Ukraine Urban Public Transport Project

Project Procedures Manual

Final Version: 20th December 2017

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Contents

1 Introduction ............................................................................................................................................................................................... 6
1.1 The Ukraine Urban Public Transport Project (UUPTP) ..................................................................................................................... 6
1.2 Purpose and structure of the manual ................................................................................................................................................. 6
1.3 Definitions .......................................................................................................................................................................................... 7
1.4 Procedure for updating the manual ................................................................................................................................................... 8
2 Project structure and set-up ..................................................................................................................................................................... 8
2.1 Project stakeholders and bodies ........................................................................................................................................................... 8
2.1.1. Ministry of Infrastructures of Ukraine (MoI) ................................................................................................................................ 8
2.1.2. Ministry of Finance (MoF) .......................................................................................................................................................... 9
2.1.3. Steering Committee (SC) ........................................................................................................................................................... 9
2.1.3. Project Management and Support Unit (PMSU) ...................................................................................................................... 10
2.1.4. Final Beneficiaries .................................................................................................................................................................... 10
2.1.5. Sub-Project Implementation Unit (PIU) .................................................................................................................................... 10
2.1.6. Staff provision for PMSU and PIU ............................................................................................................................................ 11
2.2 Sub-Project cycle ............................................................................................................................................................................. 13
2.3 Data management ........................................................................................................................................................................... 14
2.3.1 General requirements ............................................................................................................................................................... 14
2.3.2 Soft copy Policy ......................................................................................................................................................................... 15
2.3.3. Hard Copy, Filing and Archiving Policy .................................................................................................................................... 15
2.3.4 E-mail subject and Project reference Policy ............................................................................................................................. 16
3 Funding and allocation ........................................................................................................................................................................... 16
3.1 Investment financing ........................................................................................................................................................................ 16
3.2 Terms and conditions of EIB loan .................................................................................................................................................... 16
3.3 Eligibility criteria ............................................................................................................................................................................... 17
3.3.1. General criteria ......................................................................................................................................................................... 17
3.3.2. Eligible UUPTP and sub-projects costs ................................................................................................................................... 18
3.3.3 Purchase of new rolling stock (trolleybuses, trams, metro coaches and buses) ...................................................................... 19
3.3.4. Capital rehabilitation of rolling stock......................................................................................................................................... 19
3.3.5. Infrastructure Rehabilitation – tracks, catenaries, depots, stations ......................................................................................... 19
3.3.6. Infrastructure development – new tram tracks, catenaries, depots, stations, supply and installation of information and ticket
collection systems .............................................................................................................................................................................. 20
3.3.7. Services for planning, design, supervision, and monitoring of the above activities ................................................................. 20
3.3.8. Services for Technical assistance to each city’s Authorities .................................................................................................... 20
3.4 Sub-project preparation ................................................................................................................................................................... 21
3.5 Allocation Procedures ...................................................................................................................................................................... 21
3.6 Financing plan for the sub-projects .................................................................................................................................................. 22
4 Project implementation ........................................................................................................................................................................... 23

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 4.1 Sub-project implementation ............................................................................................................................................................. 23
4.2 Sub-Project Implementation Reporting ............................................................................................................................................ 24
4.3 Preparation of design documents and tender dossiers for works/supplies/services ....................................................................... 24
4.4 Tendering of supplies, services and works ...................................................................................................................................... 25
4.5 Rolling Stock, tracks, depots, stations, works and IT supervision ................................................................................................... 25
4.6 Sub-Projects progress monitoring ................................................................................................................................................... 25
4.7 Budget and variations management ................................................................................................................................................ 26
4.8 Experts ............................................................................................................................................................................................. 26
5 Technical assistance (TA) support ......................................................................................................................................................... 27
5.1 Funding of technical assistance support .......................................................................................................................................... 27
5.2 Delivery of technical assistance ....................................................................................................................................................... 27
5.3 Types of technical assistance .......................................................................................................................................................... 28
5.3.1 Support to PMSU ...................................................................................................................................................................... 28
5.3.2 Support to PIU ........................................................................................................................................................................... 28
5.3.3 Project preparation .................................................................................................................................................................... 28
5.3.4 Project implementation .............................................................................................................................................................. 28
5.4 Requesting technical assistance support ........................................................................................................................................ 28
5.5 Management of technical assistance ............................................................................................................................................... 28
5.6 TA Procurement ............................................................................................................................................................................... 28
6 Financial management ........................................................................................................................................................................... 29
6.1 Loan Fund Transfer Agreement ....................................................................................................................................................... 29
6.1.1 Mandatory conditions and provisions of Loan Fund Transfer Agreements .............................................................................. 29
6.2 The Loan Disbursement Procedure ................................................................................................................................................. 30
6.2.1. Preparation of Loan Disbursement Requests and Disbursement Schedule and Conditions Precedent to the Disbursement31
6.2.2. Disbursement Offer .................................................................................................................................................................. 32
6.2.3. Disbursement Acceptance and Loan Tranche Payment.......................................................................................................... 32
6.2.4. Opening of EUR Collection Account and sub-project Accounts .............................................................................................. 33
6.2.5. Payment procedure .................................................................................................................................................................. 34
7 Procurement of supplies, works and services ........................................................................................................................................ 36
7.1 Types of procurement procedures and contracts ............................................................................................................................ 36
7.2 Particular Procurement requirements .............................................................................................................................................. 37
7.2.1 EIB requirements....................................................................................................................................................................... 37
7.2.2 Tender documents .................................................................................................................................................................... 38
7.2.3 Tender evaluation criteria .......................................................................................................................................................... 38
7.2.4 Packaging of sub-projects ......................................................................................................................................................... 39
7.2.5 Tender and contract guarantees ............................................................................................................................................... 39
7.2.6 Rejection of bids ........................................................................................................................................................................ 39
7.2.7 Cancellation of tender procedures ............................................................................................................................................ 40
7.2.8 Tender evaluation mechanism .................................................................................................................................................. 40

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8 Project controlling mechanisms .............................................................................................................................................................. 42
9 Monitoring and reporting......................................................................................................................................................................... 44
9.1 Sub-projects monitoring/reporting .................................................................................................................................................... 44
9.2 Financial monitoring/reporting ......................................................................................................................................................... 44
9.2.1. Structure and responsibilities ................................................................................................................................................... 44
9.2.2. Planning and budgeting ........................................................................................................................................................... 44
9.2.3. Preparation, processing and controlling of payment orders and supplementing documents .................................................. 46
9.2.4. Reporting .................................................................................................................................................................................. 46
9.2.5. Audit of Programme Accounts ................................................................................................................................................. 48

Annex 1. Project Management Support Unit

Annex 2. Conditions of disbursement under the EIB Finance Contract
Annex 3. Request for TA support template
Annex 4. Sample of Procurement Plan for a sub-project
Annex 5. Statement of expenditure template
Annex 6. Covenant of Integrity
Annex 7. Standard notification letters and documents
Annex 8. Distribution of rights and responsibilities of key stakeholders under UUPTP
Annex 9. UUPTP monitoring
Annex 10. EIB Guide to Procurement
Annex 11:
- Register on the remnants of general and special funds of the state (local) budget on registration (special
registration), other accounts opened in the bodies of the State Treasury Service of Ukraine, and current accounts
opened at banks' institutions;
- Certificate on Foreign currency balances, located on current accounts opened in institutions of banks;
- Certificate on foreign currency balances on current accounts opened at banks' institutions
- Certificate on the balance of funds on other current accounts in banks' institutions;
- Report on receipt and use of other receipts of the special fund

Annex 12 Certificate on the use of loans from foreign countries, Banks and international financial organizations for the
implementation of investment projects.

Annex 13 Report on Servicing and Repayment of a sub-loan by Final Beneficiary, of the Loan by the Borrower, on a
cumulative basis (based on table 1-1 of the MoF of Ukraine Order 07/14/2016, No. 616)

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Abbreviations
CoM Cabinet of Ministers of Ukraine
DBN State Construction Norms (from Ukrainian “DerzhavniBudivelniNormy”)
EC European Commission
EIB / the Bank European Investment Bank
EPTATF Eastern Partnership Technical Assistance Trust Fund
ESIA Environmental and Social Impact Assessment
EU European Union
FIDIC Fédération Internationale Des Ingénieurs – Conseils (from French, the International
Federation of Consulting Engineers)
FS Feasibility Study
FTE Full time employee
IFI International Financial Institution
IMF International Monetary Fund
ICB International Competitive Bidding
MoF Ministry of Finance of Ukraine
MoI Ministry of Infrastructures of Ukraine
MPSF Municipal Project Support Facility
NCB National Competitive Bidding
NIF Neighbourhood Investment Facility
PIU Project Implementation Unit
PMSU Project Management and Support Unit
PPM Project Procedures Manual
SC Steering Committee
SG Steering Group
SPBT Simple pay-back time
TA Technical Assistance
ToR Terms of Reference
UAH Ukrainian Hryvnia
UUPTP Ukraine Urban Public Transport Project

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 1 Introduction
1.1 The Ukraine Urban Public Transport Project (UUPTP)

The Ukraine Urban Public Transport Project (UUPTP) aims at modernising urban public transport rolling stock and related
infrastructure projects in medium and large municipalities of the country. It is implemented by the Ministry of
Infrastructure of Ukraine (MoI).
The European Investment Bank entered into a Finance Contract with Ukraine on 11th November 2016 to provide a
framework loan of EUR 200 million to support the implementation of the UUPTP. The Ukrainian Parliament ratified the
Finance Contract on 12th April, 2017 which entered into force on the 11th May 2017.
The UUPTP will support the implementation of urban public transport schemes in around 20 medium to large size
municipalities in Ukraine that aim at purchasing new rolling stock (trolleybuses, trams, metro coaches and buses),
rehabilitating the existing transport infrastructure and extending it with new elements of transport infrastructure. The
UUPTP will comprise multiple public urban transport Sub-projects of various sizes between EUR 1m to 50m. The Final
Beneficiaries will be city councils and/or passenger transport companies or enterprises owned by a city or city community.
The ultimate goal of the UUPTP is to support the development of reliable, sustainable, safe and environmentally friendly
passenger transportation services.
The Bank will limit its support to schemes/sub-projects in the areas under control of the Government of Ukraine.
The Annex A to the Finance Contract provides a non-exhaustive list of sub-projects that may be eligible for this framework
lending facility.
The PPM is prepared and approved in English. A Ukrainian translation of the PPM will be provided. In case of conflict
between the English version and its Ukrainian translation, the provisions of the English version shall prevail.
1.2 Purpose and structure of the manual

The purpose of this Project Procedures Manual (PPM) is to establish the framework of policies, processes, procedures and
rules for UUPTP both with regard to the UUPT Project and the sub-projects and to rights and responsibilities of key
UUPTP stakeholders and bodies.
The Borrower, the Promoter and EIB recognise that the establishment of and adherence to the PPM is one of the key
components for the successful implementation of the UUPTP. The PPM is approved by the MoI in form and substance
satisfactory to the EIB, endorsed by the Steering Committee and is a condition precedent to the first disbursement under the
Finance Contract.
The PPM shall govern the project execution both at UUPTP and Sub-project level, and Final Beneficiaries are bound to
abide to the relevant provisions herein. In the event there is any conflict between the Finance Contract and this manual, the
provisions of the Finance Contract shall prevail.

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 1.3 Definitions

Project and project definitions and abbreviations are listed below.

Definitions
Borrower Ukraine acting through the Ministry of Finance of Ukraine, in conjunction with the Ministry of
Infrastructure of Ukraine or its legal successor
Contracting The entity that signs for works, supply or service contracts for sub-projects under UUPTP. This
authority (CA) can be a Municipal company separately or jointly owned by city or city community.
Final Beneficiary The Final Beneficiaries are city councils and/or passenger transport companies or enterprises
owned by city communities responsible for implementing a sub-project under UUPTP. They are
the co-signatories of the Loan Fund Transfer Agreements, have responsibility for the
implementation of sub-projects and are therefore the responsible entity for the repayment of the
loan to the MoF.
Loan Fund The Borrower, acting through the Ministry of Finance of Ukraine, in conjunction with the
Transfer Ministry of Infrastructure of Ukraine and, if necessary, the relevant city council, shall make the
Agreement EIB Loan available to each Final Beneficiary pursuant to a loan fund transfer agreement to be
entered into between, among others, the Ministry of Finance, the Ministry of Infrastructure, the
relevant Final Beneficiary and, if applicable, the relevant city council.
Project The Ukraine Urban Public Transport Project (UUPTP). In the EIB Finance Contract referred to as
the Project.
Project The unit within the MoI responsible for Project management, coordination, monitoring and
Management and control. The PMSU will comprise MoI staff or staff working on behalf of MoI.
Support Unit
(PMSU)
Project The Deputy Minister of MoI who has ultimate responsibility for implementation of the Project.
Coordinator
Project Manager The MoI staff appointed as full time coordinator of the Project with responsibility and
accountability for the proper staffing and functioning of the PMSU and the successful
implementation of the Project.
Sub-Project A project at Final Beneficiary level prepared and implemented under UUPTP. In the EIB Finance
Contract referred to as sub-project.
Sub-Project The Head of the PIU authorized to ensure organization, supervision and monitoring of sub-project
Manager preparation and implementation and signature of documents associated with sub-project
preparation and implementation. The Sub-Project Manager bears personal responsibility for the
sub-project preparation and implementation.
Project The unit responsible for preparation and implementation of a sub-project on behalf of the Final
Implementation Beneficiary. The PIU should have a Head/Manager/Director of PIU.
Unit (PIU)
Promoter The UUPTP promoter is the MoI.

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 1.4 Procedure for updating the manual

The PPM will be prepared and updated by the Project Management and Support Unit (PMSU). It will be a living document
that will evolve in parallel to the progress of the UUPTP. The PPM will thus be updated in response to perceived needs
under the Project. Any adjustments or changes will be subject to strict updating and dissemination mechanisms to ensure
that the PPM can serve as common and reliable rulebook for all Project stakeholders.
The PPM shall not be amended, suspended, abrogated, repealed and no provision of the PPM can be waived, without the
prior approval of EIB.
In the event the PPM itself or rules and procedures described herein have to be amended and/or supplemented, the said
amendments or additions shall be made by way of a repeated endorsement of the entire PPM agreed by minutes of the
Steering Committee.
In case of revisions to the PPM, changes have to be submitted to EIB for approval in the format of a comparative table
highlighting the original and the revised text.
The PPM shall take effect as of the date of its endorsement by the Steering Committee after receiving a ‘no-comments’
from the EIB to the proposed changes.
The title page of the revised PPM shall bear its ordinal number (1, 2, 3, etc.) of revision and the new version’s date, with
the date of the PPM’s new version agreed and documented in the minutes of the Steering Committee.
After PPM endorsement by the Steering Committee, the PMSU should send the revised version to all PIUs by e-mail and
be published on the MoI official website.

