A primary USAID goal is to improve Ukraine’s prospects for achieving more balanced, and thereby sustainable, economic growth. USAID’s economic growth programs include technical assistance in the following areas.

Business Development

Business Investments and Loans

The Western NIS Enterprise Fund (WNISEF) is an investment fund initially capitalized with $150 million by the U.S. Government. The Fund was established in 1994 to promote privatized and newly formed private companies and entrepreneurs in Ukraine, Moldova and Belarus. The Fund provides capital and management tools for restructuring and expanding private sector projects and attracting outside resources.

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Local Investment and National Competitiveness (LINC)

Local Investment and National Competitiveness (LINC) program is a three-year initiative which will foster broad-based, sustainable growth and Euro-Atlantic integration. Working hand-in-hand with local and national government authorities, local industries, and potential investors, LINC will enhance Ukraine’s ability to compete internationally. LINC will accelerate national-level reforms, as well as build models of sub-national partnership that attract investment and provide efficient services to businesses. LINC will also assist local and regional governmental bodies of the Autonomous Republic of Crimea (ARC) to undertake improvements to the business and investment environment. This will enhance the productivity of industries and enterprises as well as diversify and reorient Crimean goods and services into more competitive markets.

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Infrastructure

Cooperation in Research and Education in Science and Technology (CREST)

The CREST Center for Energy Efficiency, selected through a peer-reviewed competition among Ukrainian universities, will develop innovative solutions and new technologies for energy conservation and efficiency while educating young scientists in this important field. Possible areas of concentration could include alternative energy, fuel cells, industrial and residential energy efficiency, and sustainable and renewable energy sources. By integrating research and higher education to focus on energy efficiency, the CREST Center will direct the attention of students and professors alike to developing cutting-edge practical solutions and technologies to improve energy conservation and efficiency. The Center will also provide information and training on best practices in energy use that can be applied throughout the country and provide long-lasting results. It will do so while helping the country develop its latent university research capacity and revolutionizing its approach to science education for students and young scientists.

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Developing the Municipal Energy Efficiency Market in Ukraine

The goal of this project is to create a stronger and sustainable ESCO operation in Ukraine, based on the actual ESCO-Rivne organization, to address the needs of Ukrainian municipal Energy Efficiency market. The project will develop the needed capacity within ESCO-Rivne to address the energy efficiency market potential of the Ukrainian municipalities, and implement the ESCO approach potential for energy efficiency projects in the municipal sector.

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Efficient Water Supply for the City of Alchevsk

The goal of the project is to establish a model for a sustainable public-private alliance (PPA) to identify, evaluate, develop and implement municipal projects for reducing commercial and technical water losses in Ukrainian cities, using a combination of international and private donor financing, applying modern approaches for better management of water systems to improve quality, and increasing the affordability of water/wastewater services for residential customers.  The PPA is to significantly reduce volumes of unaccountable water in the city of Alchevsk over a one year period, to demonstrate the economic, environmental and social benefits of proper municipal water management practices, and to initiate development of additional projects in other municipalities of the Luhansk oblast.  The project aims to significantly reduce water losses through a number of technical, operational and public outreach measures in the city of Alchevsk, and to encourage implementation of such measures in other municipalities of Ukraine.

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Municipal Heating Reform Project

The Municipal Heating Reform project will help create a financially viable and sustainable municipal heating sector able to deliver reliable and efficient services to Ukraine’s citizens, public institutions and local industries. Specifically, it will focus on strengthening the legal, regulatory, and institutional framework to improve heating services to customers; improving tariff regulation and methodology; educating the public and government officials on these matters; enhancing the capacity of municipalities to plan, manage, and fund the development of the heating systems; and improving energy efficiency in residential and municipal buildings.

Financial Sector

Capital Markets Project

The Capital Markets Project (CMP) seeks to improve the legal and regulatory framework for capital markets, leading to sustained economic growth and a sound pension system. The CMP will help: introduce the mandatory accumulation pension system (Pillar II) and strengthen the private voluntary pension system (Pillar III); build the capacity of financial sector regulators to implement effective risk-based supervision and regulate the private pension system; and develop investment grade financial instruments suitable for pension fund investment. The project will introduce a number of improvements in financial markets infrastructure institutions, such as stock exchanges, the securities depository, and professional self-regulatory organizations.

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Local Governance

Municipal Finance Strengthening Initiative (MFSI) Project for Ukraine

The main project purpose is to develop a municipal capacity to plan and finance development of municipal utility companies through fiscal decentralization, improved intergovernmental transfers and public finance management. At the national level, the implementing partner will work on improving the legislative and regulatory framework to enhance cities’ creditworthiness and develop their ability to attract budget, debt and equity financing for infrastructure development. At the local level, the implementing partner will train cities and provide them with technical assistance in capital budget planning based on performance program budgeting.

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Private Sector Competitiveness

Commercial Law

Commercial Law activities focus on assisting Ukraine in developing commercial systems and practices to create a juristic base for a market economy and legislation to support that market. USAID assistance concentrates on areas of commerce critical to market transition and supportive of reform in other sectors, such as: collateral law, bankruptcy and mortgage, and the prerequisites for commerce, including the enforcement of contracts and judicial decisions, a fair and transparent regulatory regime that facilitates commerce, and a legal environment conducive to foreign investment.

Read more about Commercial Law Project.

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