Kyiv makes problems in land allocation for underground parking

Object of the complaint: Kyiv City Council, Office of the Prosecutor of the City of Kyiv
Complaint in brief: The complainant addressed the Business Ombudsman Council with a request to stop malpractice on the part of the Prosecutor General of Kyiv, that is, attempts to cancel an investment agreement executed between Kyiv City Council and the complainant on June 6, 2014, for the construction of underground parking.
The issue raised by the complainant was systemic in nature: during the first months it was active, the BOC received complaints from several private developers of underground parking in Kyiv, who complained about pressure and attempts to cancel orders from Kyiv City Council recognizing them winners of tenders for construction works. This pressure was in the form of lawsuits to cancel investment agreements between the Municipal Department of Economics and Investments and private developers. The subject of the appeal was the rationale for granting land parcels specifically for the construction of parking space.
The fact of that tender results were being appealed is undoubtedly a deterrent for potential investors. This, in its turn, affects the business image of Kyiv negatively and discourages additional investments to develop infrastructure.
Actions taken: The BOC examined the documents submitted by the complainant and current regulation related to the case. BOC experts confirmed that the land parcel for the construction of the parking spaces was granted to the complainant on a competitive basis. Having examined the Prosecutor’s lawsuit with the aim of overturning the results of a tender in court, the BOC found some weak points in the current procedure of the decision-making process regarding the development of Kyiv City territories, including land allocation for the development of parking.
Result achieved: Given the critical shortage of parking space in Kyiv and the interests of private investors, the BOC developed recommendations that were submitted to the Kyiv City Council Chair on August 11, 2015. Implementing these recommendations would improve the procedure for preparing investment tenders and minimize the risk of disputes over procedure results, including the procedure for allocating land. The BOC will regularly monitor the execution of these recommendations by Kyiv City Council. The recommendations can be found at this link.