2 Project structure and set-up

2.1 Project stakeholders and bodies

2.1.1. Ministry of Infrastructures of Ukraine (MoI)
The Ministry of Infrastructures of Ukraine (MoI) is a sector line ministry responsible for formulating and implementing the
state policy in the fields of road, rail, sea, river, air, and urban electric transport, as well as on issues related to the use of
Ukrainian airspace, subway systems, roads, postal services, transportation safety, merchant shipping and
navigational/hydrographic support for vessels. It is participating, within the limits of its authority, in the formulation and
implementation of state tariff policies and public procurement policies in the postal service field. The main priority of the
MoI is now bringing the Ukrainian transportation sector and infrastructure to a European level.

The MoI will oversee the implementation of the sub-projects. This includes project preparation, supervision, monitoring
and evaluation as well as the review of the evaluation results of sub-projects. Accordingly, MoI will carry out such
functions for this UUPTP.

The MoI shall appoint a Project Coordinator with overall responsibility for effective and efficient implementation of the
Project. MoI shall also appoint a Project Manager that will head the PMSU and together with the PMSU staff support the

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organization, supervision and monitoring of sub-project preparation and implementation under UUPTP, including timely
signature of documents associated with project and sub-projects preparation and implementation.

2.1.2. Ministry of Finance (MoF)

The Ministry of Finance of Ukraine (MoF),as the central financial government body, in line with its competencies as per
Ukrainian legislation, will coordinate all financial aspects of the UUPTP.

MoF will be involved in the approval of sub-projects considering creditworthiness of the Final Beneficiaries according to
the Ukrainian legislation (as to date Resolution No.616 of the Ministry of Finance of Ukraine from July 14, 2016 (for
utilities), Resolution No.110 of the Cabinet of Ministers of Ukraine from February 16, 2011 or Resolution No.541 of the
Cabinet of Ministers of Ukraine from 14 May 2012 (for municipalities) or any other procedures that would replace/adjust
these procedures in legal force.

2.1.3. Steering Committee (SC)

The SC will have members from the following stakeholders:

- Ministry of Infrastructure, who will chair the SC, maximum 4 voting members (one, the Chairperson with two
votes, the others with one vote each) and other experts from the MoI or from other contracted consultancy
company;
- Ministry of Finances, maximum 4 voting members (each with one vote) and other experts from the MoF;
- PMSU (represented by the Project Manager and any other experts as necessary),
- and other stakeholders, where appropriate and subject to the prior agreement of the MoI, MoF and EIB.

EIB will participate in SC meetings as an observer.

The SC for the UUPTP will be responsible for high level Project management and supervision and ensure the progress is
being made towards achieving of the Project goals and objectives according to the terms, condition and procedures of the
Finance Contract signed between EIB and Ukraine.
The SC is responsible and accountable for:
 supporting the Project through top-level commitment to provide and maintain human and technical resources
required for appropriate administration of the Project implementation;
 approving Project organisation structure;
 facilitating and reviewing the functioning of the PMSU, including ensuring that it is adequately staffed;
 acknowledging the appointment of the Project Manager (PM) who will be accountable for the success of the Project
(the PM is a member of the Steering Committee);
 making strategic recommendations on Project procedures, including endorsing the Project Procedures Manual;
 endorsing sub-project proposals presented by the PMSU for allocation request for funding is submitted to EIB and
other funding entities;
 endorsing sub-projects for signature of Loan Fund Transfer Agreements;
 monitoring and facilitating efforts made to secure funding, including investment grants;

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  resolving strategic issues;
 monitoring Project and sub-projects progress and budgets;
 authorizing closure of the Project.

The SC shall be appointed by MoI. Any changes to the composition of the SC must be communicated immediately to EIB
by official letter from the MoI. The SC meetings are called by the PMSU. All members of the SC and EIB participants
should be given 5 working days’ notice before SC meetings.
The SC should meet at the start to authorise the launch of the Project, on, at least, a quarterly basis thereafter, and at the end
to approve the closure of the Project. Formal minutes should be prepared by the Project Manager and adopted for each
meeting, with details of any proposals made and decisions taken and signed by all voting members of the SC. In urgent
cases the SC can make decision by written procedure. In this case all members with voting rights have to send their votes
and clarification letter to the PMSU within 5 working days after the receipt of minutes of the relevant SC.

2.1.3. Project Management and Support Unit (PMSU)

The Project Management and Support Unit (PMSU) is the entity for Project management and support. Further information
about the PMSU role, tasks and responsibilities and members are presented in Annex 1.

2.1.4. Final Beneficiaries

The Final Beneficiary is a city council and/or passenger transport company or enterprise owned by city communities
responsible for implementing a sub-project under UUPTP. The Final beneficiary is a co-signer of a Loan Fund Transfer
Agreement (LFTA) for the funding of a sub-project under the UUPTP and therefore the responsible entity for repayment of
the loan to the MoF according to LFTA.

2.1.5. Sub-Project Implementation Unit (PIU)

The PIU will be created by each Final Beneficiary and assume responsibility for the planning, preparation, implementation,
project and financial management, as well as the monitoring of the sub-project on behalf of the Final Beneficiary.
The general organisational chart is presented in the figure 1 below.

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 Figure 1: General Organisational Chart

2.1.6. Staff provision for PMSU and PIU

The PMSU shall be located within the MoI. The staff of the PMSU will be provided by the MoI and will consist of the MoI
employees from relevant departments (the Planning, Finance, Road and rail transport, Legal and International Cooperation
Departments), funded by the MoI. MoI will also nominate a UUPTP Project Manager from the MoI staff that will be
responsible for management and coordination of the PMSU activities on a day-to-day basis and for a successful
implementation of the Project. The Project Manager will report to the Steering Committee, to the MoI Project Coordinator,
and to EIB if requested.
The PMSU will be supported by an expert consultant team to reinforce its capacity to effectively and efficiently coordinate
the Project implementation. The external consultancy will be funded from:
 Technical assistance (TA) funds coming from donors (secured and contracted by EIB) and/or;
 Any other resources including loan proceeds,(in this case contracted by the relevant entity).

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A balanced approach towards assigning long and short-term professional personnel, of various specialist areas (engineers,
economists, finance managers, operational specialists, other) will be employed to address individual project needs. It is
noted that the existence of the PMSU, in form and substance satisfactory to the Bank is a condition precedent to the first
disbursement under the Finance Contract.
The composition of the PMSU is described further in Annex 1.
A PIU will be created at the level of the final beneficiary for each Sub-project or for each group of sub-projects of the same
final beneficiary under UUPTP. The PIUs will be responsible for preparation and implementation activities at the Sub-
project level, including:
 Preparation of Sub-project documentation;
 Sub-project administration and sub-project progress monitoring and reporting;
 Environmental and social assessment requirements;
 Preparation of technical specifications and tender documents, service contracts;
 Preparation of Terms of Reference for consultant tenders;
 Preparation or supervision of preparation of tender documents for works and supplies of the related sub-project;
 Provision of answers and technical clarifications during the tender period;
 Organisation of site visits and clarification meetings with tenderers;
 Leading procurement process according to the EIB guidelines;
 Management of tender evaluation and contract awards;
 Monitoring of physical works and ensuring that the quality of construction works is in full compliance with best
practice construction standards and that the progress of construction works is recorded in the construction site
record books;
 Financial management, accountant management (cash flow), management of payments;
 Reporting in compliance with actual regulations and contracts;
 Archiving records of all documents and communications and support audits;
 Attending all regular weekly and monthly meetings;
 Preparation of progress reports for sub-projects;
 Monitoring and evaluation;
 Sub-Project Accounting;
 Management of payments;
 Carrying out Communication Measures in consultation with the PMSU and EIB;

The PIUs will be supported in these efforts by the PMSU and by experts from TA consultants. The responsibility for
construction supervision rests with a Supervising Engineer licensed Consultancy Company or a group of licensed
engineers, who will act on behalf of a Contracting authority in its capacity as Employer (i.e. the Final Beneficiary).

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The Final Beneficiary will determine the most suitable and operational PIU structure and staffing to match the sub-project
needs. A PIU will generally consist of: a Sub-project manager/coordinator, a procurement specialist(s), sector engineer(s),
and a financial management specialist. For large Sub-projects these experts are expected to dedicate 100% of their time to
the PIU and Sub-projects. The Final Beneficiary PIU at its own discretion may involve other personnel in the PIU as
needed taking into account the volume and nature of tasks set for the PIU. For large sub-project(s), the PIU may be
supported by a separate external consultant team.
Implementation of sub-projects under UUPTP will require appointment of sub-project Managers. This position will
generally be fulfilled by the PIU manager or a suitably qualified and experienced member of the PIU staff if justified and
agreed by the PMSU.

2.2 Sub-Project cycle

The sub-project cycle will have to correspond to the effective national legislation – to date the CoM Resolution No.70 -
“On preparation, implementation, monitoring and completion of economic and social development projects of Ukraine
supported by IFIs”. The main steps in the project cycle under the UUPTP are presented in the illustration below:

1 Sub-Project preparation
Feasibility studies, ESIA, Procurement/financing plan, TA provided by the project

2 Sub-Project appraisal and allocation

Allocation request of sub-project under EIB loan; loan fund transfer agreement with Final Beneficiary

3 Sub-Project implementation
Preparation of tender documents, designs, technical specifications; Procurement for supplies and works; delivery of
supplies and construction; disbursement under EIB loan; payment to sub-project; fulfilment of conditions to loan
disbursements.

4 Sub-Project Completion
Monitoring and verification of sub-project outputs and outcomes

For works contracts, the sub-project development process according to the Ukrainian standard DBN A.2.2-3:2014 is
presented below.

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Process according to DBN A.2.2-3: 2014 for projects classified CC 2 and CC 3 (Law No.1817-VIII of 17th January 2017)

Tender for P Phase Tender for Construction phase

Technical and P Working Project

Economical General Technical (detailed technical
Justification Design design)

Requires: Requires :
 Approval from State  Approval from State
Expertise Construction phase
Expertise (CMU
 No objection from: Procedure 560)
- МoI - Approval from the
- Ministry of Finance MoI / Local
authorities

Allows for the signature of the Allows for obtaining the construction
Loan Fund Transfer permit from State Local Architecture
Agreement according to CoM Authority
Resolution 70

2.3 Data management

2.3.1 General requirements
All correspondence of strategic importance within UUPTP on behalf of the MoI shall be endorsed by the Project
Coordinator or Project Manager and on behalf of each PIU by the respective Head/Manager/Director of PIU.
All outgoing documents shall be subject to registration in a special logbook, with attachment of an appropriate reference
number in the office of the PMSU or PIU. In case the attachment is too large in terms of number of pages reference to
location of the hardcopy shall be indicated.
All incoming documents under the project shall be subject of obligatory registration. The registration shall be done by the
office or assigned officer of, PMSU or PIU, through attachment of an incoming reference number and making a relevant
log in the incoming documents registers.
The incoming document shall be forwarded to the addressee. A copy of this document shall be filed in a specified folder,
assigned for such type of documentation.

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In case it is impossible to identify the person to whom the incoming document has been addressed, it shall be forwarded for
consideration to the Project Manager, and in the case of a PIU to the Sub-Project Manager, for consequent decision and
action.
All official communication between EIB and the UUPTP participants shall be done in English.

2.3.2 Soft copy Policy

Project-related correspondence shall to the extent possible be carried out via e-mail. Electronic correspondence within
UUPTP shall be considered official, as well as official hard-copy letter exchange, carried-out by post.
All official correspondence shall be carried out from one e-mail account/address (e.g. PMSU Office e-mail address/ PMSU
Project Manager from MoI), while other personnel’s e-mail addresses shall be put in copy, as need may occur.
For this purpose, each PIU creates and uses one generic electronic mail address, or an existing e-mail address shall be used
to this effect. The e-mail account should have no limitations on the number of addressees in one communication or limited
capacity for attached files.
In communication with EIB, any such communication shall be sent to the PMSU Project Manager in CC, additionally in
the event the letter shall concern procurement, it will be also CCed to the Procurement Specialist of PMSU, should that
concern financial issues the e-mail will be also CCed to the Financial Management Specialist of PMSU etc.
In reply to communications from EIB, or other incoming electronic letter, the reply shall be directed to the original sender
and a copy of the reply shall be sent to all officers CCed in the original letter.
All data in electronic form shall be kept on UUPTP PMSU server with a back-up copy created on a weekly basis.

2.3.3. Hard Copy, Filing and Archiving Policy

The PMSU Project coordinator and the PIU manager are responsible for establishing and adhering to filing and archival
procedures.
Along with electronic correspondence exchange of hard-copy documents is allowed and shall be considered official.
The basic requirements to document flow are the following:
(i) All documents shall be kept in hard (paper-based) copies, filed in folders/files. Prior to filing documents for
storage, they must be stapled to avoid loss of their separate parts.
(ii) Documents shall be stored as to the category/transaction/operation they pertain to. In other words, documents
pertaining to one transaction shall be filed in one folder.
(iii) Documents will be separated if they belong to different operations while kept in one file. This affords to
promptly ascertain that all documents belonging to one operation are in place, as well as add new documents as
need may occur.
(iv) In the event, the same document belongs to different operations, it will be copied and its copies shall be filed
together with other documents within respective operations.
(v) In the case of impossibility to place the document in the relevant file (owing to its size); it will need to file a
sheet of paper in the relevant place within the folder with a reference to the location of the documents original.

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 (vi) The term of document storage shall be established by current legislation and MoI internal rules of procedure, or
those of relevant PIU, but not less than the period of UUPTP implementation.
(vii) Working documents shall not be taken out of the office without Project Coordinator or PMSU Project Manager
Authorisation. In the cases of a PIU without Director or Head of PIU consent.
(viii) All rough copies or spoilt documents will be subject to destruction through shredder.
.

2.3.4 E-mail subject and Project reference Policy

In each communication, the “subject” line can’t be left empty and must be written in English and have the following
format:
UUPTP: name of city: bidding title: tender’s ref. #: estimated cost: action required,
or
UUPTP: name of city: regarding: action required
The name of the tender and its reference number can be found in the approved Procurement Plan. In the “action required”
there will be brief description as to actions required from the recipient, e.g. request for ‘no-objection’ to or review of
bidding documents, bid evaluation reports or Procurement Plans.

3 Funding and allocation

3.1 Investment financing

EIB has entered into a finance contract with Ukraine for a framework loan of up to EUR 200m to the UUPTP to finance
both already identified sub-projects and sub-projects and components that may be selected in the future. The loan is
provided to Ukraine acting through the Ministry of Finance in conjunction with MoI, who will channel the loan proceeds to
final beneficiaries under Loan Fund Transfer Agreements (see Section 6.1 and 6.2 below).
EIB loan financing can finance up to 50% of the Total Project Cost of all investments included under UUPTP (of the
expected total project cost of EUR 400m). For the avoidance of doubt, this means that for a given sub-project, EIB may
finance more than 50% of the sub-project’s total project cost provided that, on the Programme level, EIB financing equals
to 50% of the total project cost of all sub-projects combined. If the EIB covers the financing of the subproject by less than
100%, the Final Beneficiary shall ensure the availability of missing funds.

