Реалізовано
Project “Extractive Industries Transparency Initiative in Ukraine: Regional Dimension”

The goal of the project is to create tools for transparent management of hydrocarbon extraction and production at the local level and to establish productive cooperation among the three parties of the initiative: government authorities and local self-government, society, and extractive companies in the regions of Ukraine.

Термін реалізації:
27.06.2018 – 28.01.2019
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Про проєкт

The project “Transparency Initiative for Extractive Industries in Ukraine: Regional Dimension” is implemented with financial support from the Governments of Germany and the United Kingdom through the “Effective Public Finance Management” project, implemented by the federal company Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH.

The relevance of the project is driven by several factors. The first is the adoption of Ukrainian Law No. 1793-VIII, according to which, starting from 2018, 5% of the rent payments from hydrocarbon extraction are allocated to local budgets. Currently, pilot communities need to demonstrate that local self-government bodies are capable of rational, transparent, and efficient use of these funds to restore the social sector, improve the quality of life of the population, and promote the socio-economic development of the community. This will help preserve the practice of allocating part of the rent to local budgets and provide grounds to initiate an increase of this share from 5% to 10%. Other factors relate to the low awareness among communities about the modern procedures for issuing/extending licenses and conducting environmental impact assessments, resulting in insufficient involvement of local populations in decision-making processes regarding mineral deposit development, which subsequently causes conflicts between the community, authorities, and extractive companies.

Within the framework of the project “Transparency Initiative for Extractive Industries in Ukraine: Regional Dimension,” cooperation is planned with pilot united territorial communities (UTCs) in Kharkiv, Sumy, Poltava, and Lviv regions, where oil, natural gas, and condensate extraction takes place. This cooperation includes addressing the following tasks (considering the specific characteristics and needs of each territorial community):

– Identification and monitoring of rent payments to the pilot UTCs (including preparation of maps of special permits and extraction wells for oil, natural gas, and condensate for the UTCs, monitoring information about subsoil users and rent payments through open databases, etc.);

– Using best democratic practices to involve the public in defining strategic development directions of the community, priority goals, and tasks to which rent funds may be allocated (including discussions of innovative and creative ideas for project implementation that could become the community’s hallmark);

– Engaging representatives of the three parties — authorities, civil society, and business (extractive companies) — in an open dialogue to identify priority development areas for selected UTCs and make decisions based on consensus;

– Developing draft Community Charters and Socio-Economic Development Plans (if needed);

– Conducting trainings for representatives of local self-government bodies and civil society on writing project proposals for regional, national, and international grant competitions, to enable multiplying rent revenues by co-financing projects implemented with grant funds.

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