An expert of the Fund “Safe Ukraine 2030” has conducted and published results of the study on the partnership between the public and private sectors in Ukraine's defense procurement.
The study outlines the approaches and legal definitions of public-private partnerships in Ukraine. It highlights the discrepancies between current legislation and modern practices of partnerships in the field of national security and defense. The focus is placed on the urgent need for Ukraine to mobilize resources from both the public and private sectors to resist external threats, create safe living conditions, and emphasize the vital role defense procurement plays in this process.
The study examines the current state of legal regulation for defense procurement and its practical implementation. Positive developments in this area include the use of the "Prozorro" system for procurement, the introduction of an electronic goods catalog, efforts to align regulatory frameworks with NATO and EU standards, regulatory flexibility, and the establishment of the "MOD Partner" electronic portal for suppliers.
However, the study also identifies several problems, such as the need for democratic and civilian oversight mechanisms, corruption prevention, insufficient transparency in defense procurement processes based on outdated Soviet-era practices, the monopoly of Ukroboronprom in weapons production, and the lack of favorable conditions for private investors to enter the defense production sector due to regulatory burdens.
The conclusion emphasizes that defense procurement is a crucial area of activity for the state, both economically and in terms of national security, especially given the ongoing confrontation with Russia. Public-private partnerships in defense procurement involve supplying essential goods and services to security and defense forces under current legal frameworks, ensuring Ukraine’s safety, economic development, efficient use of budget funds, and providing profit opportunities for the private sector. These procurement procedures should be viewed as an example of PPPs in national security, requiring legal formalization, including the elimination of dual legal regulations.
It is stressed that improving legislation in this field should be seen as a means to enhance the efficiency of such partnerships. This process requires further development, including reducing the number of regulatory acts and requirements, standardizing procedures in line with EU public procurement standards, creating equal competition conditions, and ensuring clear and transparent procedures (https://doi.org/10.5281/zenodo.13788612).
Comments