3.2 Terms and conditions of EIB loan

The allocation period of sub-projects under the EIB Finance Contract matches the duration of the Project: 5 years after the
date of effectiveness of the Finance Contract, i.e. 11th May 2022.
The availability period for disbursements under the EIB Finance Contract is until the date falling 6 years after the date of
effectiveness of the Finance Contract, i.e. 11th May 2023. This date may be extended upon an agreement to be reached
between Ukraine and the EIB.

16
The grace period is the period during which principal repayments do not have to be made, can be up to 5 years from the
date of the respective tranche..
The maturity of the EIB loan under the Finance Contract will be up to a maximum of 22 years including the grace period..
3.3 Eligibility criteria
3.3.1. General criteria
The Loan shall be allocated to Sub-Projects according to their size in line with the Bank’s applicable procedures:
(a) Each eligible Sub-Project with a total investment cost below EUR 25 million shall be subject to ex-post
confirmation of eligibility by the Bank. The Borrower shall submit an Allocation Request in a form prescribed by the PPM.
(b) Each eligible Sub-Project with a total investment cost of EUR 25 million or more but less than EUR 50 million shall
be submitted ex-ante to the Bank for approval before disbursement of the Loan to the Borrower using a pro-forma
prescribed by the PPM. The Bank shall have the right to request the Borrower to provide additional information. Partial or
full appraisal of the Sub-Project may be undertaken by the Bank, if deemed necessary.
(c) Each eligible Sub-Project with a total investment cost of EUR 50 million or above shall be treated as a separate loan
and appraised separately by the Bank. Such Sub-Projects shall be subject to the Bank’s approval before disbursement of the
Loan to the Borrower. The Borrower shall provide documentation as may be requested by the Bank at its discretion. A Sub-
Project requiring separate appraisal may be subject to additional conditions to be agreed with the Borrower and, as
applicable, the relevant Final Beneficiary.
Sectors eligible under the UUPTP are:
 Purchase of new rolling stock (trolleybuses, trams, metro coaches and buses);
 Capital rehabilitation of rolling stock;
 Infrastructure rehabilitation – tracks, catenaries, depots, stations;
 Infrastructure development – new tram tracks, catenaries, depots, stations, supply and installation of information
and ticket collection systems;
 Services for planning, design, supervision and monitoring of above activities;
 Services for technical assistance to city authorities and the PMSU
Final Beneficiaries eligible under the UUPTP are:
City councils and/or transport passenger companies and enterprises owned by city communities will be eligible for the
sub-project if they fulfil the following two criteria:
a) population of above 200,000 as determined at last census; and
b) City public transport fleet of at least 50 units in aggregate (including trams, metro coaches, trolleybuses and
buses).

Infrastructures, services and supplies investments eligible for EIB financing under the UUPTP:

 shall be located in Ukraine government controlled areas;

 shall consist of coherent and clearly defined capital investments needed for the realisation of a sub-project,
comprising all elements of a permanent nature (whether tangible or intangible) that are necessary for the sustainable

17
 production of goods or services that the sub-project is designed to deliver (pure financial transactions are not
eligible);
 shall be procured in accordance with EIB’s Guide to Procurement and the basic principles of the EU procurement
Directives 2014/24/EU and 2014/25/EU) shall respect requirements for publication in the Official Journal of the EU
(OJEU), if applicable;
 must comply with the following minimum requirements with respect to environmental legislation and information
access:
 shall be carried out in accordance with the basic principles of Directives 79/409/EC (Birds); 85/337/EC
(Environmental Impact Assessment) as amended; 92/43/EC (Habitats), 96/11/EC (IPPC) and 2001/80/EC (Large
Combustion Plants) where applicable; the EIB Environmental and Social Standards in the latest version of EIB’s
Environmental and Social Handbook1.

Sub-projects eligible under UUPTP must comply with the EIB’s applicable policies and guidelines, i.e. notably be
economically justified, technically viable, financially self-supporting, environmentally sound and procured using the
appropriate procedures that conform to the EIB Guide to Procurement and to provisions in the PPM. This will be verified
during the EIB due diligence procedure.

Although not being eligibility criteria for sub-projects, the Finance Contract between Ukraine and the EIB stipulates that
before the completion of the proposed sub-project, each Final Beneficiary (Municipality) should have prepared and
approved a Sustainable Urban Mobility Plan (SUMP) in form and substance satisfactory to the Bank. This PPM forecast
such SUMP to be available three years after the entry into force of the mentioned Finance Contract.
As well, prior to the completion of the relevant Sub-Project, each Final Beneficiary (transport company or enterprise)
should enter into a contract (Public Service Contract – PSC) for the provision of city passenger transport services with the
relevant transport authority reflecting the requirements of the Regulation No 1370/2007 regarding financial and
organisational management of land passenger transport and otherwise in form and substance satisfactory to the Bank. This
PPM forecast such PSC to be available up to four years after the entry into force of the mentioned Finance Contract.

3.3.2. Eligible UUPTP and sub-projects costs

All Project and sub-projects costs, including studies, designs etc. are eligible for EIB funding except:
 VAT and other taxes and duties,
 Land acquisition,
 Purchase of buildings,
 Maintenance and other operating costs,
 Acquisition of second-hand assets,
 Interest during construction,

1
http://www.eib.org/attachments/strategies/environmental_and_social_practices_handbook_en.pdf

18
  Purchase of licences for the use of non-generated public resources (e.g. telecom licences),
 Patents, brands and trademarks,
 Pure financial transactions.

3.3.3 Purchase of new rolling stock (trolleybuses, trams, metro coaches and buses)
Specific eligibility criteria for purchase of rolling stock projects are listed below.

 New items;
 More energy efficient than the rolling stock they will replace;
 In line with the national legal requirements regarding the access facilitation for persons with disabilities;
 To be used on lines or routes consistent with the City transport scheme;
 Eligible sub-projects must be defined on the basis of a feasibility study (option analysis, cost-benefit analysis,
financial analysis, other) carried out in line with a standard acceptable to EIB.
 Other criteria agreed with EIB.

3.3.4. Capital rehabilitation of rolling stock

Specific eligibility criteria for Capital rehabilitation of rolling stock sub-projects are listed below.
 The rehabilitation of existing systems or equipment, provided that the renovation is economically justified, in
comparison with the cost of new similar items, meet social needs and quality requirements;
 The rehabilitation should guarantee, after completion, a 12 years life span for the rehabilitated equipment;
 To be used on lines or routes that are consistent with the City transport scheme;
 Eligible projects must be defined on the basis of a feasibility study (option analysis, cost-benefit analysis, financial
analysis, other) carried out in line with a standard acceptable to EIB.
 Other criteria agreed with EIB.

3.3.5. Infrastructure Rehabilitation – tracks, catenaries, depots, stations

Specific eligibility criteria for rehabilitation projects are listed below:
 Rehabilitation of tracks, depots, stations, for tramways, buses, trolleybus will put them in line and technical
conformity with the new transport equipment to be used (operations, storage, maintenance, fleet management etc);
 Rehabilitated systems should bring added value to the local passengers transport network and meet social needs;
 Renovated electrical systems (catenaries, trolleybus wires, substations) shall meet the national minimum energy
performance requirements;
 Eligible projects must be defined on the basis of a feasibility study (option analysis, cost-benefit analysis, financial
analysis, other) carried out in line with a standard acceptable to EIB.
 Environmental and Social Impact Assessment (ESIA) has to be prepared by the Final Beneficiary and has to be
satisfactory to the EIB.
 Other criteria agreed with EIB.

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3.3.6. Infrastructure development – new tram tracks, catenaries, depots, stations, supply and installation of
information and ticket collection systems
Specific eligibility criteria for new infrastructure sub-projects are listed below:
 new tram tracks, which can include extension of tram line subject to the compatibility and consistency with the City
transport/land use scheme,
 subsequent depots, stations, catenaries, overhead wires;
 supply and installation of information and ticket collection systems, including notably
- Fare media devices to read/write media
- Depot/station computers;
- Back office systems;
- Central clearing house

 The new infrastructure and/or systems should bring added value to the local passengers transport network (meeting
social needs, allowing better passengers modal split, reducing distances to public transport, reduction of CO2
emission, modal shift);
 Eligible projects must be defined on the basis of a feasibility study (option analysis, cost-benefit analysis, financial
analysis, other) carried out in line with a standard acceptable to EIB.
 Other criteria agreed with EIB
.

3.3.7. Services for planning, design, supervision, and monitoring of the above activities
Short term services are subject to ex-ante approval with a minimum contract value of EUR 200.000:
TA for the above mentioned activities related to each sub-project or package of sub-projects is available, following
Beneficiaries request, subject to the prior approval of the EIB (Terms of reference, tender procedure and contracting,
monitoring).

3.3.8. Services for Technical assistance to each city’s Authorities

Short term services subject to ex-ante approval with a minimum project size of EUR 200.000 (a project can comprise
several of the items listed below):
TA for the above mentioned activities related to each sub-project or package of sub-projects implementation (PIU level)
will be available, following Beneficiaries request, subject to the prior approval of the EIB (Terms of reference, tender
procedure and contracting, monitoring).
The following topics are eligible:
 Project appraisal;
 Technical specifications;
 Tender procedure support;

20
 Works and contracts implementation monitoring;
 Evaluation.

3.4 Sub-project preparation

The preparation phase will aim at reaching bankability and technical feasibility of the sub-projects.
The PIU is responsible for preparation of sub-projects on behalf of the Final Beneficiary. Sub-projects will be prepared
with Final Beneficiary’s’ own resources and/or with the support of TA. In case a TA support is required, the Final
Beneficiary will have to present a TA request to the PMSU. All TA requests will be analysed by the PMSU, endorsed by
SC (if financed out of EIB Loan) and submitted for approval to the EIB.
Preparation of a sub-project will generally comprise preparation of a feasibility study, which should include but is not
limited to demand analysis, options analysis, cost benefit analysis, conceptual designs, cost estimates, cost benefit analysis,
financial analysis, sub-project implementation and procurement plans. Environmental and Social Impact Analyses (ESIA)
if applicable and other relevant studies must also be prepared, where applicable.
For sub-projects implying conceptual designs, in case of conflict between Ukrainian Standards/Laws and EIB guides/EU
Directives, the more demanding provisions should in general apply. For exceptions to this rule, PMSU consent must be
sought and justified.
The preparation of a sub-project also comprises securing of all required permits and consents. Any payments to the local
authorities related to the issuing of permits, commissioning and registering after completion etc. required by Ukrainian Law
shall be borne by the Final Beneficiary.

3.5 Allocation Procedures

Conditions that must be met prior to allocation of EIB’s funds to a sub-project under the Project are listed below:
 Sub-projects must be endorsed by the Steering Committee;
 Final Beneficiaries need to establish and adequately staff a sub-project Implementation Unit (PIU);
 Sufficient information on the sub-project to enable EIB to carry out due diligence shall be provided to the
satisfaction of EIB;
 If necessary, Technical Assistance (TA) for support to sub-project implementation must be available and a
sufficient budget must be reserved for it.
 The Final Beneficiary shall undertake an Environmental and Social Impact Assessment (ESIA) for the sub-projects
selected under the UUPTP, that add to the existing environment situation (such as for instance the extension of
tramway lines, construction/rehabilitation of depots, stations) in line with the principles of the Directive
2001/42/EC. In case of rehabilitation of existing infrastructure (tramway railroads, overhead lines for trolleybuses,
depots) environment and social mitigations measures should be prepared for the renovation work period.
 If an EIA is required according to national or EU legislation, EIA has been finalized and approved by the competent
authority and satisfactory to the Bank.
 The competent authority confirms through issuing a statement that the component does not have a significant
negative impact on the site of nature conservation

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The PMSU and/or the Consultant shall support the Final Beneficiary in organising the preparation of the environmental
report and public consultation process. It will inform the Bank without delay of any action or protest initiated or any
objection raised by any third party or any genuine complaint received by itself or by any Final Beneficiary of any
Environmental or Social Claim that is to its knowledge commenced, pending or threatened against the UUPTP or any Final
Beneficiary with regard to environmental, social or other matters affecting the UUPTP or any Sub-Project;
The SC shall not endorse any Sub-project components that require an EIA according to national or EU legislation, until
the EIA has been finalised and approved by the competent authority and concurred by MoI and EIB;
The SC shall not endorse any sub-project that has the potential to adversely affect a site of nature conservation, protected
under national or international legislation or agreements, until the competent authority confirms that the sub-project does
not have a significant negative impact on the site;
Until up to five years from the date of Effectiveness of the Finance Contract the MoI may submit to EIB a request for
allocation (the “Allocation Request”).
EIB’s funds will be allocated to sub-projects identified as eligible for financing in line with Technical description of the
Finance Contract and which have been endorsed by the Steering Committee and approved by the bank.
In case of approval, EIB will issue a letter of allocation, informing the MoI/MoF of its confirmation/approval of the sub-
projects submitted and of the amount in EUR allocated to such a sub-project. In the event the Bank does not approve a
submitted Allocation Request, the Bank shall inform the MoI thereof.

As per Articles 3.4.1., EIB’s funds will be allocated according to the sub-project size in line with EIB’s applicable
procedures.

3.6 Financing plan for the sub-projects

Financing plans for all sub-projects under the UUPTP must ensure financial sustainability of the investments considering
current and future adjusted tariffs, co-financing conditions (own resources, IFIs, grants), and other transfer and grant
support to fill-in the financing gaps.
The Borrower (MoI, MoF) and Final Beneficiaries shall endeavour to seek co-financing of the sub-projects planned to be
financed by the EIB from other International Financing Institutions and donors in coordination with EIB. Prior to each
Allocation, the Borrower shall report to the EIB the steps taken to review co-financing options on the UUPTP Project level.
EIB loan financing can finance up to 100% of the total sub-project cost and up to 50% of all investments included under
UUPTP (of the expected total project cost of EUR 400m).
The Borrower shall monitor on a regular basis (not less that semi-annually) the financing of the UUPTP on Project level
and respective share of EIB loans.

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 4 Project implementation

4.1 Sub-project implementation

Sub-projects prepared and endorsed for financing by the Steering Committee and approved by the EIB/IFIs, where
applicable, shall be implemented at agreed quality and budget, and according to agreed time schedule. This is the full
responsibility of the PIU, on behalf of the Final Beneficiary.
The main sub-project implementation tasks for the PIU and, where applicable, their consultants are listed below:
 Review and evaluation of existing information, reports, studies etc.;
 Prepare or complement existing studies, if required;
 Prepare detailed design and tender documents for works, supplies and services;
 Tendering including prequalification (if applicable), tender evaluation and contract award;
 Supervise the construction and commission the works;
 Monitoring during the defects liability period;
 Evaluate the work performed and monitor on a weekly basis the overall sub-project implementation status.
For sub-projects where the size and complexity so justify, UUPTP loan proceeds may be available for PIU to procure
consultants, on exceptional basis, to assist with the project implementation phase. Procurement of such consultants shall be
carried out in accordance with the specifications in Chapter 5.
The principal role of the PIU is to drive, monitor and inspect the sub-project execution, as carried out by both the Engineer
and the Contractor. The PIU shall not replace the Engineer’s/supervisor’s role in the sub-project implementation process.
Key PIU tasks during the sub-project implementation phase are listed in section 2.1.6 above.

