Business Ombudsman Council develops recommendations to eliminate barriers in restoration of critical infrastructure
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The key challenges for businesses in participating in the restoration of critical infrastructure were the lack of necessary legal solutions and coordination between the state, business and international partners, according to the study on the problems of protecting and restoring critical infrastructure with the involvement of the private sector conducted by the Business Ombudsman Council.
According to the council's study, the financial effect of complaints from businesses involved in the restoration of critical infrastructure is more than UAH 2 billion. Based on complaints from businesses, the Business Ombudsman Council has developed recommendations to eliminate legal, administrative and financial barriers in the restoration process.
Thus, the main challenges for businesses in restoration are in the areas of project financing, contractual obligations of the parties, the regulatory environment, public procurement procedures, supplies and cost of materials, alternative energy issues, and personnel shortages.
In addition, enterprises face delays in financing and slow dynamics of the use of funds, unstable mechanisms for payment for services. In addition, management decisions on the use of international donor funds are often delayed. To overcome these problems, the council recommends developing mechanisms that will ensure timely settlements with contractors, as well as insurance and guarantee funds to protect companies in the field of restoration. In addition, it is important to optimize the processes of prioritization of budget funds and approval and distribution of donor funding.
The council also emphasized the need to reduce the risks of criminal prosecution of contractors: when using budget funds, investigations are often carried out even with respect to contracts that were properly executed.
Businesses noted the complexity of the procedures for obtaining an easement and superficies for construction, in view of which the council considers it necessary to reduce the time frame for consideration and decision-making on these issues. Enterprises also noted the uncertainty in matters of assessing the cost of work and materials and believe that the creation of a single national price base for construction materials and services, which will take into account market characteristics and fluctuations, can have a positive effect on this issue, the business ombudsman believes.
In order to improve the business experience in the sphere of public procurement, the council recommends reducing the unjustified use of simplified procurement and returning to transparent competitive procedures. It is also important to harmonize tender procedures with international standards. It is also necessary to establish clear conditions for participation in tenders in order to avoid discrimination. In addition, it is advisable to create a register of verified contractors who have experience in restoring critical infrastructure and meet anti-corruption standards, the business ombudsman's council noted.
Recommendations for reducing the personnel shortage include bringing estimated salaries to market levels, creating professional training and retraining programs in the field of construction and engineering, as well as developing mechanisms for attracting workers to the regions of restoration - creating incentives for work in frontline zones in the form of increased wages and providing social guarantees.
According to the study, in the energy sector, businesses face problems connecting to power grids, with outdated thermal infrastructure. The council recommends making a government decision on the possibility of using component depreciation for solar power plants. In addition, it is advisable to create favorable conditions for investors in alternative energy, simplify connection procedures and modernize energy infrastructure.