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The Business Ombudsman Council provides recommendations to state bodies on the basis of individual cases and in accordance with published systemic reports. Here we have collected information on the implementation status of systemic recommendations only.

Report name
Issued recommendations
Execution status

Systemic report "Combatting raidership: current state and recommendations"

To develop a single regulations, which would set forth the procedure for assigning postal addresses to immovable property in the territory of Ukraine and harmonization of the latter with the existing legislative provisions.

Ministry of Regional Development, Construction and Residential Services

In process
— comments: On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02.03.2018. No.7/14-2227, according to which it prepared Draft Law "On Amendments to Certain Laws of Ukraine regarding Improvement of Urban Development" (dated 04.05.2016 No.4585), which governs the issue of assigning postal addresses to construction sites within and outside the settlements. However, by the letter of the Cabinet of Ministers of Ukraine dated 30.12.2017 No.7532/0/2-17, the said draft law No.4585 was withdrawn from VR. At present, suggestions for regulating the issue of determining the procedure for providing an address for a construction site are included in the draft laws "On Introducing Amendments to Certain Legislative Acts of Ukraine on Improving the Investment Climate in Ukraine" (No.6540 dated 06.06.2017) and "On Amendments to Certain Legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06.09.2017), which are included in the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU of No.2149-VIII dated 10 March 2017. On 22.03.2018 the draft law "On Amendments to Certain Legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09.06.2017 was adopted in the first reading. At the moment, the draft law is being prepared for second reading.

Systemic report "Challenges for government and business in dealing with local government"

To finish drafting regulations governing the decentralization of government powers in all branches and spheres providing administrative and social services, and clearly identify the functions of local executive bodies and LGAs at all levels in terms of providing such services.

Ministry of Regional Development, Construction and Residential Services

In process
— comments: A number of laws have been adopted , the provisions of which regulates the issue of delegating powers from executive to local authorities, in particular, powers in the field of architectural and construction supervision (control) and improvement of urban planning legislation; provision of an administrative service for issuance of permits and provision of administrative services through the ASCs (Administrative Services Centers).

To draft and institute state quality standards and norms for administrative, social and other public services in the relevant spheres.

Ministry of Regional Development, Construction and Residential Services

Partially implemented

To continue setting up ASCs. To improve the quality and level of administrative services being provided, the Regional Development Ministry should, in coordination with other CEBs, ensure that consultative, expert, methodological and other support is provided to unified territorial communities so that they can set up and organize operations to provide administrative services in these centers.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: As of 7 March 2018, 746 ASCs were created. Within the framework of the "U-LEAD with Europe" program, support is provided for creation and improvement of up to 600 ASCs by the end of 2020, including information and communication infrastructure creation.

To organize professional development programs for officials in LGAs, local council deputies, and civil servants at LEBs to improve personnel quality for the decentralization process and the future functioning of local executive bodies and LGAs so that they can properly exercise their new powers; engage relevant state institutions, associations of local governments and civil society institutions in this process.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: The Ministry of Regional Development, Construction and Residential Services with the assistance of foreign partners (DESPRO, GIZ, UNDP, Dialog, U-LEAD, etc.), is carrying out measures to provide methodological and practical assistance to local authorities. Methodological recommendations have been developed; training seminars, lecture courses, exchange of positive experience take place regularly.Methodological support on prevention of corruption is carried out for civil servants and local authorities by the National Agency of Ukraine on Civil Service together with the National Academy of Public Administration under the President of Ukraine. About 70 000 employees are training each year.

To establish a constitutional basis for regulating the devolution of power and simultaneously instituting state oversight of LGA decisions while continuing to work on amending the Constitution as necessary, via Draft Law No.2217а dated 1 July 2015 "On amendments to the Constitution of Ukraine (regarding decentralization of power)".

Ministry of Regional Development, Construction and Residential Services
Verkhovna Rada of Ukraine

In process
— comments: Status as of 10 December 2015 Committee's submission for review was presented. Pending review.

To institute drafting transparent competitive procedures for selecting personnel to staff LGAs and the executive bodies of local governments, and formulating the necessary qualification requirements.

Ministry of Regional Development, Construction and Residential Services

In process
— comments: As of today, the outdated procedure for conducting a competition for filling vacancies of civil servants listed in the CMU Resolution No.169 dated 15 February 2002, is being followed.