The PIU shall in general not approach directly the Contractor. This is the task of the Supervising Engineer who should;
 Approve all changes and variations;
 Takeover of structures, equipment and supplies on behalf of Employer;
 Review Contractor reports;
 Provide statements on Contractor´s requests;
 Prepare statements on design author supervision, which should be arranged and paid for by the Employer for FIDIC
Red Book contracts and the contractor for FIDIC Yellow Book contracts;
 Elaborate statements on technical issues during construction, statements on irregularities and defects in designs;
 Prepare reports on unforeseen technical problems, on complaints from public and on their requests
 Monitor the safety issues on site and minimization of negative effects of works on environment and surroundings;
 Perform unscheduled checks on site with records to site diary;
 Approve extra works and significant changes in the sub-project subject to substantiated justifications.

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 4.2 Sub-Project Implementation Reporting

The PIU is responsible for planning and implementation of sub-projects on behalf of the Final Beneficiary, and for drafting
and presenting reports to the PMSU, MoI and MoF and EIB/IFIs.
The basic PIU reporting requirements are presented in Section 9.
At this stage, particular attention is drawn to the following reports:
- Quarterly Progress Report. This document has to be submitted to the PMSU and Contracting Authority/Final
Beneficiary at the beginning of each quarter. The report presents the activities carried out in the previous quarter by
the PIU, including report on implementation of the approved procurement plan, sub-project physical and financial
progress, financial cash flow projection, publicity activities and actions, risks, problems etc. This report needs to be
submitted by the PMSU to EIB for “no comments” review.

- Quarterly Financial Report. A summary of the financial status of the sub-project compared to budget and cash
flow predictions (plan), including updated financial and disbursement plan. To be submitted at the beginning of
each quarter to the PMSU and Contracting Authority/Final Beneficiary. This report needs to be submitted by the
PMSU to EIB for “no comments” review.
PIU reports do not need to be too voluminous. The PIU itself should solve problems on site on behalf of the
Employer/Final Beneficiary and only refer about its activities in short. According to good practices the absolute majority of
documents describing sub-project implementation and progress must be prepared by the Contractor and Engineer. It is thus
mainly the PIUs task to summarize and synthesize reports prepared by other parties.

4.3 Preparation of design documents and tender dossiers for works/supplies/services

Tender documents for works shall be prepared using internationally recognised standard procurement documentation, as
outlined further in section 7.2.2 of this manual.
The PIU or their consultant (contractor) is responsible for preparing design and tender documents. If a consultant is
employed, the PIUs will primarily be responsible for supplying the required information, supervising the consultants’ work
and reviewing and approving their outputs.
After approval of design and tender documents by the PIU, they should be submitted to the PMSU for review. The PMSU
and the PMSU consultant shall at a minimum:
 verify that the documents comply with the UUPTP requirements and templates;
 carry out high level technical review of the designs according to the agreed checklists and verify that agreed design
criteria are applied;
 verify the cost estimates with the UUPTP budgets;
 verify that tender documents comply with requirements in this manual and the relevant Ukrainian legal and
regulatory requirements;
 coordinate reviews carried out by EIB/IFIs and obtain ”no further comment” to the documents where applicable,
and;
 update UUPTP records with key sub-projects data.

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The PMSU has to issue within 5 working days a clearance letter to the Final Beneficiary approving or rejecting dossiers
with detailed explanation of any rejection.

4.4 Tendering of supplies, services and works

The PIUs are responsible for the procurement of service contracts, works and supplies for UUPTP sub-projects. Where
justified, they are supported by the PIU consultants. The PMSU monitors the tendering processes.
UUPTP applicable tendering and procurement procedures and controlling mechanisms are presented in Chapters 7 and 8
respectively. Tendering for all sub-projects under UUPTP must comply with these requirements at all times.

4.5 Rolling Stock, tracks, depots, stations, works and IT supervision

Internationally and nationally tendered contracts with a value above EUR 350,000.00 require a tender for the position of a
“Supervising Engineer”. The Supervising Engineer shall be a responsible and suitably qualified engineer with a minimum
of 10 years’ experience supervising works, supplies and/or services of a similar nature.
Sub-project supervision is the responsibility of the consultant retained for this purpose for the independent sub-project
quality assurance and quality control. The consultant independently acts on behalf of the Final Beneficiary (referred to as
Employer in the contract) and in accordance with the contract conditions.
General and site supervision of works shall be performed on a continuous basis. Permanent presence on site by the
consultant should be provided during all on-going production, construction and installation work.
The sub-project supervision primarily includes the following activities:
 General and site supervision of works and construction management;
 Preparation of initial operation activities;
 Continuous project management and monitoring;
 Periodic reporting according to the contract signed between the Final Beneficiary and the Supervising body;
 Participation in the preliminary acceptance; and
 Compilation of the sub-project Final Report.
The exact scope of the sub-project supervision services the engineering consultant has to conduct is defined in detail in the
Terms of Reference of the consulting contract. The Final Beneficiary, with the assistance of a consultant, will draft the
Terms of Reference, which have to be to the satisfaction of the Bank.

4.6 Sub-Projects progress monitoring

The progress of sub-projects implementation has to be subject to constant monitoring by the respective PIUs or their
consultant, with regular reporting of progress and issues to the PMSU. The PIU acts on behalf of the Final Beneficiary (as
given in the contract) and is responsible for monitoring sub-project progress and the engineering consultants’ and
contractors’ compliance with the terms of contract.
Through conducting continuous progress monitoring the PIUs shall ensure that the Employer’s requirements / technical
specifications adhere to and that milestones according to the contracts are met.

25
Progress monitoring shall be conducted based on Quarterly Technical and Financial Progress Reports, the format and table
of contents to be agreed with the Final Beneficiary (as given in the contract).
The sub-project progress monitoring report has to be submitted the Bank semi-annually (15th January and July).

4.7 Budget and variations management

The budget for a contract is determined at the time of no objection to the final evaluation (appraisal) report and can only be
modified under certain conditions.
An estimate of the final cost of the contracts shall be prepared by the independent supervision consultants at least every 6
months during execution of the contracts.
Any variations, increases in quantities, claims, escalation or other cause which increases the contract cost by more than the
limits presented in Chapter 8 will require the appropriate level of no objection of the Bank.

4.8 Experts

EIB may hire experts that will carry out sample checks at different stages in the sub-project implementation process. The
Final Beneficiary will ensure that appropriate access to any site and any document required for carrying out the verification
is granted to the experts upon their request. The verification may concern, but shall not be limited to the following
elements:
o Compliance of the scope of works with recommendations of preparatory studies.
o Quality of technical designs;
o Procurement procedure;
o Quality of infrastructure construction works;
o Quality of rolling stock used;
o Quality of services with the use of purchased Rolling stock;
o Ensuring that PSC is conveniently implemented;
o Ex-post verification of sub-project results;
o Reporting on and fulfilment of financial and operational targets.
EIB shall have the right to employ experts to undertake sample checks at different stages in the sub-project implementation
process and to confirm that the expected results are fully achieved. The following conditions shall be ensured/ followed:
 The MoI, MoF, and the final Beneficiaries shall ensure that appropriate access to any site and any document
required for carrying out sub-project verification is granted to the experts upon their request.
 The Borrower shall oblige the Final Beneficiary, through specific undertakings in the Loan Fund Transfer
Agreement, to improve any irregularities identified by the experts to EIB’s satisfaction.
 The provision of evidence for the correction of irregularities that are identified by the consultants may be
used by EIB as a disbursement condition for subsequent tranches of the loan.
 EIB shall have the right to request the full reimbursement of the cost of experts from the Borrower.

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 5 Technical assistance (TA) support
Technical assistance support can be provided at both UUPTP and sub-project level for Project management, project
screening, preparation, implementation, and monitoring.

5.1 Funding of technical assistance support

The funding available for the technical assistance support includes:

Funding
Description Scope of technical assistance
source

Technical Assistance facility providing - - Preparation of sub-projects

UUPTP MPSF grant support to projects increasing energy - - Support to implementation of sub-projects (PIU)
efficiency of public transport. including construction supervision

EIB own EIB can in some cases mobilise its own

EIB own
consultancy consultancy budget in particular for - Preparation of sub-projects
funds
budget projects requiring rapid preparation.

- Preparation of sub-projects
The loan can also be utilized to support the
Ukraine Urban management, coordination, monitoring or - Support to implementation of sub-projects (PIU)
EIB loan including construction supervision
Public transport planning of the investment sub-project, as
proceeds
Project well as preparation, design, supervision - Support to implementation of Project (PMSU)
and implementation of sub-projects.
- Monitoring tasks

- All of the abovementioned but not limited to the

Other Other Other
afore stated

5.2 Delivery of technical assistance

TA may be delivered during all stages of the UUPTP and sub-projects cycle to support preparation, implementation,
control and monitoring. PMSU, in coordination with EIB, will agree on the TA requirements ,the SC will endorse the TA
requests in case the TA is financed from EIB loan. TA Cooperation Agreement, if necessary, will be signed between the
MoI, EIB and final beneficiary to provide legal and regulatory basis for the professional consultants to render technical
assistance. TA activities will be coordinated by MoI and EIB, and managed by the PMSU and PIUs at sub-project level.
The UUPTP promoters will require assistance in the project cycle management, and specifically: sub-projects preparation,
implementation, monitoring and evaluation, legal and regulatory advice, procurement services, and generally add on
resources for the Project and sub-projects implementation. Quality assurance and quality control will be the centrepiece
element of supervision by MoI and EIB, as well as PMSU and PIUs. Special attention will be rendered to achieving a
positive environmental impact from the investment sub-projects’ implementation, as well as better services for the transport
services users and the community at large. To the extent possible TA will, when used conscientiously, significantly add
value to the overall investment UUPTP implementation.

27
All equipment, works and services used in the delivery of technical assistance (TA) arising in the context of UUPTP and
financed by EIB and all payments under contracts for the provision of EIB TA shall be exempted from VAT or other taxes,
as stated in Annex A1 of the Finance Contract. For investment grants and technical assistance contracts the exemption
procedures are provided in CMU’s Procedure #153 and the Tax Code of Ukraine.

5.3 Types of technical assistance

5.3.1 Support to PMSU
Support to PMSU will be rendered to strengthen its capacity for Project management and control throughout the life of the
UUPTP and during the whole project cycle for sub-projects under the UUPTP.

5.3.2 Support to PIU

Support to PIUs will be rendered to address any knowledge or experience deficiencies regarding preparation,
implementation and monitoring of projects.

5.3.3 Project preparation

Consultants will be procured for preparation of feasibility studies, and, where relevant, environmental and social
assessment studies (ESIA) etc. Where required, the previously executed preparatory studies can also be considered.

5.3.4 Project implementation

Consultants will be procured for preparation of detailed designs and tender documents, and for construction supervision.
5.4 Requesting technical assistance support

In case a TA support is required, the Final Beneficiary will have to present a TA request to the PMSU. The template for a
TA request is attached under the Annex 3. All TA requests will be analysed by the PMSU, summarised in joint TA
Procurement Plan and submitted for approval to the EIB.

5.5 Management of technical assistance

TA on Project level shall be managed by MoI and EIB. TA at sub-project level shall be managed by the PIUs with support
from and monitoring by the PMSU.

5.6 TA Procurement

All TA procurement activities will be carried out according to the EIB Guide to procurement
(http://www.eib.org/attachments/thematic/procurement_en.pdf) except for different thresholds as defined in the PPM.

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 6 Financial management

6.1 Loan Fund Transfer Agreement

The distribution of Loan funds by the Borrower to Final Beneficiaries for the financing of sub-projects for which EIB has
issued an Allocation Letter is made according to a Loan Fund Transfer Agreement.
A Loan Fund Transfer Agreement (LFTA) is prepared for each allocated sub-project. The process of preparing and
approving each LFTA envisages the following steps:
 The MoI together with the Final Beneficiary of a sub-project prepares a draft of the LFTA. The MoI then submits
the draft of the LFTA for review to the MoF;
 The MoF reviews the submitted draft and, if necessary, provides comments in writing within 20 working days from
the date of submission of the draft of the LFTA. To this stage the MoF has to clarify and confirm the final
identification of the Signing Parties to the LFTA and collateral required under the LFTA;
 The draft of the LFTA is submitted to the MoI, and to other signatories of the LFTA for a review and consequently
to the Bank;
 The Bank provides its non-objection or comments to the draft of the LFTA in writing in 5 working days;
 The approved draft of the LFTA is then passed to the Signing Parties for execution.
The role of MoI, within its competencies, given to it by the law, shall be to ensure that the methodology to establish
economically sound tariffs for the public transport to pay back the investment component is and will continue to be in
placeas well as to enhance the local municipalities to introduce sustainable transport tariffs.
It should be noted that the LFTA would not be approved by the MoF and therefore signed in case there are overdue debts
under other financial obligations of the Final Beneficiary to the State Budget of Ukraine and/or to other IFIs.
The Signing Parties of the LFTA are:
 Ministry of Finance of Ukraine (MoF);
 Ministry of Infrastructure of Ukraine (MoI);
 City Council;
 Final Beneficiary
The process of preparation and signing of a LFTA should be completed within 90 (thirty days) calendar days from the
EIB’s issuance of the Allocation Letter relevant to the sub-project. If the LFTA is not signed within this period, the
information should be brought to the attention and decision of the Steering Committee and add to the deadline additional 15
working days as a latest time to sign the LFTA.

6.1.1 Mandatory conditions and provisions of Loan Fund Transfer Agreements

Each Loan Fund Transfer Agreement shall reflect conditions and undertakings of the Finance Contract and amongst others
it shall include the following provisions:

- Loan amount to be available to the Final Beneficiary under the LFTA, as well as the relevant Currency;

29
 - Loan tenor and grace period;
- Procedure for loan transfer to the Final Beneficiary, including requirements for Project loan account set up and
operation and requirements for preparation, submission and approval of transaction documents;
- Procedure of loan servicing and repayment by the Final Beneficiary, that shall reflect the mechanism of interest
accrual and repayment, including respective fees, of the Borrower and the Bank as defined in the Finance Contract
as well as the Borrower’s obligations on the Loan use and repayment under the Finance Contract;
- All relevant to the sub-project level disbursements conditions and undertakings of the EIB Finance Contract (i.e.
1.04C of the EIB FC),
- Monitoring and reporting mechanism.
- Procedure on Control of the Loan use solely for financing of eligible and approved expenditures, as well as Loan
reallocation or repayment in case of violation of the loan use requirements (acc. Sub-clause 4.03A(5) of the Finance
Contract); in the framework of this procedure, each Final Beneficiary:
o Implements and maintains an adequate management system for each sub-project satisfying the requirements
set out in PPM;
o Grants access to experts2 , appointed by EIB, to any site or document to carry out the verification related to
sub-project implementation;
o Promotes or avoids restraining the communication between the experts and any party that is involved in the
sub-project implementation or is affected by sub-project implementation.
o Makes corrections and provides evidence of respective corrections made in relation to failures or
irregularities identified by the experts, in order to satisfy the requirements of the Bank.
 All relevant to the sub-project level undertakings specified in Article 63 of the Finance Contract, including: 6.04 –
Procurement procedure; 6.05 – Continuing Project undertakings: 6.06 – Compliance Laws: 6.07 – Integrity; 6.08
General Representations and Warranties.
 VAT payments related to sub-project are covered by Final Beneficiary, budget of a municipality/ benefiting from
implementation of the sub-project or any other sources without recourse to the Bank;
 If the Final Beneficiary fails to utilize loan proceeds according to the payment plan, that with signing of the LFTA.
Final Beneficiary gives its consent that the loan tranches disbursed to its sub-project account can be transferred by
the MoF at the request of the MoI (subject to approval by EIB) for the benefit of other allocated sub-project(s)
under UUPTP. The Final Beneficiary has to be informed in written form 15 working days prior to any transfer of
the funds from its sub-project account and has 5 working days to object to such transfers. The Final Beneficiary
will still have the right to request unutilized loan amount for further sub-project implementation and in this case has
to submit an updated payment plan to the MoI. The transfer has to be approved by the Bank.

