Conference Organizers: AHK Ukraine - German Chambers of Commerce Abroad and the Agency for Business and Development
Topics Covered: A representative of the European Investment Bank presents projects in Ukraine, backed by related presentations of the Lviv Transport Company and the head of Ukraine's Dream Platform.
Summary: The meeting discussed procurement opportunities in Ukraine funded by the European Investment Bank (EIB), as explained by EIB Senior Procurement Specialist György Bessenyei. The EIB finances projects worth €500 million annually, with specific procurement thresholds for different sectors.
Iryna Ivanyshyn, of the Lviv Transport Company, shared her experience with a €20.8 million tram project in Lviv, highlighting timely procurement and challenges.
Viktor Nestulia, Head of the Dream Project Office, introduced Dream, a digital platform for public investment management, which will soon be mandatory for all projects in Ukraine. The session concluded with a Q&A, addressing budget transparency and tender creation for innovative solutions.
Handouts, Slides and Other Assets Mentioned:
Agenda:
Timestamps:
Introduction and Meeting Overview (0:03)
EIB Procurement System and Policy (5:54)
EIB Procurement Requirements and Practices (10:12)
Challenges and Considerations in EIB Procurement (15:54)
EIB Procurement Procedures and Complaints (19:26)
Lviv Municipal Enterprise Project Experience (26:08)
Dream Platform Overview (41:01)
Q&A Session and Closing Remarks (58:09)
Session Transcript:
Unknown Speaker (00:03):
Can we?
Carolin Welzel (00:15):
Hello? Just a couple more minutes, and we will get started as people come into the room. The speakers are here, so we are almost all set.
Carolin Welzel (01:29):
Hello, welcome everybody. I'm hearing an echo, so somebody is probably causing it. My name is Carolin Welzel, and I'm really glad you're here for Ukraine STEP, which stands for Successful Tenders and Procurement. Today, we'll look at some tender opportunities in Ukraine. Thank you all for making the most of your lunch break to join us.
We are organizing this jointly with AHK Ukraine, the German Chamber of Commerce and Industry in Ukraine. I’m working for the Agency for Business and Development, part of the BMZ universe, and we’re a one-stop shop for companies wanting to do business or expand in developing and emerging countries.
Today, we'll look at tenders that are currently open and ongoing, financed by the European Investment Bank (EIB). It’s a great pleasure to have a procurement expert from EIB with us to give firsthand information and answer your questions.
A quick look at today’s agenda: after my introduction, I will hand over to Yerby from EIB, who will talk about procurement policies and specific opportunities. We also have Mrs. Irina Ivanishin from the Lviv Transport Company, a partner of EIB for one of the projects, to explain how the link between the financing side and the execution side works. Lastly, we’ll hear from Victor Nestulia, head of the DREAM Project Office. DREAM is a platform for ongoing projects in Ukraine’s reconstruction, and Victor will explain the opportunities linked to it.
Afterward, we’ll have time for your questions. Final words will come from our partner organization, AHK, represented by my colleague Natalia. Alright, that’s enough for now, and I’ll hand over to you, Pierre. You have slides prepared, and we’ll make sure everyone receives them after the session. The floor is yours.
Gyorgy Bessenyei (05:49):
Good afternoon. I'm Gyorgy Bessenyei from the European Investment Bank. I’m responsible for procurement policy development, especially regarding Ukraine. It's a pleasure to present some of our policy principles.
We’ve changed our approach a bit, giving more weight to reaching the market and engaging in consultations. Previously, we waited for clients to come to us. Now, we’re more proactive. The EIB primarily finances projects inside the European Union, with about 10% of our financial activity relating to projects outside the EU.
Can everyone see my slides? Okay, great. The legal framework for how the EIB works outside the EU is based on a framework agreement with the borrowing country. Once we finance a project, we sign a finance contract with the promoter, and within this contract, we define procurement procedures. We also require the promoter to give us audit rights.
Our Guide to Procurement, available on the EIB website, sets the conditions for procurement. Inside the EU, we rely on national laws, but outside the EU, we require adherence to principles like equal treatment, non-discrimination, proportionality, and transparency. Ukraine, for instance, is harmonizing its laws with the EU.