To monitor and evaluate the work of local state administrations and their officials to ensure impartial oversight and greater effectiveness in public administration, in line with the new Law of Ukraine "On the civil service."

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: Monitoring and assessment of the of local state administrations and their officials activities is stipulated in the Draft Law "On Service in Local Self-Government Authorities" No.2489.The CMU Resolution No.987 dated 21 December 2011 "On Annual Reports of Heads of Oblast, Kyiv and Sevastopol City State Administrations" obliges the Heads of Oblast, Kyiv and Sevastopol City State Administrations to submit reports annually (by February 1) on exercising the assigned powers by the relevant state administrations as well as on the development status of the respective territory according to the established form.

To join forces with all-Ukrainian associations of LGAs to draft a law establishing the procedure for the further functioning or elimination of county councils in counties whose boundaries coincide completely with those of territorial communities.

Ministry of Regional Development, Construction and Residential Services
Regional State Administrations
All-Ukrainian associations of LGAs

In process

To support the Bill "On prefects," which give prefects the power to rescind any acts by local government agencies that violate the Constitution or Laws of Ukraine and simultaneously appeal to a court.

Ministry of Regional Development, Construction and Residential Services
Verkhovna Rada of Ukraine

In process

To provide a mechanism for taking individuals working at local government agencies to court, for instance, by amending the Criminal Code and the Code on Administrative Violations to increase the liability of government personnel at the local level.

Ministry of Regional Development, Construction and Residential Services

In process
To join forces with all-Ukrainian associations of LGAs and similar organizations to provide LGAs and LEBs with guidelines for actually carrying out the process of unifying communities, with particular attention to the procedure for transferring contractual commitments.

Ministry of Regional Development, Construction and Residential Services
All-Ukrainian associations of LGAs

Implemented
— comments: The methodical recommendations were developed and newly elected united territorial communities were provided with the necessary informational materials.

To develop recommended guidelines for local government agencies regarding: compliance of land lease-related regulations adopted by local councils with Ukrainian law; the inclusion of clear rules for clear rules for the LGA and individuals interested in leasing a land plot or extending an existing lease to act, including clear timeframes for LGAs to make decisions to offer or not offer a land plot for lease, a list of required documents, publicly accessible texts of related regulations, and so on.

Ministry of Regional Development, Construction and Residential Services
Ministry of Agricultural Policy and Food
State Regulatory Service

Implemented

Systemic report "Reducing the risk of corruption and attracting investment to the construction industry"

To develop an appeal mechanism against local architecture and construction oversight actions.

Ministry of Regional Development, Construction and Residential Services
SACI

Implemented
— comments: http://www.dabi.gov.ua/detsentralizatsiya/ 65 newly created state architectural and construction controlling authorities operate locally. In accordance with p. 4 of subpara. 2 of para. 4 of the Regulation, SACI checks the legality of decisions as regards urban development activities adopted by supervisory authorities, as well as in accordance with subpara. 4 of para. 4, cancels or suspends the effect of decisions made by supervisory authorities in accordance with its powers, established by law, that violate legislative requirements as regards urban development activities, with simultaneous drawing up of a protocol in accordance with the Code of Administrative Offenses of Ukraine and subsequent disclosure of such information at the SACI official website; para. 11 stipulates that SACI shall decide on registration or return of the Declaration on object readiness for operation by means of supervision (without a right to register declarations), granting or revoking the permit for execution of construction works (wthout a right to issue a permit), and on refusal to issue a certificate (without the right to issue a certificate).
To institute an "e-office" for submitting documents to SACI for the purpose of getting building permits.

Ministry of Regional Development, Construction and Residential Services
SACI

Implemented
— comments: The Order of the Ministry of Regional Development of Ukraine No.166 dated 16 July 2015 "On Amendments to the procedure for functioning of electronic system for implementation of declarative procedures in construction", which introduces access of entities to information on the procedure for implementation of declarative procedures in construction in electronic form via the website of the System: https://e-dabi.gov.ua/
To institute tacit consent for projects that represent a low level of complexity, in the form of an electronic notice that cannot be rejected by oversight agencies and gives the automatic right to begin construction.