6.2 The Loan Disbursement Procedure

The main steps of the Loan Disbursement Procedure include:

2
EIB may hire (at expense covered via the Loan) experts (see article 4.8 of the PPM), who can be accompanied by representatives of the European Court of Auditors,
the European Commission and the European Anti-Fraud Office.

3
. According to the sub-clause 6.01 of the Finance Contract, exercise of the rights under the Loan Fund Transfer Agreement shall be in such a manner as to protect the
interests of the Borrower and the Bank, to comply with the provisions of the Finance Contract and to accomplish the purposes of the Programme for which the Loan
was made.

30
  Preparation and submission to the Bank all the documents/information related to conditions precedent to the related
Tranche (article 1.04A, {for 1st disbursement} 1.04B {for all disbursement}and 1.04C {for 2st and all
disbursement} of the Finance Contract);

 Preparation of the Disbursement Schedule and Disbursement Requests by the PMSU and submission by the MoI to
MoF; and submission of the Disbursement Requests by Borrower (via MoF) to EIB;

 Receipt of the Disbursement Offer from the Bank to the Borrower (via MoF);

 Acceptance of Disbursement Offer by the Borrower (via MoF);

 Accepted Tranche transfer to the EUR Collection Account of the Borrower (MoF).

Figure 2 Procedure of the Loan Disbursement

Within the Loan amount of EUR 200 million, the Bank can provide disbursements in up to 15 (fifteen) Tranches, with each
Tranche, except the remaining unused Loan balance, being not less than EUR 5 million.

6.2.1. Preparation of Loan Disbursement Requests and Disbursement Schedule and Conditions Precedent to the
Disbursement
The Loan Disbursement Requests (Annex 2 to this PPM) and Disbursement Plan for the project level are prepared by the
PMSU based on payment plans prepared by the PIUs for the level of the allocated sub-projects.
In order to do so in an adequate manner, the PIUs and the PMSU perform the following:

The PIUs submit to the PMSU procurement plans, expected payment plans/cash flow plan and disbursement plan
or other information, which has to be sufficient to appropriately estimate and plan capital requirements to cover
sub-project expenditures4.

At the Project level, the PMSU prepares and provides updated consolidated payment plans.

4
It must contain information on risk sensitive payments as well as include information on Project funding from other sources.

31
 
Based on Project payment plans, the PMSU develops and provides through the MoI to the MoF the Disbursement
Schedule.

Based on the Disbursement Schedule the PMSU drafts Disbursement Requests and through the MoI submits them
to the MoF. The Borrower, represented by the MoF in case all the requirements of budgetary legislation are
fulfilled with regard to the amount indicated in the Disbursement Request, sends a Disbursement Request to the
Bank.
In addition to the Disbursement Request, the disbursement of any Tranche is conditional upon receipt by the EIB, in form
and substance satisfactory to it, on or before the date falling 7 (seven) Business Days before the Scheduled Disbursement
Date, certain documents or evidences from the MoF, the MoI, from the Final Beneficiary or other bodies as specified in
5
Article 1.04A, 1.04B and 1.04C of the Finance Contract . All the Tranches (including the first and subsequent) can be
made only in case of meeting the conditions and fulfilling the requirements stated in the sub-clauses 1.04C of the Finance
Contract (cf. Annex 2 of this PPM).
Additionally, the Bank monitors the total amount of Tranches disbursed and requested for disbursement. Such total amount
must not exceed the amount that has been allocated by the Bank.
PMSU in close coordination with PIUs, MoI, MoF and EIB monitors status of submission of the documents/evidences
required for the disbursement and coordinates efforts where necessary.

6.2.2. Disbursement Offer

Upon receipt of the Disbursement Request from the MoF, the EIB shall send to the MoF a Disbursement Offer in agreed
form (Schedule C.1 of the Finance Contract), unless the Bank executed its right to suspend or cancel the Loan6.
The Disbursement Offer includes:

Tranche amount in Euro;

Scheduled date for Disbursement, which falls on a working day and not earlier than in 10 (ten) days after
submission of the Disbursement Offer, but not later than the Final Availability Date of the Loan;
 Disbursement Acceptance Deadline;
 Type and size of interest rate, conditions of interest accrual, interest payment, the date of the first payment and
Tranche repayment conditions.
The Bank shall not send the Borrower more than one Disbursement Offer per calendar month or more than six
Disbursement Offers per calendar year. There shall not be more than one disbursement of a Tranche per calendar month
under UUPT.

6.2.3. Disbursement Acceptance and Loan Tranche Payment

If the received Disbursement Offer is acceptable, the Disbursement Offer is to be initialled by authorized officer of the MoI
and signed by authorized officer at the MoF within the timeframe specified in the Disbursement Offer.
The Borrower (via MoF) must submit the Disbursement Acceptance in agreed form (Schedule C.1 of the Finance Contract)
to the Bank on the date and time or before the date and time indicated as the Disbursement Acceptance Deadline.

5
The following paragraph includes the general principles of the conditions precedents needed to be met before any disbursement. The full list is in
the Finance Contract
6
According to the sub-clause 1.06B of the Article 1 of the Finance Contract.

32
If the Disbursement Acceptance was properly made by the Borrower (MoF), the Bank shall make the accepted tranche
available to the Borrower on the indicated Disbursement Date7 subject to the terms and conditions of the Finance Contract.
In this case, the Disbursement is done by the Bank to the EUR Collection Account opened by the MoF at Ukreximbank
(servicing bank) or any other bank acceptable to EIB.
If the Borrower did not provide the Disbursement Acceptance, or made it improperly and/or after the Disbursement
Acceptance Deadline, it is considered that the Borrower declined the Loan Disbursement Offer.

6.2.4. Opening of EUR Collection Account and sub-project Accounts

At the request of the MoI, the MoF opens a EUR Collection Account prior to the first disbursement. The documents
necessary for the opening of such an account are prepared and submitted to the servicing bank by the MoF and MoI. With
this regard, no inputs are required from other parties.
Opening of a EURO Collection account will require from the two ministries submission of a set of documents to the
servicing bank. This set of documents consists of:
 Certified copies of passports of all signatories (authorized persons) and of their certificates on tax codes,
 Orders (resolutions) on appointing of the signatories to their positions, certified by stamp of the authority,
 MoF and MoI regulatory documents, confirming rights of the authorized persons to sign the documents on behalf of
authority;

In order to ensure proper accountability for every sub-project the MoF opens a sub-project account for every allocated sub-
project.
Opening of a sub-project account will require submission of a set of documents to the servicing bank. This set of
documents consists of:
 Specimen signatures cards of:
o The sub-project’s Final Beneficiary (at least 4 copies: 2 for the sub-project account servicing bank, 1 for MoF,
and 1 for MoI),
o MoI (at least 3 copies: 2 for the sub-project account servicing bank, 1 for MoF)
o MoF: 2 copies for the sub-project account servicing bank;
Each card should contain at least 2 signatories of relevant organization (entity).
 Certified copies of passports of all signatories (authorized persons) and of their certificates on tax codes,
 Orders (resolutions) on appointing of the signatories to their positions, certified by stamp of the organization,
 MoF, MoI and Final Beneficiary’s regulatory documents, confirming rights of the authorized persons to sign the
documents on behalf of authority (entity);
MoF shall issue a power of attorney for the authorized representatives of the MoI and the Final Beneficiary to cooperate
with the servicing bank on behalf of MoF, specifically: to submit signed payment orders for funds to be paid out of a sub-
project account, to receive bank statements and to receive/submit other correspondence regarding servicing of the sub-
project account. The Final Beneficiaries and/or the MoI (depending who interacted with the servicing bank) are to deliver

7
Upon written request of the Borrower, the Bank may defer or cancel disbursement of already accepted Tranche according to the sub-clause 1.05
of the Finance Contract.

33
to the MoF copies/originals of documents received from the servicing bank, including one original of payment order with a
stamp of a servicing bank..
MoF shall issue a letter to the sub-project servicing bank providing explanations on the mechanisms of EUR Collection
Account and sub-projects’ accounts functioning.
MoI shall coordinate submission of signatures specimen cards and of supplementing documents of MoI and the Final
Beneficiaries.
Sub-projects’ account details are expected to be specified in the sub-project’s Loan Fund Transfer Agreement. May any of
the sub-projects’ account details change, the MoF shall immediately inform the MoI in writing on new details and the MoI
should immediately communicate these changes and details to the respective Final Beneficiaries.

6.2.5. Payment procedure

The MoF together with MoI transfers the Loan proceeds under the Tranche from the EUR Collection Accounts to the sub-
projects’ accounts. The MoF executes such transfer to the sub-project accounts by splitting the Tranche received on the
basis of updated Disbursement Schedule.
The MoF together with MoI and the Final Beneficiaries and at the request of MoI and following approval by EIB (see
article 6.1.1) may transfer funds from any sub-project Account and EUR Collection/Account to any sub-Project Account
and EUR Collection/Account, provided that the funds would be used for the UUPTP implementation based on the updated
integrated financial plan as prepared by the PMSU.
In order to process payments under their sub-projects, the Final Beneficiaries prepare payment orders8 compliant to the
Payment procedure as set out below. In the course of the preparation of payment orders, the PIUs of the Final Beneficiaries
may consult with the PMSU on the aspects of the Payment procedure.
 Upon receipt of an invoice from a contractor approved by the independent supervising engineer (performer of
works, supplier of commodities and services), financial personnel of a PIU checks compliance of the issued invoice
to the terms and conditions of the signed contract. If any inconsistency is found in the issued invoice, PIU
communicates this to the invoice issuer to request re-issuance. Correct invoice, shall be submitted to the
MoI/PMSU for endorsement. The payment orders have to be supplemented by:
a. For the 1st payment under each approved contract:
i. Original examples of the contract (with all amendments to such contract if any);
ii. EIB’s no objection to Final evaluation (appraisal) report;
iii. Copies of contract’s guarantees (if any);
iv. Delivery-acceptance act for goods, works or services or construction related forms (KB-2v, KB-3), if
applicable;
v. Supervising engineer approval document of the payment
vi. If foreseen by the contract, other documents referenced in the contract.
b. For the 2nd and consequent payments under each approved contract:
i. Reference to the submitted documents a(i), a(ii), a(iii) and original of the newly arrived amendments to
such contract (if any);
ii. Delivery-acceptance act for goods, works or services or construction related forms (KB-2v, KB-3)
relevant to the payment order;
8
Payment orders here and further in the text would also refer to any other similar documents required by servicing bank to effectively fulfil transfer
of funds to contractors. The term would include orders required to sale/purchase/transfer hard currency.

34
 iii. Supervising Engineer approval document of the payment
iv. On exceptional basis and if foreseen by the contract, other documents referenced in the contract.
In case the payment is done in foreign currency, the Final Beneficiary has to ensure that the extra copies of
documents necessary for foreign currency control are submitted by Final Beneficiary to the servicing bank.
The payment order (4 hard copies for Final Beneficiary, MoI, MoF and servicing bank) together with the
supplementing documents (3 hard copies for MoI, PMSU and MoF) must be signed (or certified) by the Final
Beneficiary’s signature and stamp. The PIU is also expected to provide scan copies of the payment document and
the supplementing documents electronically. Scan-copies must be sent by email to the PMSU and the MoI on their
formal e-mail address.
A cover letter in 2 hard copies (one for the MoI and another for the Final Beneficiary) should accompany a hard-
copy submission of the documents mentioned above.
 PMSU acknowledges receipt of the documents by indicating date, time, and name on a copy of the cover letter,
which is to be stored by the Final Beneficiary for record keeping, and submits the received documents for review
and the accompanying cover letter – for registration by a stationary department of the MoI. The PMSU run a
compliance check of the received documents:
o The PMSU reviews the documents in the context of compliance to the signed contract with the results of
completed tendering procedures, their duly execution, completeness and duly certification of the copies of
documents;
o The PMSU processes documents in order to certify the targeted use of loan funds pursuant to the Finance
Contract, duly execution of the documents, absence of arithmetical mistakes and misprints, completeness
and duly certification of the copies of documents.
PMSU endorses or rejects the payment order based on the results of the compliance checks. The process of revision
and decision-making over the payment order should be made within 3 working days from the date of receipt on
cover letter.
In case of endorsement, the Project Coordinator signs-off the payment order.
In case of rejection, the payment order is sent back to the Final Beneficiary (PIU) with a clear indication of (a)
reason(s) for rejection.
 After endorsement by the PMSU, the cover letter of MoI (2 hard copies: one for the MoF and another for PMSU),
payment orders (4 hard copies: for the Final Beneficiary, the PMSU, the MoF and servicing bank) and the
supplementing documents (2 hard copy for the MoF and PMSU) to be submitted to a representative of the MoF.
The representative of the MoF shall undertake all the efforts to ensure timely registration of the cover letter and
supporting documents and share the scan copy of a registered cover letter with the MoI with date and number of
registration. The PMSU is expected to send the scan copies of the submitted documents to the MoF by e-mail.
The process of revision and approval over the payment order by the MoF should be made within 5 working days
from the date of receipt on the cover letter.
In case of approval, the authorized person from the MoF signs-off the payment order and submits it to the servicing
bank for transaction themselves or authorised persons. It is in FB’s interest to ensure that sufficient funds have been
requested for disbursement and therefore sufficient funds are present in the sub-project account. If requested by MoI
and approved by EIB, the MoF together with MoI shall transfer sufficient funds from one sub-project account to
another sub-project account if such available (see article 6.1.1.).The MoF has the right to reject the payment order if

35
 the submitted payment order and the supporting documents are not completed according to the relevant Ukrainian
regulation, the LFTA, and/or agreements with contractors.
In case of rejection, the MoF informs the PMSU in writing with a clear indication of (a) reason(s) for the payment
rejection. The PMSU has to inform and provide the details of the payment order rejection to the Final Beneficiary (PIU)
within 2 working days. The Final Beneficiary has either to amend and re-submit the payment order and the supplementing
documents or, if a mistake was found in the documents issued by a contractor, contact the invoice issuer to request re-
issuance of the payment document.
It is expected that all the funds disbursed by EIB and unutilized, and therefore remaining in EUR Collection Account
and/or sub-project accounts would be repaid by the Borrower to the EIB following completion of the Project
implementation.