We don't provide a standard bidding document, but we allow promoters to use their own documents or those of other international institutions, adapted to EIB requirements. If there’s a conflict between national requirements and our Guide to Procurement, the guide prevails.
For projects outside the EU, open international tendering is required for contracts over €5 million for works, and over €200,000 for goods and services. Consultancy services also follow specific procedures.
We publish tender opportunities on the EIB website, so I encourage you to check it regularly. We have three main types of complaints: against the promoter, which can be addressed to the promoter or a national body; and against the EIB, which can be addressed directly to us.
In Ukraine, we have a portfolio of over 50 projects across various sectors like transport, energy, and urban development. We also signed a mutual reliance agreement with EBRD to co-finance projects.
Thanks for your attention, and I’ll now pass the floor to Irina, who will share her experience from one of our projects.
Carolin Welzel (26:34):
Thank you very much. Irina, please go ahead.
Iryna Ivanyshyn (27:15):
I am head of the Project Implementation Unit at Lviv Municipal Enterprise, part of Lviv City Council. Over the last 10 years, we’ve invested more than €15 million into developing public transport infrastructure, financed by the EIB and EBRD.
Today, I want to share our experience with a successful but challenging project: the procurement of 10 low-floor trams for Lviv. The project was part of the Ukraine Urban Public Transport Project, financed by the EIB. It involved many international agreements and manuals, including the EIB’s Guide to Procurement and anti-fraud policies.
The tender procedure started in 2019, and we received the last tram in March 2024. It was an international open procedure, taking about eight months to complete, which is quite fast for such a large contract. The project budget was €20.8 million, including VAT, which the city council financed.
The contractor was a consortium of Electronmash (Ukraine) and Electron Trams (Germany). The trams were delivered over 39 months, with some delays due to payment issues during the war. Despite the challenges, the project was successful. Thank you.
Carolin Welzel (39:03):
Thank you, Irina, for sharing your experience. I’m glad you’re back with us, and it’s great to see how important the role of local execution is in projects like these. Now, we have one more speaker, Victor. Over to you to explain the role of DREAM.
Viktor Nestulia (41:30):
Thank you. DREAM, or Digital Restoration Ecosystem for Accountable Management, was initially designed to manage assets needing reconstruction in Ukraine. It has since evolved into a public investment management system.
DREAM allows local communities to register and submit projects, which are then prioritized. This will soon be regulated by law, making DREAM mandatory for public investment projects. It’s already in use by over 1,200 communities. You can explore projects on the platform, subscribe to updates, and see business opportunities.
For example, DREAM integrates procurement processes with the ProZorro platform. You can track projects, subscribe to updates, and access due diligence services. Analytics tools allow you to filter by sector and download detailed reports.
In short, DREAM is becoming a central hub for public investment projects in Ukraine, ensuring transparency and accountability. Thank you.
Carolin Welzel (52:16):
Thank you so much, Victor, for the tour of DREAM. I encourage everyone to get familiar with the platform to explore opportunities in Ukraine. We now have time for some questions.
Arman Bakhtiar (53:54):
Hi, Arman Bakhtiar here from KPMG. I have two questions. First, for Gyorgy, could you give an indication of the budget the EIB will provide for the next year or two? And for Victor, how does DREAM prioritize projects for funding?
Gyorgy Bessenyei (54:35):
The total ongoing budget is around €500 million per year, but this is divided between all sectors. Larger projects, like urban transport, might get up to €200 million each.
Viktor Nestulia (56:12):
Prioritization is complex and involves collaboration with multiple ministries. DREAM provides data, but funding decisions are made by the funding entities, such as the EIB, based on their own criteria.
Carolin Welzel (58:03):
Thank you both. Does anyone else have questions?
Sven Riesbeck (59:10):
Yes, I’m from EcoToilletten in Germany. My question is about tenders for sanitation and waste management. How can we introduce new technologies into the tender process?
Carolin Welzel (1:00:15):
That’s a great question. One way is to participate in private sector engagement meetings organized by IFIs like the EIB. You can also reach out directly to procurement agents for a meeting to introduce your technology.
Nataliia Hryshchenko (1:03:41):
Thank you all for joining. We will have another deep dive session on October 24, focusing on projects by NEFCO. See you next month!
