Ukraine Action Plan Translation
The German Government is supporting Ukraine s political and economic stabilisation via an action plan involving ministries, implementing and partner organisations, the business sector and civil society. Given the current severe crisis and the enormous challenges facing the country, this action plan is the German Government s operative contribution to rebuilding and permanently stabilising Ukraine, particularly eastern Ukraine. It supplements Germany s contribution to EU, IMF and other multilateral funding programmes and combines our comprehensive programmes for Ukraine, which are based on many years of experience, in line with the following priority areas: Energy and resource efficiency Including the rehabilitation of substations in eastern Ukraine, pilot projects and programmes on energy-efficient heat supply (including public buildings and small and medium-sized enterprises (SMEs)) Trade promotion and infrastructure Including the promotion of SMEs, advisory services and support on agricultural reform, and improving municipal and transport infrastructure (e.g. water supply, road and rail construction) Decentralisation and municipal self-government Including advising the Ukrainian Government and pilot regions on implementing decentralisation, in cooperation with Poland and the Visegrad states (Hungary, Czech Republic, Slovak Republic), and extending existing municipal partnerships Rule of law and combating corruption Including comprehensive legal advice on constitutional and judicial reform, and combating corruption in the judicial system Civil society, education, research and media Including strengthening exchange in civil society, expanding language and cultural activities, increasing media services in Russian and Ukrainian, and providing guidance on setting up a Ukrainian public broadcaster. The German Government is also providing targeted, needs-based advisory services to the Ukrainian Government by seconding experts to the Ukrainian administration. In addition to the ministries project funding, which is expected to total up to 200 million, the 2015 action plan includes an untied loan from the German Government of a further 500 million, of which 200 million will be provided to Ukraine in the form of budget support. The remaining 300 million are earmarked for reconstruction projects in eastern Ukraine with a focus on: transport infrastructure and medical facilities municipal infrastructure projects energy security 2
The German Government s new commitments in 2015 for bilateral cooperation with Ukraine currently amount to 180 million. This represents an increase of almost 50% compared with the amount provided in 2014 (over 130 million) and is likely to increase further over the course of the year. Furthermore, the current portfolio of existing measures amounts to an estimated volume of approximately 200 million in financial cooperation and 65 million in technical cooperation. The figures are preliminary amounts that reflect the current state of planning. As of 23 April 2015 Details of the Action Plan are as follows: 1) Energy and resource efficiency Developing and implementing a comprehensive modernisation concept for the municipal district heating supply (heat generation, distribution and consumption in buildings) based on a selected district in Lviv (to be carried out in cooperation with the EBRD) Rehabilitating the Ukrainian power grid (high efficiency rates by curbing transmission line losses, rehabilitating substations in eastern Ukraine) and supporting Ukraine as regards improving its power grid s connection to the European grid (improving opportunities for cross-border trade in electricity) Undertaking measures to improve energy efficiency in industry and public buildings (especially in eastern Ukraine, as energy-efficient structural change is particularly important there) Enhancing and expanding advisory services and investments in the renewable energies sector (including hydropower) Carrying out a programme of measures to improve structures and participating (via grants and state guarantees) in an investment mechanism aimed at improving energy efficiency in the municipal heat supply (turning subsidies into investments), to be implemented by the EBRD and other organisations Advising the Ukrainian Government on the introduction of a national policy to improve energy efficiency Improving infrastructure in Ukrainian nature conservation areas, developing alternative sources of income for the local population, and safeguarding longterm financing for nature conservation areas 3
Providing support on setting up regional energy agencies, including advisory and support services on promoting energy efficiency in the municipal area Providing support on the construction of an energy-efficient model district to demonstrate climate-protection and energy-efficiency standards in new building projects 2) Trade promotion and infrastructure Expanding bilateral advisory services to the economic administration to help ensure the successful implementation of structural reforms, e.g in the form of short-term advisory services by the Federal Cartel Office to the Ukrainian cartel office and tendering agencies 1 ; Continuing the management further training programme for business executives and managers Providing support on strengthening democracy and expanding the market economy, also as regards moving closer to the EU and access to the EU s internal market, as part of the consultancy services provided by the German Governmental Advisory Group Providing guidance on developing financing instruments for the targeted promotion of structural change (including the development of efficient export promotion and innovation financing structures) and SME promotion via the granting of loans Providing additional financing to the banking sector via the established partner banks and setting up a Ukraine window in the European Fund for Southeast Europe Strengthening structures in the public finance sector by gradually expanding the advisory services to the Ukrainian financial administration on the topics of customs administration, taxation and internal fiscal equalisation) Upgrading the Delegate Office of German Industry and Commerce into a fullfledged German Chamber of Commerce Abroad and posting a Germany Trade and Invest (GTAI) correspondent to Kyiv in the near future 1 The Federal Ministry for Economic Affairs and Energy would like to point out that the Federal Cartel Office is bidding for the tender for the EU twinning project on advising the National Commission for State Regulation of Energy and Public Utilities of Ukraine on electricity market reform. 4
