EU-LEAP project

Project: Reform of municipal enterprises

We help communities implement corporate governance in accordance with Law No. 4196-IX - from the transition from utility companies to new organizational and legal forms to the introduction of transparency and accountability standards.

The EU-Leap team is implementing the project together with the LRHub Economic Growth Center team and with the support of members of the Ukrainian Parliament.

Relevance:

There are almost 14 000 municipal enterprises in Ukraine, most of which have signs of inefficiency – loss-making, politicization, lack of management strategies. Law No. 4196-IX introduces a new model of management of legal entities of municipal property: a ban on the creation of new municipal enterprises, a transition to forms of economic or non-entrepreneurial partnerships, and the introduction of corporate governance standards. However, communities may avoid these changes due to fears of losing political control and the complexity of new requirements. The project is designed to overcome this resistance through training, explanation, and support.

Project goal:

Encourage communities to implement corporate governance reform in municipal enterprises, ensure transparency, accountability, and efficient use of municipal property.

Project objectives:

Conducting an awareness campaign among representatives of local government units
Providing methodological and advisory support to communities regarding the reorganization of the CP
Support for the implementation of Law No. 4196-IX at the local level
Formation of regional reform support groups
Monitoring implementation and assessing the impact of the reform

Expected results:

Increasing the efficiency of management of municipal property by legal entities, optimizing local budget expenditures, increasing the transparency of municipal activities and reducing corruption risks, raising awareness among representatives of local government and building public support, creating regional networks for implementing the reform, strengthening the investment attractiveness of the region, and implementing EU and OECD standards in the field of public asset management.