Page 32 - UKRRptFeb20

Davos. Noting that only €2bn of €6bn in approved loans have been disbursed, he said Ukraine needs to invest in public administration. “People need to be paid enough to make it a career – not to exit after a couple of years.”
6.1.4​ Budget dynamics - privatization
The government is transferring 35 plants of Ukrspirt to the State Property Fund for privatization​, reports the Ministry of Economic Development, Trade, and Agriculture. Of the 35 plants, eight are producing, seven can restart production within a month, 16 require significant modernization, and four need to be closed.
Ukraine doubled privatization proceeds in 2019, but failed to meet the budget targets​. Ukraine’s State Property Fund reported on January 2 that it raised UAH537mn in proceeds from privatizations in 2019, according to epravda.com.ua news reports. This is twice more than in 2018, but still significantly short of the plan envisioned in the state budget (for UAH17.1bn).
Privatization netted only 3% of the forecast budgeted amount. The amount earned -- $23mn -- barely covered the budget of the agency in charge of the program, the State Property Fund.
All the privatization proceeds came from so-called small privatizations (the sale of small state assets via electronic auctions), with no large asset having been offered during the year. Privatization proceeds were planned to finance the state budget deficit, which should have been UAH91.1bn in 2019, according to the law. The actual budget deficit reached UAH72.4bn, or UAH18.7bn short of plan.
“In the absence of large privatization assets offered, the 2019 proceeds look solid, being the second-best result in the last six years. Without offering large assets, there is no chance for meeting the ambitious privatization targets set in the budget. The 2020 privatization plan, which is UAH12.0bn, is easily achievable in case the government completes the privatization of five large companies that it initiated back in 2018. If so, 2020 could become the second-best in terms of privatization proceeds in Ukraine’s history. So far, however, the chances for meeting the 2020 privatization target look less than 50%,” Alexander Paraschiy of Concorde Capital said in a note.
Ukraine’s State Property Fund has is looking for advisors to prepare the sale of power producer Centrenergo​, one of Ukraine’s most attractive utility companies, the head of the fund Dmytro Sennychenko told journalists n January 21. The government is attempting to re-launch the privatisation programme but progress has been so and so far none of the strategically important assets have been sold. Ukraine doubled privatization proceeds in 2019, but failed to meet the budget targets. Ukraine’s State Property Fund reported on January 2 that it raised UAH537mn ($22.2mn) in proceeds from privatizations in 2019, according to epravda.com.ua news reports. This is twice more than in 2018, but still only a fraction of the plan envisioned in the state budget for UAH17.1bn. ​Centrenergo has been put up for sale and then withdrawn again multiple times​. However, the government started this year saying that it will put the utility up for sale as many times as is necessary until it gets sold.
32​ UKRAINE Country Report​ February 2020 ​ ​www.intellinews.com