Swiss-Ukrainian Decentralisation Support Project DESPRO announces the contest on selection of the pilot project of investment projects’ financing by means of placement of bonds of local loans.

The objective of the project is to support local initiatives directed at solving problems of hromadas by attracting funds from private investors to regional infrastructure development projects.

City councils may become the participants of the competition, if the number of inhabitants of the city does not exceed 500 thousand people. At the same time, preference is given to the cities that are not oblast centers.

The winner of the contest will get a free advisory support on preparation of the documents and calculations, on the volume and conditions of loans necessary for substantiation and approval with the Ministry of Finance; documents necessary for issue registration and prospectus for bond issue of local loans at the National Commission on Securities and Stock Market; and on search for investors.
Successful implementation of the pilot project by the winner of the contest with support of DESPRO Project will allow to restore local loan bonds as a tool for attracting funds, create the image of the winning city as an investment attractive one, and disseminate its experience in other Ukrainian cities.

The funds from placement of bonds are used to finance the budget of the city council budget development and are used to create, increase or update local strategic objects of long-term use or objects that ensure the fulfillment of the tasks of local councils aimed at satisfying the interests of the population and hromadas of the cities.

Priority projects will belong to the following domains: 

• energy and resource conservation; 
• solid waste recycling;
• development of transport infrastructure;
• tourism development;
• construction and major housing repair;
• modernisation of cities’ engineering infrastructure. 

The participant of the contest must clearly define the purpose of using the financial resources involved in the placement of bonds of local loans, to reveal specific volumes and directions of their use. The amount of funds planned to be attracted should not be less than UAH 20 million.

The total amount of borrowings to the local budget by issuing local loan bonds may not exceed the amount of the budget deficit of the development of special fund of the local budget for the corresponding year.

In order to take part in the contest it is necessary to load and fill in an application form and send it to e-mail v.kozak@despro.org.ua  
Deadline for submitting projects is 22 December 2017. 

The decision on the winner of the Contest will be made by the Council of the Contest within 5 days. The winner of the Contest will be personally notified of the victory.

Contact person: Vyacheslav Kozak, v.kozak@despro.org.ua