projects" is a solid practical basis for implementation of economic reforms in the country. The Projects have a limited implementation time frame (4 years at most), amount of required work and do not depend on the form of ownership.
Why is there such a confidence in the result? Because our strategy of the projects implementation isn’t constructed on the budget. Over 80% of funds for "National projects", even taking into account their social component, will be involved from the market.
Reforms Formula
Taking into account international experience of "National development projects" we have reached the optimal formula, i.e. the implementation of strategic investment projects determined by market in the framework of the key national priorities, set by the President of Ukraine.
First of all, these projects are realistic, moreover, they have a clear implementation period; and, to conclude, they have clear indicators of possible impact on the economy of Ukraine.
Most of the "national projects" are rooted in the new model of public-private partnership.
The basic principles of work on the "National projects" are priority of investment funds over the budget, project management in public administration, guaranteed results and personal responsibility, as well as partnership with the world's best companies.
We should mention individually another key principle – Morality, in other words - Anticorruption. This is a new standard in our system of public administration. For this purpose, internal “Integrity Act” will be elaborated, which ensures 100% of publicity for all key decisions, transparent selection of the heads of project teams and obligatory tender procedures with relevant previous publications.
Through implementation of the "National projects" we plan to attract a significant amount of investment (even in times of economic crisis) and to introduce the innovative model of public administration. The main goal of our work is realization of the “National projects” as a practical basis for the economic reforms in the country.
Priorities and Projects
What projects will gain the statues of national? The first list of the "national projects" was defined during the meeting of the Committee on Economic Reform on the 25th of August.
Within the framework of the National Priority “New Energy”, defined by the President of Ukraine, we implement two projects - "LNG-Terminal" – building of receiving terminal of 10 billion cubic of liquefied natural gas on the Black Sea coast of Ukraine - and the "Energy of Nature" - the construction of wind and solar power station.
"LNG - Terminal" is number one by order as well as by importance
The dependence on the monopoly of natural gas imports to Ukraine generates systemic economic problems as well as the political threats. For the first time in all years of independence this project will solve these problems and, therefore, will settle the key issue of national security.
In addition, the project takes into account the world tendencies - liquefied gas is become cheaper than pipe gas. Therefore, this project is our energy strategy, political will that wasn’t implemented by Ukraine during the entire period of its independence.
The national project "Energy of Nature" provides creation of a «clean» energy source - wind and sun with the planned amount in 2000 mega watt of capacity, which is analogous to the energy received from 2 billion cubic ofimported gas. This project will be implemented mainly in the Crimea and Zaporizzia.
I would like to emphasize that this project has great regional importance. Several areas in Ukraine with the potential of renewable energy sources - wind and solar - have a location that makes economically inefficient transportation of energy generated from traditional sources. Therefore, the development of this project, firstly, solves the problem of the economic efficiency of the electricity transportation, and, secondly, saves the environment, that makes the area attractive for development of tourist business.
In the framework of the National Priority "New Quality of Life" 6 projects will be implemented at once, indicating the special importance for the social problems of today's Ukraine. However, despite of its social component, implementation doesn’t involve budget funds, but even brings profit.
Within this priority we implement the project "Affordable Housing". These systemic social programs for building of affordable housing for experts who work in the sphere of state strategic priorities, as well as participants Program for Social Adaptation of the Crimean Tatar population. It is foreseen that the cost of such housing will vary within 3-4 thousand USD. per 1 square meter, which is much cheaper than market price.
Today affordable housing is the apartments that meet all specified criteria and requirements, but are cheaper due to applying economic technologies, the introduction of model of public private partnership and complete elimination of corruption component.
Social Program provides apartments for citizens through their selling on a reasonable price.
The second "National Project" under the priority "A new quality of life" is the program "Clean City", the construction of modern complex for recycling of solid waste.
In Ukraine one of the most critical municipal issues was and remains the problem of waste recycling. At present 770 Ukrainian dumps accumulated over 30 billion tons of industrial waste – what means per capita 700-800 tons of waste. City dumps are overfilled, their borders came close to residential areas, 80-90% of the polygons do not correspond to the basic requirements of environmental safety and these polygons are direct threat to human life!
Above all the "National Projects" include the construction in 10 cities of ultra-modern complexes as a pilot project. I will mention that the construction of waste recycling facilities will have a significant economic effect - it will make profitable business form recycling of solid waste - both by income from sales of refined products - metal, polymer granules, waste paper, glass, compost - and by saving resources of fresh raw materials.
Another project that will make life qualitatively better for Ukrainian people - is "Quality Water", a program providing the population with quality drinking water.
Today Ukrainians have the worst drinking water in Europe. Most of the diseases related to water quality, which reduces years of life. The project provides construction of 23,000 systems for cleaning of drinking water. Firstly, it is planned to equip kindergartens, schools and medical establishment. Due to this project European standards will be achieved in Ukraine following one of the main and basic human rights - the right for quality drinking water.
The next project "Open World" provides creation of a national information and communication network based on technology 4G, which will be used primarily for the purpose of school education.
Implementation of this project will serve as an example that Ukraine can be in the forefront of world innovations. Today only a small part of Europe covered by this technology, which allows to carry out electronic certification, voting, singular cadastral system, electronic tax administration, coordination of traffic system, rescue system (911) and so on. And the most important is that, this system radically will improve the quality of education in the country and ensure effective integration of the Ukrainian education into European educational system.