Ministry of Regional Development, Construction and Residential Services
SACI

Implemented
— comments: The Order of the Ministry of Regional Development of Ukraine No.118 dated 18 May 2017 "On amending the procedure for maintaining the unified register of documents that grant right to perform preparatory and construction works and certify acceptance of fully-construed objects into operation, information on return for revision, refusal to issue and cancellation of indicated documents".
To introduce check of information that is in state registers without involvement of applicant when preparing licenses to carry out construction works.

Ministry of Regional Development, Construction and Residential Services
SACI

Implemented
— comments: P. 7 of Art. 12 of the Law of Ukraine "On licensing various commercial activities" has been amended in accordance with the Law of Ukraine dated 26 November 2015 No.835-VIII

To propose amendments to the Law of Ukraine "On regulating urban development activity" and several other legislative acts to replace the procedures for registering notices of commencing construction and the commissioning of buildings of average and significant liability class on commencing construction and the commissioning of buildings with permits to carry out such construction works and certificates accordingly.

Ministry of Regional Development, Construction and Residential Services

Implemented

To work with regional administrations to determine the state of urban development documentation in specific towns and the need to develop it in order to resolve the question of adding specific expenditures to the list of those what might be covered by the State Regional Development Fund in the next budget cycle.

Ministry of Regional Development, Construction and Residential Services

Implemented

To work with interested agencies to draft changes to legislation that will clearly regulate what constitutes unclassified or open access information and what is restricted information, and then nudge local government agencies to publish their urban development plans at their websites.

Ministry of Regional Development, Construction and Residential Services

Recommendation is no longer relevant

To collaborate with local government agencies, related associations, professional business societies, and experts to identify and draft amendments to the Law of Ukraine "On regulating urban development activity" in terms of cancelling the equity contribution for developers or improving the current procedure by, for instance, authorizing the CMU to establish a universal procedure and payment for contributing the equity, to ensure that this contribution is used for the stated purpose, and to mandate local government agencies to regularly publish information about the size of accumulated contributions and the ways they are being utilized.

Ministry of Regional Development, Construction and Residential Services

Implemented

To draft a legal act approving the technical regulation of building materials in full compliance with the EU Regulation No.305/2011, passed by the European Parliament and the Council on 09 March 2001, to establish harmonized conditions for placing building materials on the market, and repealing the Council's Directive No.89/106/EEC, in compliance with Ukraine's commitments to the Association Agreement.

Ministry of Regional Development, Construction and Residential Services

Implemented

To propose amendments to Ukrainian land legislation to directly obligate LEBs to re-sign leasing agreements for land plots with new owners of the properties following a simplified, transparent procedure

Ministry of Regional Development, Construction and Residential Services
Ministry of Justice

In process

To provide clear distribution of powers between different agencies regarding the assignment of postal addresses to buildings and properties, in Sec. I "Organizational and legal basis for local government" in the Law of Ukraine "On local governance" and Part 1 "The competencies of local state administrations" in the Law of Ukraine "On local state administrations".

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.

To establish procedures for assigning a postal address in the Law of Ukraine "On postal communication" by: (i) designating the CMU as the authorized body to establish a procedure for assigning addresses with a complete list of documents necessary, reasons for possible refusal, and other key issues; and (ii) establishing that the term "postal address" may only be used in the context of legislation on postal services.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.

To amend the Laws of Ukraine "On local governance", "On local state administrations", "On regulating urban development activities," "On framework of urban development", "On architectural activity", and "On advertising", being aimed at determining the address of the location of a construction site and further use in the context of regulation of the construction, commissioning of objects, as well as state registration of real rights to real estate.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: On 20 March 2018, the Council received a letter from the Ministry of Regional Development, Construction and Residential Services dated 02 March 2018. No.7/14-2227, according whereto the last Draft Law "On amending certain laws of Ukraine regarding improvement of urban development" was elaborated (as of 04 May 2016 No.4585), which regulated the issue of assigning postal addresses to the construction sites within and outside the settlements. However, according to the letter of the CMU dated 30 December 2017 No.7532/0/2-17, the said Draft Law was withdrawn from VRU. At present, suggestions for regulating the issue of determining the procedure for providing a construction site with address are included in the Draft Laws "On amending certain legislative acts of Ukraine on improving the investment climate in Ukraine" (No.6540 dated 06 June 2017) and "On amending certain legislative acts of Ukraine in the sphere of urban development" (No.7085 dated 06 September 2017), which are included on the agenda of the seventh session of the VRU of the eighth convocation in accordance with the resolution of the VRU No.2149-VIII dated 10 March 2017. On 22 March 2018 the Draft Law "On amending certain legislative acts of Ukraine in the sphere of urban development" No.7085 dated 09 June 2017 was adopted in the first reading. At the moment, the Draft Law is being prepared for a second reading.