7 Procurement of supplies, works and services

7.1 Types of procurement procedures and contracts

Implementation of individual sub-projects under UUPTP will require procurement of services (e.g. technical assistance and
studies), supplies (i.e. equipment and materials), and works (i.e. infrastructure, facilities and other engineering works). The
procurement will cover contracts of different sizes and applying different procedures.
A distinction is made between National Competitive Bidding (NCB) and International Competitive Bidding (ICB).
Application of NCB or ICB procurement procedures depends on the type of contract (service, works, and supply) as well as
on the value of contract. The requirements and thresholds for procurement under UUPTP are defined in the table below.

Thresholds (EUR)
Contract
< 200,000 200,000 – 1,000,000 >1,000,000
Supplies NCB open procedure or ICB open procedure with publication in ICB open procedure with publication in
negotiated procedure OJEU9 OJEU
Services NCB open procedure or ICB restricted procedure with publication in ICB restricted procedure with publication in
negotiated procedure OJEU OJEU
Works NCB open procedure or NCB open procedure ICB open or restricted procedure with
negotiated procedure publication in OJEU

All procurement procedures and contracts related to individual sub-projects under UUPTP will be reflected in a
procurement plan prepared by the PIU for each respective sub-project. Consolidation of procurement plans in one joint
procurement plan for a sub-project is done by PMSU and submitted to EIB for review and approval (no objection).
A sample procurement plan is attached in Annex 4.
All procurement packages financed by EIB shall be included in the procurement plan before or after launch of the
procedure.
9
http://www.ojeu.com/index.html

36
Procurement controlling mechanisms are outlined in Chapter 8

7.2 Particular Procurement requirements

7.2.1 EIB requirements
All procurement under UUPTP shall be carried out in compliance with the EIB Guide to Procurement for projects financed
by the EIB. Thresholds in 7.1 of this PPM supersede the concerned thresholds in the Guide to Procurement of the EIB. This
document is available online under the following link: http://www.eib.org/attachments/thematic/procurement_en.pdf.
While all provisions in the Guide should be respected, particular requirements included in this Guide that should be noted
are quoted below.
Ethical conduct (Clause 1.4): “It is EIB’s policy to require that promoters, as well as tenderers, contractors, suppliers and
consultants under Bank-financed contracts, observe the highest standard of ethics during the procurement and execution of
such contracts. EIB reserves the right to take all appropriate action in order to enforce this policy. Moreover, EIB is
committed to ensuring that its loans are used for the purposes intended audits operations are free from prohibited conduct
(including but not limited to, fraud, corruption, collusion, coercion, and money laundering and terrorist financing).
In pursuance of this policy as set out in EIB’s Anti-Fraud Policy and within the framework of its exclusion procedures
(published in EIB’s website: www.eib.org), EIB:
 may declare an individual or an entity ineligible to be awarded a contract under any EIB Project or to enter into any
relationship with EIB, if it determines pursuant to its exclusion procedures that such individual or entity has
engaged in any prohibited conduct in the course of the procurement process and/or implementation of the contract;
and
 may cancel all or part of EIB financing allocated to a contract for works, goods or services if it, at any time,
determines pursuant to its exclusion procedures that an individual or an entity has engaged in any prohibited
conduct during the procurement process ordering the execution of the contract, without the promoter having taken
action satisfactory to EIB to investigate and/or terminate the prohibited conduct or, as the case may be remedy the
damage.”
Conflict of interest (Clause 1.5): “The EIB requires that candidates, tenderers, contractors, suppliers or consultants
participating in an award procedure or a contract under a Bank-financed project shall not have a conflict of interest.
Conflict of interest occurs when the impartial and objective exercise of the functions of the promoter, or the respect of the
principles of competition, non-discrimination or equality of treatment with regard to the procurement procedure or contract,
is compromised for reasons involving family, emotional life, political or national affinity, economic interest or any other
shared interest. EIB will not accept candidates or tenderers affected by a conflict of interest in the award procedure to
benefit from EIB financing in relation to the contract to be awarded under the concerned procedure. The assessment of
whether or not there is a conflict of interest has to be carried out on a case by case basis, considering the actual risk of
conflict based on the specific circumstances of the case at stake. The individual or entity in question should be allowed to
present supporting evidence which might remove all suspicion of a conflict of interest.”
Prohibited conduct – Covenant of Integrity (Clause 3.6): “The EIB is committed to ensuring that its loans are used for the
purposes intended and its operations are free from prohibited conduct. In countries outside the EU, Ukraine included, EIB
will require that promoters insert in the tender documents (or in the contract in the case of a negotiated procedure) a clause
that:

37
  requires any tenderer for works, goods or services, as a condition of admission to eligibility, to execute and attach to
its tender a Covenant of Integrity in the form indicated in Annex 8;
 grants the promoter, EIB and auditors appointed by either of them, as well as any authority or European Union
institution or body having competence under European Union law, the right of inspection of the records of the
contractor, supplier or consultant in connection with any Bank-financed contract.”
EIB also requires that the EIB Anti-fraud Policy10 is included in the tender documents for any supplies of works, goods or
services under UUPTP.
Any form of Prohibited Conduct in relation to tenders or supplies of works, goods or services under UUPTP shall be
immediately reported to the EIB Anti-corruption Hotline: investigations@eib.org, (+352) 4379 64000.
Each Final Beneficiary will ensure that all contracts under a Sub-Project provide for:
- the requirement that the relevant contractor promptly informs the Bank and the PMSU of a genuine allegation,
complaint or information with regard to Prohibited Conducts related to the Sub-Project;
- the requirement that the relevant contractor keeps books and records of all financial transactions and expenditures in
connection with the Sub-Project; and
- the Bank’s right, in relation to an alleged Prohibited Conduct, to review the books and records of the relevant
contractor in relation to the Sub-Project and to take copies of documents to the extent permitted by law.

Local preference: Regardless of applied procurement procedure (national or international) EIB does not allow for local
preference to be given in works contracts (even if they include the supply of goods) or services originating in Ukraine.
Details regarding Local Preference for Goods are presented in section 3.7.9 of the EIB Guide to Procurement.

7.2.2 Tender documents

Tender documents for works shall be prepared using internationally-recognised standard procurement documentation, such
as:
- the World Bank templates (2017 Procurement of Works and User's Guide11),
- the PRAG (Practical Guide to contract procedures for European Union external actions), or
- the FIDIC (Fédération Internationale des Ingénieurs-Conseils) documents that can be ordered at the FIDIC website
www.fidic.org,
provided that these tender documents are compatible with the provisions of the EIB Guide to Procurement.
Tender documents must be drafted in such a way as to permit wide international competition. They must also fully comply
with the rules set out in the EIB Guide to Procurement.
The tender documents, as well as procurement notices and pre-qualification documents, if applicable, should all be drawn
up in English for ICB tenders, while Ukrainian can be used for NCB tenders.

7.2.3 Tender evaluation criteria

Section 3.7.10 in the EIB Guide to Procurement states the following regarding tender evaluation criteria:

10
http://www.eib.org/attachments/strategies/anti_fraud_policy_20130917_en.pdf
11
http://www.worldbank.org/en/projects-operations/products-and-services/brief/procurement-new-framework

38
“The tender evaluation may be based on:
 either the lowest price of the compliant and technically responsive tenders; or
 the most economically advantageous tender, applying a number of criteria adapted to the contract in question: e.g.
price, payment terms, construction or delivery period, technical merit (proposed staff, equipment, construction
method and planning, technical characteristics, etc.), environmental characteristics, technical compatibility with
other equipment, availability of service and spare parts, operating costs, maintenance costs, etc.
The evaluation criteria selected must be indicated in the Procurement Notice and quantified in the tender documents. The
evaluation criteria specified in the tender documents must be applied in whole, without omission or addition, in the
evaluation of tenders. In case no criterion should be indicated, the lowest price only will apply. Exceptionally, the tender
documents may specifically request the tenderers to submit financing proposals. In such case, the documents should include
a clear methodology to evaluate them. In addition, the Bank recommends that tenderers also make a proposal without
financing.”

7.2.4 Packaging of sub-projects

Sub-projects of a similar nature and with geographical proximity can be grouped in packages to reduce efforts for project
administration. A package of sub-projects may be proposed at the feasibility stage. The respective feasibility studies shall
then be combined and submitted in one report. Where the package has been formed for design and tender documents, single
sub-projects with completed documents may be submitted for tendering to accelerate implementation.
Once a package of sub-projects has been given no-objection, it shall be treated as a single sub-project under UUPTP.

7.2.5 Tender and contract guarantees

The contractor will provide bid bonds, advance payment bonds and performance bonds in accordance with the established
procedure.
The bid bond ensures that the bidder adheres to the bid for the duration of the validity period. The bond shall be a fixed
amount stated in the invitation to tender. It shall generally be about 2% of the tender estimate but may vary between 1%
and 3% depending on the size of the contract.
If any advance payment, it could not exceed 10 % of the contract total value. The advance payment bond ensures that in
case the services are not performed the advance payment will be refunded. The amount of the advance payment bond
equals the amount of the advance payment. As a rule, the bond will decrease pro rata in accordance with the value of the
supplies and works provided, and the PIU shall issue the necessary authorisations for the contractor to reduce the amounts
of the bonds.
The performance bond guarantees that all contractual obligations are duly fulfilled by the contractor. The performance
bond is valid throughout the life of the contract and normally amounts to 10% of the order price up to preliminary
acceptance (substantial completion) and 5% of the order price after preliminary acceptance.

7.2.6 Rejection of bids

After opening, the bids are examined for completeness, for compliance with the bidding document requirements and for
conformity of the bonds submitted by the bidder with the specifications of the bidding documents.
The bids that have not been rejected are examined individually for technical and arithmetic correctness. Bids are evaluated
and weighted in quantitative terms, in monetary units where possible and only according to the criteria stipulated in the
bidding documents.

39
Bids are generally rejected if a bid:
 is received after the closing date;
 fails to comply with the bidding document requirements;
 contains major reservations or restrictions;
 lacks the declaration of undertaking and/or the bid bond.
If a bid price appears to be unusually low in relation to the services to be rendered, the bidder will be requested to submit a
written breakdown of his price calculation. If after review of the notes submitted by the bidder reasonable doubts persist as
to whether the required goods and works can be provided at the rates offered and if this is reasonably expected to pose a
considerable risk to the performance of the contract, the bid in question will have to be excluded.

7.2.7 Cancellation of tender procedures

Negotiations between the PIU and a bidder as well as alterations of bids between the opening of the bids and the award of
the contract are not admissible. The PIU may, however, seek clarifications from the bidders that are necessary for the
evaluation of the bids.
Neither the clarifications demanded by the PIU nor the alterations made by the bidder may lead to any changes in the
contents or price of the bid. Queries on the part of the PIU and responses from the bidder must be in writing.
In evaluating the clarification the Evaluation Committee may use its discretion to decide whether or not it should still be
considered during the rest of the evaluation process, while ensuring the equal treatment of proposals and in accordance with
the principle of proportionality. Whatever the Evaluation Committee decides, this must be fully recorded and justified in
the Evaluation Report.
Non-compliance with this requirement may lead to cancelation of the bidding process. Other eligible reasons for
cancellation of the bidding process are listed below.
 competition was inadequate;
 no bid was received that was considered as substantially responsive;
 the responsive bids substantially exceed the budget;
 the technical or financial bases of the procurement have changed materially prior to the award;
 the rates of the bid are obviously and clearly unreasonably high.
Any cancellation of the bidding process for large contracts requires EIB’s no-objection, as indicated in Chapter 8 below.
The procurement procedure is confidential. Confidentiality enables the PIU to prevent any inadmissible interference. The
PIU and Evaluation Committee can therefore not share any information on the evaluation of bids nor make any award
recommendation to the bidders or to any other persons who are not officially involved in the procurement procedure. In the
case of breach of confidentiality, the PMSU or EIB/IFIs may demand cancellation of the tender procedure.
Any attempt by a bidder to influence the process in any way (whether by initiating contact with members of the Evaluation
Committee or otherwise) will result in the immediate exclusion of its tender from further consideration.

7.2.8 Tender evaluation mechanism

Bids that are not rejected are evaluated by an Evaluation Committee, nominated by the Employer and reviewed by the
PMSU. In case of disagreement the issue shall be brought to the EIB who has the right to object. The Committee shall
comprise a non-voting Chairman, a non-voting Secretary and an odd number of voting members (minimum of three and

40
maximum of seven). The voting members must possess the technical and administrative capacities necessary to give an
informed opinion on the tenders.
The Evaluation Committee members should attend all meetings. Any absence must be recorded and explained in the
Evaluation Report. All voting members of the Evaluation Committee have equal voting rights. The names and functions of
all those involved in the evaluation process must be recorded in the Evaluation Report. All members of the Evaluation
Committee and any observers must sign a Declaration of Impartiality and Confidentiality. Any Evaluation Committee
member or observer who has a potential conflict of interest due to a link with any bidder must declare it and immediately
withdraw from the Evaluation Committee. They will be excluded from participating further in any capacity in the
evaluation meetings.
The PMSU and/or the EIB may nominate an observer to follow the evaluation. Each Final Beneficiary shall then permit
independent observers to visit its premises during all stages of tendering and grant the right of the Bank in connection with
the tendering of each Sub-Project:
- to review the evaluation reports prior to their approval by the relevant evaluation committees; and
- to prescribe the venue of the tender evaluations and the manner of the receipt and storage of the bids;
EIB reserves the right to review the bids of all bidders or of specific bidders as well as all other documents in connection
with the procurement process and awarded up to two years after completion of the project.
The evaluation aims to determine the most advantageous offer considering the price, and also other factors that are relevant
to the success of the project, as specified in the Bid documents. If the evaluation was preceded by a prequalification,
criteria that were already considered then may not be examined again unless doubts have subsequently emerged with regard
to the fulfilment of the minimum qualification criteria.
The evaluation process is confidential and no details shall be disclosed to bidders or any other party except that of the bid
evaluation reports and supporting documents. Standard notification letters and documents are provided in Annex 7.
The bids that have not been rejected are examined individually for technical and arithmetic correctness. Bids are evaluated
and weighted in quantitative terms, in monetary units where possible and only according to the criteria stipulated in the
bidding documents. The most advantageous bid determined on the basis of this procedure after correction of any arithmetic
errors will win the contract. The lowest bid price alone is generally not decisive.
If a bid price appears to be unusually low in relation to the services to be rendered the bidder will be requested to submit a
written breakdown of his price calculation. If after review of the notes submitted by the bidder reasonable doubts persist as
to whether the required goods and works can be provided at the rates offered and if this is reasonably expected to pose a
considerable risk to the performance of the contract, the bid in question will have to be excluded.
The results and conclusions of the evaluation shall be presented in an Evaluation Report prepared by the Evaluation
Committee with the support of the PIU. The Evaluation Reports and award recommendation shall be submitted to the
PMSU. For the larger sub-projects, reports shall be submitted to EIB in time to permit a review and reply to the promoter.