In the framework of the project 1.5 million schoolchildren will receive net books, Ukrainian educational software and Internet access.
The project significantly enhances the general competitiveness of Ukrainian society and provides the conditions for future technological and innovative breakthrough.
Another "national project" in the framework of the priority "A new quality of life" - "City of Future" - drafting of strategic development plan and municipal development projects;
The “National Project" provides implementation of the best European and world practices of city planning and city building, effective public discussion,wide involvement of the Kyiv population into city development management and involvement of local communities to the local government.Through implementation of the project in other cities we can radically modernize infrastructure, increase investment and tourism attractiveness of our Ukrainian cities.
On initiative of the leader of the new team of Kyiv City State Administration, Oleksandr Popov, the pilot project should be our capital.
This "national project" will stimulate the formation of the project approach to planning of regional development and implementation system of local projects.
Finally, the last project of this priority is the program "New Life", a new quality of maternity and childhood protection.
This is a social project, which will be implemented in the systemic interaction with the Ministry of Health of Ukraine, and is one of the projects that need preferential budget funding.
National project "Olympic Hope 2022" with its meaning and results is so multidimensional, that it separated into single direction.
The project aims to implement the initiative of the President of Ukraine concerning the hosting of Winter Olympic Games 2022 in the Carpathians.
The total period of implementation - about 7 years, it is supposed to attract about 11 billion grivnas. The project is extremely important for increasing of the tourist attractiveness of Ukraine, a positive international image and development of regional infrastructure. Only the fact of the declaration of this initiative concentrates views of investors and resources in the Carpathian region. The political desire to hold the Olympics in Ukraine does not cause the budget funding, because the decision will be made in 2014. But now, giving the project 'Olympic Hope' national status, we have opportunity to develop the tourism industry in large depressive regions of Western Ukraine.
The interest of investors in capital investments in winter tourism infrastructure significantly increases. Now our task is to show till 2014 what we can achieve.
In addition, the project "Olympic Hope 2022" solves the problem of lack of the adequate material and technical base that constantly complicates preparation of the Ukrainian athletes to the Winter Olympic Games. Today sports and tourist infrastructure of Ukraine remains extremely underdeveloped for the development of winter sports and recreation, Ukrainian athletes have to train abroad.
Finally, within the National Priority "New infrastructure" is foreseen implementation of only one project – “Air Express” - a high-speed rail service between Kyiv and Boryspil airport, and - the development of runway №2 at Boryspil airport. However, we plan to elaborate several strategic projects in this direction soon.
However, we have begun the practical implementation of this project.
During the visit of the President of Ukraine Viktor Yanukovych to China Framework Agreement on Funding of International Airport Boryspil-Kyiv Railway Construction and International Airport Boryspil Supporting Facilities was signed. This Framework Agreement, signed between the State Enterprise "International airport" Borispil "and the China National Machinery Industry Complete Engineering Corporation (CMCEC), allows Ukraine to obtain funding in 1 billion U.S. dollars.
For the "national projects", it’s extremely important their quick implementation, it needs to become the components of economic reforms in the country, and we continue to expect the same rapid dynamics.
Construction of railway communication prevents the transport collapse that can occur in two years in Boryspil direction in our capital. International airport "Borispol" annually increases its traffic on 25%, and the football championship Euro 2012 will increase the flow of visitors by 45%. Existing airport facilities are not able to receive such number of Ukrainian and foreign visitors and creation of high-quality transport connection between the capital and main airport of the country is a issue of national prestige.
An important difference of the project is that, in addition to direct commercial benefits, the project affects positively on other related sectors - transportation, logistics, tourism, services. In addition, the project will significantly improve the environmental situation in Kyiv and its suburb.
Qualitative transport connection between the airport and the capital will confirm the European status of the Ukrainian capital and will prove to the whole world that Ukraine corresponds to the highest standards for tourism development and conduction of important world events in the future.
Our strategy
Following first stage of implementation of "National projects" Decree of the President of Ukraine was signed on the 8th of September, which is mentioned about necessity of legislative amendments that would have introduced a special legal status of national projects. This greatly enhances the attractiveness of national projects for foreign investors.
The "National Projects" in the system of government will be managed by the State Agency of Ukraine for Investment and National Projects - specifically formed central authority, where we gather first-class project managers from the labor market.
Except for the project "Air Express" that has already begun its implementation, we expect part of mentioned projects to begin the implementation in the coming months, because they already have a pre-feasibility study. About others elaboration of design documents – pre- feasibility study and searching for investors should done by the end of next year, and therefore the income of direct investment inflows can be expected next year.
On the 28th of October we are planning to conduct wide public presentation and discussion of the "National projects" with the participation of experts, investors and media. During this presentation we will discuss every detail of national projects and in particular their projection on the life of Ukrainian regions.
Additionally, the numberof accompanying measures will take place - National Investment Forum, Presentation of projects in global financial markets and open competition for new "National projects".
I am sure that the “National Projects” are those economic reforms discussed for along time by politics and citizens. This is a chance not only to attract investment to Ukraine, but also the prospect of qualitatively renovation of approach of public administration and personnel who think in the new style.
All that is, of course, possible only if we have strong political will. And for today we have it.
