EU-LEAP project

Project: Implementation of a flexible property management model for state and municipal non-profit companies

The EU-Leap team provides analytical and expert support for the project. The project aims to introduce property and financial autonomy for state and municipal non-profit organizations, particularly in the fields of education and healthcare.

Project Materials

Research: Current State and Asset Management Opportunities of Educational Institutions, conducted within the framework of the project "Implementation of a Flexible Asset Management Model for State and Communal Non-Commercial Companies".

Relevance:

State and municipal institutions, especially in education and healthcare, do not have real property and financial autonomy. Public property often lies idle, deteriorates, or requires significant maintenance costs. Institutions cannot independently dispose of assets, attract partners or investors, lease property, or reinvest income. In the education sector, reform is further complicated by the ban on the privatization of educational institutions' property.

Project goal:

Introduce a flexible model for managing public property by transforming state and municipal institutions into non-profit companies with real powers to dispose of property. The reform provides for the creation of authorized capital from separate property, the transfer of other property on the right of usufruct, and the granting of financial autonomy to such associations for leasing, PPPs, investment, and infrastructure renewal. Separately, it provides for the removal of restrictions that currently block the effective use of property in education.

Project objectives:

Introduce a mechanism for transforming institutions into state-owned and municipal non-profit companies.
Introduce the possibility of forming statutory capital from property that is not prohibited from privatization.
Allow the transfer of other property on the right of usufruct.
Remove legislative restrictions that prevent reform in education.
Provide a legal framework for independent property management — leasing, PPP, alienation, pledge, participation in projects.

Expected results:

Real property autonomy.
Effective use of public property: reduction of downtime and losses.
Ability to generate revenue for the development of services and infrastructure.
Reduction of bureaucratic burden on public authorities.
Stimulation of economic activity in the budget sector.
Creation of conditions for the renewal of property in education and healthcare.