To propose amendments to the Commercial Code of Ukraine to change the section on subcontracting agreements for the execution of works that are drawn up in line with the Law of Ukraine "On public procurements," to require providing both the commissioner and the executors -contractors, subcontractors and engineers engaged in technical supervision - with open access to information about the progress of the works for the purpose of ensuring their accountability to the public at all stages of the procurement process, from design to completed construction and commissioning.

Ministry for Development of Economy, Trade and Agriculture of Ukraine
Ministry of Regional Development, Construction and Residential Services

Recommendation is no longer relevant

Systemic report "Natural monopolies vs. competitive business: how to improve relations"

To develop amendments to the Law of Ukraine “On regulating Urban Development Activities” to encourage local governments to develop territorial and detailed zoning plans.

Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: Implemented in a different way.

To develop amendments to the Law "On regulating urban development activities" regarding the cancellation of developer's equity contribution as an outdated mechanism that is applied in a non-transparent way and appears to be an indirect tax, which is forbidden by law.

Ministry of Regional Development, Construction and Residential Services

Implemented

To organize public hearings with business associations, experts and the community to come up with better instruments for territorial development on a transparent basis.

Ministry of Regional Development, Construction and Residential Services

Implemented
To develop a concept of switching to a fixed hook-up fee with due consideration of all required procedures, financial sources and stakeholders that relieves the customer from the obligation to seek Technical Specifications for getting hooked up.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: There is a final (but not yet approved with the Energy Community) Draft Methodology (order) for the formation of the fee for hooking-up to transmission and distribution systems.Also, according to the clause 4.6.2 of the Code on Distribution Systems in the case of standard and non-standard “turnkey” hook-up, the development of design and appraisal documentation for the electrical installation of external power supply is carried out by the DSO (and includes an input device with a switching device).Meanwhile, the technical specifications contain requirements for engineering maintenance in the customer's networks and, accordingly, the design and construction thereof shall be ensured by the Customer; the terms of reference (technical task) contain the requirements for engineering maintenance in the DSO networks and, accordingly, their design and construction shall be carried out by the DSO
To take into account all possible sources of funding (for modernization) in order to establish fair hooking-up fee.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: There is a final (but not yet approved with the Energy Community) Draft Methodology (order) for the formation of the fee for hooking-up to transmission and distribution systems.
To develop clear parameters of hooking-up fee calculation.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

Implemented
— comments: In May 2017 the NEURC has developed and provided on its website an Estimated Cost Calculator for the standard hook-up service: http://www.nerc.gov.ua/?calc=ok Furthermore, the formula for calculating the fee for non-standard connection, contained in the Draft Methodology (order) for the formation of the hooking-up fee for the transmission and distribution systems, allows to calculate the cost of such a hook-up in advance

To develop the legal framework for establishing the authority of local government agencies and the procedure for determining the priority of contracts for the purchase of heat energy, should two or more heating supply companies be connected to the heating network.

Ministry of Regional Development, Construction and Residential Services

In process
— comments: Article 21 of the Law of Ukraine "On heat supply" sets forth the conditions for the increase of competition in the heat energy market and establishes basic principles of such competition, which, however, were not further developed. In particular, the procedure for conducting tenders for prioritizing conclusion of the heat energy purchase contracts, should two or more heating supply companies be connected to the heating network, is not currently developed or approved.
To hold consultations with licensees, experts and the public on issues regarding hooking-up of producers and consumers to heating networks and ways to resolve them.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services
Antimonopoly Committee of Ukraine