41
 8 Project controlling mechanisms
Levels of control
The UUPTP comprises the following four levels of controls:

Level Entity Main responsibilities

1 PIU Sub-project preparation and implementation
2 PMSU UUPTP management and PIU support
3 Steering UUPTP guidance and endorsement of allocation requests, LFTAs for signature.
Committee
4 EIB/IFIs UUPTP and sub-projects monitoring, fund allocation and disbursement, TA provision
5 MoI UUPTP supervision

Controlling mechanisms
A summary of the control mechanisms at different Project levels and project stages are presented in the tables below.

PIU PMSU EIB/IFIs

Steering Committee
Sub-project step (Internal (internal communication (communicate to
(Internal communication)
communication) and to EIB) PMSU)
Prepare or change
Endorsement of each
PPM and No action Prepare with TA support Approval
revision
templates
Allocation Approval of allocation
Prepare Endorse proposals Approval
request requests of sub-projects
TA requests Prepare Review Endorse proposals Approval
Prepare with
possible No-objection (required
Feasibility
support of before submission to No action Approval
studies/ ESIA
TA/loan funded EIB/IFI)
consultants

Procurement ICB* NCB*

Steering
Sub-project step PIU PMSU EIB/IFIs
Committee
Procurement plan
incl. methods,
Prepare No-objection No action No comment
procedures and
rules
Pre-qualification
Prepare No-objection No action No comment No action
documents
Prepare
No OJEU publication
Procurement notice OJEU No action No action
action (assist PMSU)
publication
Pre-qualification Prepare No-objection No action No objection No action

42
evaluation report,
list of candidates
Tender documents
(incl. draft Prepare No-objection No action No comment No action
contract)
Tender
Prepare No-objection No action Check No action
clarifications
Cancellation of
Prepare No-objection No action No objection No action
tender
Technical
Prepare No-objection No action No objection No action
evaluation report
No-
Final evaluation objection,
No objection
report, OJEU Ex-post NO
Prepare No action OJEU publication
recommendation publication
(assist PMSU)
for contract award of Award
Notice
Works/supply / No objection in case of
Prepare No-objection No action No action
services contract change from TDs
Contract
Prepare No-objection No action No objection No action
amendments

* ICB – International Competitive Bidding, NCB – National Competitive Bidding.

The thresholds for application of International competitive Bidding (ICB) (excluding VAT or equivalent direct taxes) are
reminded below:
 Works > EUR 1000,000;
 Goods and Services in general (except consultancy) > EUR 200,000;
 Goods and Services for electricity, gas, water and transport > EUR 200,000;
 Consultancy Service > EUR 200,000.
Remark: The non-objection or comments sent by the Bank to the promoter in the course of the procurement process are
based on the information provided by the promoter and do not relieve the promoter of his entire responsibility regarding
procurement. In particular, the Bank may review its position in the light of new information which might come to its
knowledge after it has given its opinion on a specific aspect of the process.
A detailed presentation of distribution of rights and responsibilities of key stakeholders under UUPTP is attached in
Annex 8.

43
 9 Monitoring and reporting
9.1 Sub-projects monitoring/reporting
Together with each Allocation Request the PMSU and the SC shall provide evidence that the Final Beneficiary to which
funds are proposed to be allocated has established a PIU to manage the implementation and monitoring of the sub-project.

9.2 Financial monitoring/reporting

9.2.1. Structure and responsibilities
Starting from the date of the Project allocation and until the last date of repayment under the Project or its cancellation, the
Project becomes subject to financial management and project management.
The Project financial management is supposed to ensure:
 Adequate planning and budgeting;
 Proper accounting of sub-project related assets and liabilities, including loan proceeds, investment grants and
technical assistance (if appropriate);
 Preparation, processing and controlling of payment orders and supplementing documents;
 Reporting.
The Project financial management is performed by the PMSU. The PMSU requests and receives information regarding the
sub-projects implementation from the PIUs, consolidates it, coordinates the preparation of specific sub-project reports,
consolidates the Project reports, reports required by the Finance Contract and CoM Resolution 70, as well as other
Project/sub-project related information at the request of the Steering Committee, and/or the Borrower (MoF, MoI), and/or
the Bank.
The PMSU is responsible for timely submission of documents and reports, and accuracy of information.
At the sub-project level, financial management is performed by PIUs.
At the PMSU request or on regular basis as set in the PPM, the PIUs provide all necessary information regarding sub-
project implementation, timely submission of documents and reports, and accuracy of information.

Financial management is to be carried out by relevant personnel of the PMSU at the Project level and by relevant personnel
of each PIU at sub-project level.

9.2.2. Planning and budgeting

Starting from the date of allocation the sub-project is subject to proper reflection for the purposes of planning and
budgeting under the Project.
For early stage of the sub-project implementation, the Procurement plan of a sub-project becomes a basis for planning and
budgeting. Following the completed tender procedures, actual contractual commitments and progress under contracts
become the basis for proper planning and budgeting under the sub-project.
To ensure proper planning and budgeting at the sub-project level, accounting records will be maintained by the financial
specialist of each PIU for its respective sub-project based on a common standard for all the UUPTP sub-projects. The
accounting records for the sub-project will be maintained on a set of accounts, segregated from other activities of the PIU,
in an automated accounting system available at PIU and accessible for audits by the PMSU and EIB at any time.

44
To ensure proper planning and budgeting at the Project-level, the PMSU will keep records for the UUPTP, and separately
for each sub-project and TA. Accounting records will be kept on a cash basis, with additional disclosure of commitments.
The PMSU should develop a customized accounting system for the UUPTP which will have wide functionality and allows
keeping detailed records of all project transactions by sector, by contract, in multiple currencies, etc.
Specifically, the following is required:
 At sub-project level, the PIU prepares and submits to the PMSU and the Final Beneficiary:
o payment plan (quarterly, by the 20th January, 10th April, July, October);
o Proposals regarding amounts necessary to cover the VAT payments and/or any other taxes/duties (annually,
according to the procedure of local budget preparation);
o Proposals regarding amounts needed to be secured in the local budget and/or State Budget of Ukraine in
order to ensure proper implementation of a sub-project (annually, according to the procedure of State Budget
of Ukraine preparation).
At Project level, the PMSU:
o Consolidates if requested by the Steering Committee, the MoF and/or the MoI sub-project payment plans
and Disbursement Schedule and submits the latter to MoI and MoF (quarterly, by the 30th January, 20th
April, July, October).
o On the basis of up-to-date Disbursement Schedule, prepares Disbursement Request and submits it to the MoI
for further processing (as required);
o Consolidates needs for VAT payments and/or any other taxes/duties and provides these at the request of the
Steering Committee, the MoF and/or the MoI (annually) based on the most recent reports produced by the
PIUs;
o Consolidates the proposals for the UUPTP State Budget line and submits these to the MoI for further
processing (annually, according to the procedure of State Budget of Ukraine preparation).
The above-mentioned information/documents may be requested to be updated at any point in time by a separate request
from the Bank, MoI and/or MoF.
UUPTP financial management and accounting is based on the following principles:
 Final Beneficiaries ensure to keep their accounting records to fully reflect the operations relating to the financing,
execution and operation of its sub-project according to the Ukrainian accounting/budgetary standards.
 Currency of transactions requirement: all transactions shall be recorded by the Final Beneficiary in national
currency (Ukrainian Hryvnia, UAH); in transaction currency, and in Euro equivalent. If the transaction currency is
Ukrainian Hryvnia or Euro, 2 values are recorded: value in transaction currency (UAH or EUR) and its equivalent
(UAH or EUR), if the transaction currency is different (not UAH and not EUR), 3 values are recorded: value in
transaction currency, its equivalent in UAH and its equivalent in EUR. Financial Management system also should
allow recording both NBU exchange rate and commercial exchange rate for hard currencies sale/purchase
transactions.
 Language: accounting of financial transactions, reconciliation of accounts and financial reporting is done in
Ukrainian language. Translation of selected documents, if so requested by the Bank, is to be provided by the Final
Beneficiary.

45
  Sub-project accounting records are maintained by each PIU for its respective sub-project. The Sub-project/Project
accounts shall be separated from other activities of the PIU/MoF and are accessible for audits by the PMSU and the
EIB and/or appointed auditor companies/consultants at any time.
 The PMSU keeps financial records for the Project and separately for each sub-project, including sub-project related
investment grant and/or technical assistance (if applicable) based on the information provided by the Final
Beneficiaries. The PMSU should develop a customized financial system for the UUPTP Programme, which will
allow keeping detailed records of all Project transactions by sub-project and by contract with currency requirement
applied.
UUPTP financial management and accounting shall be based on the following principles:
(1) Basis of Accounting: Cash basis accounting shall be used for financial transaction recording; expenses are deducted
in the fiscal period they are incurred, and paid.
(2) Rules and regulations: The Generally Accepted Accounting Standards (GAAP) shall be applied in respect to
International Accounting Standards.
(3) Language: The language applied in recording financial transactions, reconciliation of accounts and financial
reporting shall be bilingual (English and Ukrainian) as the Project is subject to audit and evaluations from EIB.

9.2.3. Preparation, processing and controlling of payment orders and supplementing documents
The PIU, in close cooperation with respective units of Final Beneficiary, ensures:
 Proper conclusion of contracts (and amendments to such contracts where relevant);
 Control over correctness and due form of submitted contract related financial documents:
o invoices
o contract’s guarantees (if appropriate);
o delivery-acceptance act for goods, works or services or construction related forms (KB-2v, KB-3);
o Variation orders, Claims, Contract amendments and Supervising engineers approval documents
 Preparation of payment orders and supplementing documents for further processing via the PMSU, the MoI, the
MoF and the servicing bank (see detailed description of the procedures in the section6.2 of the PPM).
The PMSU is responsible for providing advice on forms and substance of payment orders and supplementing documents,
procedures related to the processing of such documents and coordination when the documents are processed at the level of
the PMSU, the MoI, the MoF and/or the servicing bank.

9.2.4. Reporting
The following table summarizes the list of reports to be prepared by the PIUs and/or the PMSU during the implementation
of a Project (or upon its completion) in order to fulfil the requirements under the Finance Contract and under the CoM
Resolution 70.
Hard copies are to be signed by the Head of the respective PIU and stamped (at the level of the Final Beneficiary), by the
Project Coordinator (at the level of the MoI). Electronic versions are to be delivered by e-mail to the addresses, which are
notified by counterparties of the Project from time to time and are coordinated by the PMSU. In case of large volumes, the
information can be shared via discs.
The Steering Committee, the Bank, the MoI and/or the MoF may request any report of the list, a modified report or a new
one to be delivered at different point in the time that it is indicated in the table, or may request additional report to be

46
prepared (once or on a regular basis). In this case, the report is to be delivered within reasonable time period, mutually
agreed by the parties.
Table 12 List of reports to be prepared by the PIUs and/or the PMSU during implementation of a Programme (or upon
its completion)
Responsible Annex, Source of
Form for
Name of report for Addressee Frequency/ deadline providing Requirements to
submission
preparation template produce the report
Electronic
Summary of Quarterly, not later than 10
PIU PMSU and hard Annex 5 PPM
Expenditures January, April, July, October
copies
Procurement and
Disbursement Quarterly
electronic
Plan on PIU PMSU not later than 10 January, Annex 4 Finance Contract
version
Implementation of April, July, October
the sub-project
Procurement and
Disbursement Quarterly
electronic
Plan on PMSU/MoI MoF not later than 15 January, Annex 4 Finance Contract
version
Implementation of April, July, October
the Project

PMSU For each sub-project, 15

Implementation
PMSU days after approval of Annex 9 PPM
Monitoring Plan EIB allocation letter

Progress Report on PIU, Quarterly

electronic
sub-project Supervising PMSU not later than 20 January, Annex 10 PPM
version
implementation Engineer April, July October
Semi-annually
Progress Report on not later than 10 February,
electronic 20 July. The first report is to
Project PMSU/MoI EIB Annex 10 Finance Contract
version be delivered not later than 6
implementation
months after the date of
Effectiveness
Financial progress
Report on Flow of PIU/Supervi PMSU PPM and
electronic Quarterly, not later than 10
funds at special sing Annex 11
EIB version January, April, July, October CoM Resolution 70
accounts (sub- Engineer
project account)
Financial Progress
Report on Flow of
MoI Quarterly,
funds at special PPM and
electronic
accounts (EUR PMSU MoF not later than 15 January, Annex 11
version CoM Resolution 70
Collection April, July, October
EIB
Account and sub-
project Accounts)

Report on Flow of MoI MoF electronic Quarterly, not later than 10 Annex 11 CoM Resolution 70

47
 Responsible Annex, Source of
Form for
Name of report for Addressee Frequency/ deadline providing Requirements to
submission
preparation template produce the report
Funds at Special EIB version January, April, July, October
Account
MoI Quarterly,
Report on Loan electronic
PMSU MoF 25 January, April, July, Annex 12 CoM Resolution 70
utilization version
EIB October

Servicing and PPM

Quarterly,
Repayment of a MoF of Ukraine
electronic
sub-loan by Final PIU PMSU 15 January, Annex 13 Order 07/14/2016,
version
Beneficiary, on No. 616
10 April, July, October
cumulative basis

Servicing and Quarterly, CoM Resolution 70

Repayment of the MoI Electronic
PMSU 25 January, Annex 13 MoF of Ukraine
Loan on MoF version Order 07/14/2016,
cumulative basis 25 April, July, October No. 616
Hard
Sub-project PMSU copy and 12 months after completion
PIU Annex 9 PPM
Completion Report EIB electronic of works
version
Project Electroni 15 months after completion
MoI EIB Annex 10 Finance Contract
Completion Report c version of works
Draft
MoI 3 years after completion of Finance Contract and
Final Project document
CoM Project or earlier at the Annex 10
Completion Report MoF s for CoM Resolution 70
request of CoM
signature

9.2.5. Audit of Programme Accounts

Annual audits of Project accounts are required according to the provisions of the Finance Contract. Sub-project audit
reports will need to be publically disclosed by the MoI (Management letters issued by auditors are excluded from this
requirement).
Audit reports should cover the EUR Collection Account and all the sub-projects accounts, opened in all the currencies. The
requirements for audits of accounts/sub-projects under investment grants and TAs are assumed to be set by respective grant
agreements and agreements on technical assistance.
The MoF shall request from the Final Beneficiaries to reimburse the costs of the audits. The calculation of amounts for
reimbursement is expected to be done by the MoF.

