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Kinstellar Advises Automagistral-Pivden on Preparation of Proposal for Krakovets-Lviv-Brody-Rivne PPP Road Project

Kinstellar Advises Automagistral-Pivden on Preparation of Proposal for Krakovets-Lviv-Brody-Rivne PPP Road Project

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Kinstellar is advising Ukrainian road construction company Automagistral-Pivden on the preparation of an unsolicited proposal for the construction of the 300-kilometer Krakovets-Lviv-Brody-Rivne motorway, to be undertaken on a public-private partnership or concession basis in accordance with Ukraine’s new PPP and concession law.

According to the firm, a memorandum of cooperation, prepared by Kinstellar’s team in Kyiv, was signed in Kyiv on March 11, 2021, by AMP and the State Road Agency of Ukraine, and was witnessed by the Prime Minister of Ukraine, Denys Shmyhal. According to the terms of the memorandum, AMP will prepare the project proposal with its own resources, including a feasibility study and financial model for the PPP or concession arrangement. Kinstellar is acting as AMP’s legal advisor for the preparation of the project feasibility study. 

According to Kinstellar, “Ukraine’s PPP and concession law gives the state the right to engage investors to develop PPP projects. This instrument is designed to expedite the preparation of PPP projects without the expenditure of budget funds, while maintaining a competitive approach to PPP procurement. The concession law and related regulations provide for the compensation of project development costs to the investor in the event that the investor does not win the subsequent PPP tender. “

Kinstellar’s team includes Senior Counsel Daniel Bilak and Counsel Oleg Matiusha.


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