Supporting restructuring measures in the Ukrainian economy by making extensive use of Germany s instruments for promoting foreign trade and investment Organising a (sector-based) bilateral investor summit with trade and business involvement; (to be organised by the Association of German Chambers of Commerce and Industry, the Committee on Eastern European Economic Relations and the Delegate Office of German Industry and Commerce) Setting up a scholarship programme for graduates and young professionals in cooperation with the Committee on Eastern European Economic Relations Providing support to the Ukrainian Ministry of Agriculture on drawing up a strategy for the sustainable development of Ukraine s agricultural sector 2015 2020 by seconding German experts to Ukraine Increasing cooperation in the agricultural sector, including in the field of general training and further training of agricultural experts and managers at the German Agriculture Centre in Ukraine, in advisory services on agricultural matters and legislation, in the field of trade association cooperation and in initiating new cooperation projects in areas such as guidance on agricultural trade issues in the DCFTA Conducting a refinancing programme for the Ukrainian banking sector in the field of agricultural financing Reconstructing and rehabilitating municipal infrastructure in eastern Ukraine Providing bilateral advisory services to the transport administration on adapting the national legal framework to the acquis communautaire and on the structural reforms in the transport and transport infrastructure sector, with additional support from the Federal Highway Research Institute and the Federal Railway Authority Strengthening the capacities of a Ukrainian military hospital (by donating medical supplies and equipment) and providing medical care to wounded soldiers in German military hospitals 3) Decentralisation and municipal self-government Providing advisory services on decentralisation and municipal self-government (e.g. at the oblast level) and integrated urban development, with involvement 5
by German Länder and municipalities (town twinning and possibly a regional network) Strengthening local self-government by financing municipal investments via the Ukrainian Social Investment Fund (USIF) Improving water supply and waste water treatment facilities, specifically via current and planned projects in Chernivtsi and Donetsk Providing advisory services on improving municipal infrastructure and accommodation for internally displaced persons; modernising social facilities such as schools and hospitals Expanding and intensifying existing municipal partnerships and town twinning Fostering structural reform in labour and social policy by expanding bilateral advisory services on labour administration efficiency Expanding cooperation on social security (with the aim of concluding a social security agreement) Improving rural healthcare services, boosting socio-economic development in rural areas and enhancing reconstruction under the Ukrainian Social Investment Fund (USIF) Improving Ukraine s capacities as regards HIV/AIDS support health services Enhancing Ukraine s disaster prevention capacities 4) Rule of law and combating corruption Fostering structures based on the rule of law through project-based cooperation on the rule of law / promoting democracy (in areas including constitutional law; the separation of powers; judicial, criminal and criminal trial law; training and further training in the judiciary; good governance; and the reform process in general) Providing long-term support on combating corruption, particularly through consultancy projects in the judiciary Fostering dialogue on jurisprudence and training young lawyers and people working in the legal field via the German Foundation for International Legal Cooperation Supporting the Ukrainian Government through the high-level structural and regulatory policy Consultancy Fund and the Study and Expert Fund 6
Expanding military training support with a focus on establishing structures based on the rule of law (military law, personnel, infrastructure, logistics) Further expanding (border) police support with a focus on establishing structures based on the rule of law 5) Civil society, education, research and media Promoting civil society initiatives, mediation projects, dialogue and understanding; strengthening exchange in civil society, particularly as regards NGOs active in the fields of the rule of law, human rights and civil society dialogue processes Expanding cultural activities aimed at teaching values, with a focus on the younger generation, including via trilateral programmes by the German- Polish Youth Office and the Franco-German Youth Office and collaboration with the Foundation Remembrance, Responsibility and Future Intensifying media cooperation by expanding Deutsche Welle s programme activities in Ukrainian and Russia; making greater use of social media in Russian Providing guidance on setting up a Ukrainian public broadcaster Providing further training to Ukrainian journalists and bloggers; running a work placement programme for Ukrainian journalists in Germany Helping researchers to work abroad (with German universities and research institutes); fostering internationalisation in academia; providing guidance on structural reform and quality assurance (e.g. Academy of Sciences, university education) Founding an Eastern Europe Studies Centre in Germany. This will enhance regional competence in Germany, support young researchers and increase academic exchange with countries such as Ukraine. Supporting the German minority and making use of its bridging function, including via ethno-cultural work, youth work, emergency measures for those in need among the war and post-war generation 2. 2 The war and post-war generation includes people who were expropriated, deprived of their rights, deported, sent to labour camps and lived under a commandant regime until 31 March 1956 as a result of Germany s invasion of the Soviet Union in 1941. 7
Providing guidance on professional training (e.g. through the EU-Ukraine twinning project run by the Federal Institute for Vocational Education and Training) Healthcare system: providing guidance and support on training and further training measures for qualified doctors and medical students (including in the fields of health management, psychiatric care and paediatrics); expanding exchange between universities (further training, placements); running HIV/AIDS/TB health programmes in close cooperation with NGOs 8