In process
— comments: The NEURC in cooperation with the consultants of the USAID Municipal Energy Reform is working on drafting relevant regulatory documents for hooking up to centralized heating supply system. Within the framework of this USAID project, the NEURC’s specialists are members of a working group on the development of the procedure (methodology) for hooking up to heat networks, calculation of the hooking-up fee and financing of hook-up services, etc. The said procedures (methods) are not yet approved and therefore relevant consultations should continue to be carried out, if necessary
To renew the rules for connecting to water supply and sewage systems so that they regulate, among others, the issue of providing/receiving Technical Specifications, establishing the hooking-up fees for the water supply and sewage networks based on a formula using the costs of the works and services needed at various stages in this process.The new rules should clearly define “access” and “connection/hook-up” as well as contain norms that regulate a number of issues related to:issuing and receiving hook-up permission;drawing up construction blueprints showing the water and sewage connections;providing and receiving Technical Specifications, which includes establishing the order or methodology for formulating the value of specification issuing services;establishing the procedure for paying for a hook-up that includes the value of works and services at various stages of this process, including works and services related to hooking up to water supply and sewage networks;determining the equity contribution, with th s intention of preventing cases where customers are pressured under the guise of an equity contribution to buy materials and/or to carry out certain works on behalf of the provider that are not directly related to the procedure of hooking up ordered by the customer;covering temporary connections;launching networks for further transporting of water resources;changing ownership to prevent abuse and setting excessive installation requirements.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

In process
— comments: According to the information provided by the NEURC and the Ministry of Regional Development, Construction and Residential Services, the latter is currently working on amendments to the Rules for the use of centralized municipal water supply and sewage systems in settlements of Ukraine, in particular, to regulate the issue of specifications for hooking-up to centralized water supply and sewage systems. The relevant task is included in the Plan of applied scientific and technical developments in the priority areas of activity in the spheres of construction, housing and communal services and regional development of the Ministry of Regional Development, Construction and Residential Services in 2017. To date, the relevant changes have not been developed and approved.
To develop a plan for the switch from cost-plus rate setting to RAB methodology for power and gas companies and implement all the necessary measures to ensure incentive-based rate setting in centralized heating, water and sewage services.

National Energy and Utilities Regulatory Commission
Ministry of Regional Development, Construction and Residential Services

In process
— comments: During 2015-2017, the NEURC has developed a regulatory framework for implementation of incentive management in the fields of energy and utilities, namely power transmission, power distribution field, heat- water supply and sewage. Thus, the Council is currently attempting to identify areas in which the concept of switching from "cost plus" rate setting methodology to RAB has not been yet developed and needs further regulatory settlement.
To draft amendments to the respective asset valuation methodology to improve the base for assessing and verifying results.

National Energy and Utilities Regulatory Commission
Ministry of Energy and Coal Industry
Ministry of Regional Development, Construction and Residential Services
State Property Fund of Ukraine

In process
— comments: The representatives of the NEURC, together with the SPFU representatives, participated in the working group on development of amendments to the Methodology for valuation of assets of natural monopolies entities, business entities on adjacent markets in the field of combined production of power and heat energy, approved by the SPFU Order No.293, dated 12 March 2013. Based on Working Group joint work results and cooperation with the USAID Project consultants, the changes were prepared for consideration and proposals, as well as sent for the SPFU’s consideration by the letter No.1510/18/7-17 dated 13 February 2017. Preparatory work for introduction of incentive management in the field of heat supply with respect to development of aggregate cost of reproduction value, which shall be attached to the Methodology, is carried out directly by the participants of the pilot project, namely PJSC "Kyivenergo" and PJSC "Oblteplocomunenergo" in Chernihiv with the participation of the State Enterprise "Scientific - Research institute of Building Production”.

Systemic report "Getting access to electricity"

To hook up a customer’s power unit to power network pursuant to contract only (without filing a separate application).

Ministry of Regional Development, Construction and Residential Services

In process
— comments: In accordance with the Section 3 of the Code on Distribution Systems, the DSO/oblenergo implements long-term planning for the development of the distribution system, including conducting all the necessary researches and assessments/forecasts. For this purpose, the DSO develops a DSO Development Plan, which is to be submitted for approval to the Regulator in accordance with this Code.The DSO Development Plan is a document that contains the planned items of new construction, reconstruction and technical re-equipment of the distribution system for the next 5 calendar years, with the definition of the required amount of investment and the timing for the implementation of the relevant measures.Therefore, we assume that the electrification of a certain territory may be included to the DSO development plan.