48
Annex 1. Project Management Support Unit

PMSU role and responsibilities

The PMSU is responsible for UUPTP implementation related activities, including disbursements, procurement, financial
management, environmental and social safeguards, assistance in UUPTP coordination and general monitoring of the
implementation on day-to-day basis.
The PMSU is also responsible for overall Project coordination, monitoring and reporting and for support to the PIUs in
implementation of the sub-projects in procurement, financial management, and other aspects to the extent required, in
communication with EIB.
The PMSU will comprise MoI staff. The PMSU will be supported by a separate team of consultants. In case of necessity
special experts can be invited from other ministries as non-permanent members of the PMSU (for social environmental
impact issues from Ministry of Ecology and Natural Resources, for legal question from Ministry of Justice, etc). A
preliminary indication of the division of responsibility between the MoI team and the consultants for key tasks and
responsibilities is given in the table below.
-Overall Project management
PMSU Consultants Shared
Build capacity of MoI to effectively manage the UUPTP through improved knowledge,
X
techniques and procedures
Set up Project management structures and update the Project Procedures Manual (PPM)
X
and other procedures related to the UUPTP framework loan
Preparation of allocation requests under the UUPTP framework loan and/or financing
X
Project of other IFIs
Verification of compliance of projects with EIB standards and standards of other IFIs (if
X
applicable)
Develop transparent and effective management and reporting tools for Project progress
X
and financial monitoring and control
Establish Project budget and cash-flow administration routines and tools, including
X
reporting and making disbursement requests
Coordinate information exchange between stakeholders (MoI, MoF, EIB, IFIs),project
promoters (city councils or municipally owned transport companies),Municipalities,,
X
transport municipal companies, public) in order to facilitate timely decision-making on
Project and sub-projects level
Report on Project progress to EIB, SC and MoI leadership and other stakeholders and
X
inform about issues of concern
Regular reporting to the EIB concerning allocation, implementation and monitoring
X
activities
Establish an effective public communication channel, e.g. a dedicated web-page of MoI
X
website

Project pipeline
PMSU Consultants Shared
Establish and maintain a project pipeline both for short and medium term
implementation, in particular develop allocation requests, procurement plan,
X
implementation plan, disbursement plan, financial plan, including cash flow
plan, risk management etc.

49
Monitor the UUPTP pipeline and its sub-projects, establish UUPTP and sub-
projects scope, budget need for technical assistance, monitoring indicators, X
timeline and responsible parties
Contribute to create Project and sub-projects ownership among potential Final
X
Beneficiaries.
Advice MoI/PMSU and Final Beneficiaries on the potential investment
X
additional costs of a sub-project.

Sub-project preparation
MoI Consultants Shared
staff
Estimate sub-projects’ needs for technical assistance at preparation stage X
Assess preliminary information for financial, economic, social and
environmental additional effects created by new sub-projects or modernizing the X
existing ones
Support PIUs in preparing detailed technical assistance work plan leading to
X
finalisation of sub-projects
Support PIUs in preparing Terms of Reference and tender documents for
X
technical assistance services
Support PIUs in procuring technical assistance services X
Support PIUs in ensuring timely and quality delivery of the technical assistance
X
services
Review outputs of technical assistance and propose corrective action when
X
required
Support PIU in properly assessing environmental impact and social benefits, as
well as gender considerations in respect of Ukrainian legislation and the EIB X
Environmental and Social standards as referred to in Section3.4.1 above. )
Support sub-project promoters in their efforts in accessing grants from national/
X
international sources

Sub-project implementation
MoI Consultants Shared
staff
Develop detailed Procurement Plan and Implementation Plan for the sub-projects
X
listed in the Allocation request (submitted to be financed within the Project)
Develop tender dossier templates for each type of the sub-project
X
(national/international bidding procedures)
Instruct PMSU and PIUs through manual and/or workshops on the sub-project
implementation procedures for all cycle of the sub-project implementation –
X
procurement, contract award & contract management, financial flows (invoices),
technical supervision, commissioning and monitoring procedures etc.
Evaluate needs for technical assistance at implementation stage X
Support PIUs in preparing detailed technical assistance work plan leading to sub-
X
project implementation to support the relevant public authority
Support PIUs in preparing Terms of Reference and tender documents for X

50
technical assistance services during implementation
Support PIUs in procuring technical assistance services in compliance with the
X
requirements set out in the UUPTP Finance Contract and PPM
Support PIUs in the procurement of goods, works and services X
Conduct on-the-job and formal workshop training in matters of procurement X
Support PIUs in sub-projects implementation monitoring and risk management X
Support PIUs in monitoring/follow up of sub-project compliance with loan
X
conditions and reporting requirements

Monitoring
MoI Consultants Shared
staff
Jointly with the EIB and MoI, establish an Implementation Monitoring Plan to
address monitoring needs individually for each sub-project under UUPTP and X
update information quarterly
Monitoring/reporting of sub-project final preparation and implementation X
Monitoring/reporting of the Ukraine regulatory requirements for approval and
X
disbursement of investment funds
Creation of design supervision/value engineering/capacity building mechanism,
X
including focus on value for money, good planning and energy efficient design
Identify barriers to successful implementation of the sub-projects and discuss
with PMSU and EIB the lessons learnt to be considered and accounted for in X
future.

PMSU members
Based on the best Project implementation practices, it is anticipated that the PMSU will consist, but not be limited to the
following fulltime staff (as agreed with EIB): Project Manager, (i) procurement specialist, (ii) engineer, (iii) environmental
specialist (not a permanent member of the PMSU and can be a staff of other authority), (iv) monitoring and evaluation (v)
specialist, financial management specialist, accountant and (vi) assistant. Other staff can be involved on short and medium-
term basis as needed. The degree of involvement of staff may be discussed during the start-up period.
The basic responsibilities of these PMSU members are discussed below:
The PMSU Project Manager shall supervise and take part in day-to-day operational activities relating to UUPTP,
including procurements and financial management.
Detailed responsibilities of the Project Manager shall include at least the following:
- coordination and management of PMSU staff and resources, including quality control of activities carried out under
UUPTP;
- operational communication with Project stakeholders from MoI, MoF, PIUs and other institutions;
- short-term and long-term planning, supervision and overall responsibility for implementation of the Project;
- permanent coordination and guidance of PIUs to ensure sub-projects are prepared and implemented according to
the agreed schedule of UUPTP implementation;
- monitoring of main tasks and activities of PIUs

51
 - management of PMSU budget, including formulation of budget requests and management of financial resources;
- liaisons and cooperation with the EIB and overall responsibility for implementation of UUPTP, reporting,
monitoring and assessment;
- other activities that may be required under UUPTP.

The Procurement Specialist(s) main responsibility will be supervision of procurement processes on sub-project level to
ensure compliance with EIB’s rules and procedures in procurements under UUPTP and provisions of required support to
PIUs. The Procurement Specialist shall support and monitor procurement activities, preparation of Procurement Plans and
procurement related sub-project documentation together with the PMSU Project Manager.
Detailed responsibilities of the Procurement Specialist shall include at least the following:
- analysis of all UUPTP and sub-projects related activities for procurement related issues;
- checking of all procurement documents prepared by the PIUs under UUPTP;
- provision to the PIUs of required recommendations in preparation/drafting of technical specifications, drawing and
technical requirements to be further included in bidding documents under the sub-project;
- provision to the PIUs of required recommendations in preparation/drafting of bidding documents and bid evaluation
reports under the sub-project;
- review of draft bidding documents prepared by the PIUs and provision of comments/revision to prepared documents
prior to their submission for the EIB’s review and ‘no-objection’;
- planning, supervision and reporting of procurement activities under UUPTP;
- maintenance of databases and archiving of all procurement documentation under UUPTP relating to procurement of
goods and works, selection and employment of consultants;
- other activities that may be required under the sub-project.

Detailed responsibilities of the Engineer(s) shall include at least the following:

- analyse and review feasibility studies provided by the PIUs, identify any shortcomings, issue recommendations and
propose appropriate corrective measures, if needed
- analyse designs, technical specifications, performance requirements, terms of reference, technical evaluation reports
and other engineering output provided by the PIUs, identify any shortcomings, issue recommendations and propose
appropriate corrective measures, if needed;
- perform technical engineering inspections of the sub-projects for compliance with respective plans and
specifications and prepare written reports of inspections;
- review progress payments, change orders and monitor fulfilment of requirements of designs, state standards,
construction norms and regulations, including quality and scope of works performed under UUPTP contracts;
- analyse technical solutions selected for sub-projects and evaluate possible improvements as needed determining and
noting major and minor shortcomings and defects, and evaluating appropriate actions in order to remedy the
deficiencies as needed;

52
 - notify the PIUs and contractors if any unsafe conditions are observed at construction sites; report work not in
accordance with specifications and recommend work stoppage for non-compliance; consults with supervisors on
major deviations from specifications;
- maintain databases and records relating to technical aspects of contracts implemented under UUPTP, including
sketches, photographs, drafting, and narrative notes;
- other activities required during Project implementation.

Detailed responsibilities of the Environmental Specialist(s) shall include at least the following (not permanent member of
PMSU):
- analysis of sub-projects, identification of potential environmental effects of selected sub-projects and their
ecological category (classification) and type of required EA process and documents;
- support in the development of Environmental and Social Management Plan (ESMP);
- ensuring that the level of ESIA implemented by sub-projects meets the requirements of the EIB safeguard policies;
if EIB policies' requirements are more stringent than Ukrainian, EIB requirements must be followed;
- at a pre-construction stage, ensuring that all necessary permits for the proposed activities are in place;
- ensuring availability of required environmental documentation (Environmental Impact Assessment Report and/or
ESMP) for each selected sub-project;
- ensuring that financial plans of sub-projects include all required mitigation and supervisory measures;
- provision to contractors of full list of mandatory environmental requirements to be fulfilled prior to commencement
of the sub-project;
- checking of contractors’ bids for compliance with environmental requirements and identification of gaps not
covered by mitigation measures and/or budget;
- preparation of environmental clauses to be included in contracts for implementation of selected sub-projects;
- making sure that public consultation process on each proposed sub-project was properly organized and records of
the process available;
- supervision for implementation of mitigation measures identified in ESMP for each selected sub-project and
notification of MoI of recorded violations;
- ensuring implementation of the monitoring plan for each sub-project including establishing of baseline indicators
and efficiency of mitigation measures;
- preparation of semi-annual progress reports of planned measures implementation provided in ESMP for selected
sub-projects;
- preparation of semi-annual reports of environmental impacts caused by implementation of sub-projects and
efficiency analysis of mitigation measures taken to minimize negative consequences;
- preparation of recommendations and requirements for contractors’ reporting of environmental measures
implementation, monitoring plans implementation; analysis of submitted reports;

53
 - taking part in the presentation to public of results of mitigation and environmental protection measures taken during
performance of rehabilitation/reconstruction work;
- monitoring the situation with land acquisition and any potential cases of displacement that may be caused by the
sub-project and ensuring that appropriate resettlement instrument is prepared by the borrower and implemented
before the start of the works that require land acquisition;
- monitoring UUPTP related grievances and bringing the cases that were not resolved by PIU to PMSU and the EIB
if relevant;
- other activities required during UUPTP implementation.
Monitoring and Evaluation Specialist(s) shall be responsible for follow up of contracting under the UUPTP, monitoring
of performance of signed contracts and assessment of progress in achieving sub-project implementation indicators set by
EIB.
Detailed responsibilities of the Monitoring and Evaluation Specialist shall include at least the following:
- review/commenting/correction of draft contracts prior to their submission to EIB for review and approval or prior to
their signing in case of post-review;
- maintenance of databases and archiving of all contracts and amendments thereto signed under the UUPTP,
including copies of ‘no objections’ (approvals) issued by EIB for such contracts and amendments and other
documentation as required;
- assessment of progress of contracts signed under UUPTP;
- preparation or review/commenting/correction of existing internal resolutions, orders and instructions of MoI and/or
PMSU relating to implementation of UUPTP;
- preparation and submission of procurement reports as required by laws of Ukraine in effects and rules and
procedures of the EIB under the UUPTP;
- follow up of UUPTP monitoring and assessment indicators identified as well as other performance indicators
showing progress of UUPTP and grants implementation;
- follow up endorsement of recommendations and proposal issued by institutions in charge of inspecting UUPTP
implementation status as wells as decisions made under the Project;
- Other activities that may be required under UUPTP.

Detailed responsibilities of the Financial Management Specialist(s), Project Accountant shall include at least the
following:
- assistance to the PIUs in preparation of supporting documentation for disbursement applications in terms of forms
of documents, information required in documents etc.;
- assistance in implementation of UUPTP activities financed from the loan and grants proceeds;
- checking and approval of all documents relating to use of loan proceeds and submitted to MOI for processing of
payment;
- checking and approval of documents required for disbursement or replenishment of loan account;

54
 - preparation of UUPTP reports and analysis of financial activities conducted pursuant to approved Project budget;
- preparation and timely submission of required financial reports relating to implementation of the UUPTP for review
by relevant stakeholders (EIB, MoF etc.);
- preparation of financial information to be incorporated in progress reports or upon request of PMSU Project
Manager;
- ensuring accuracy and validity of financial data submitted to EIB for prompt reconciliation of balances on special
accounts;
- collection and consolidation (if needed) of financial plans of Final Beneficiaries;
- Other activities that may be required under UUPTP.
Requirements for the Accountant specialist
- organization and performance of accounting of financial transactions under UUPTP (loans and grants), including
preparation of corresponding reports;
- performance of accounting pursuant to national legislation in effect, including special statutory regulations of
financial institutions’ activity;
- preparation of all financial reports under the UUPTP required by the national legislation in effect and submission of
such reports to corresponding institutions (MoI, MoF, State Treasury and others);
- preparation of documents, forms and reports required by the Budget Code of Ukraine;
- preparing all the required documents for disbursements of special accounts;
- provision of consultations and assistance to the Finance Department of MoI;
- reflection of all UUPTP related transactions in terms of accounting, including further preparation of corresponding
reports;
- collection and consolidation of information concerning repayment schedule of the loans;
- preparation of financial information to be incorporated in progress reports or upon request of PMSU Project
Manager;
- creation and updating of financial management files/records and payments under UUPTP;
- other activities that may be required under UUPTP.

PMSU Assistants and other short and medium-term Consultants (technical, financial, procurement-related, translation
and other) will be hired if needed. Respective detailed responsibilities will be provided in their contracts.

55
Annex 2. Conditions of disbursement under the EIB Finance Contract

Condition Entity responsible

1.04 Conditions of disbursement

1.04A First Tranche

The disbursement of the first Tranche under Article 1.02 is conditional upon receipt by the
Bank, in form and substance satisfactory to it, on or before the date falling 7 (seven)
Business Days before the Scheduled Disbursement Date, of the following documents or
evidence:
(a) a legal opinion issued by the Ministry of Justice of the Borrower in the English
language on the due execution of this Contract by the Borrower and the validity,
enforceability and binding nature of this Contract. Such opinion shall be in form and
substance acceptable to the Bank and shall be supported by the relevant documents
evidencing the Borrower's authority to enter into this Contract, a confirmation that
Ministry of Justice
ratification of this Contract by the Parliament of Ukraine is necessary for the Contract to
have effect under the laws of Ukraine as well as evidence of due ratification of this Contract
in accordance with the applicable laws of Ukraine, and a confirmation on the legal, valid,
binding and enforceable nature of the Framework Agreement under Ukrainian law
(responsible authority – Ministry of Justice);
(b) evidence that no consent under any exchange control laws and regulations
applicable in Ukraine is necessary to permit the Borrower to receive disbursements as
provided in this Contract, to repay the disbursed Tranches in accordance with the terms of
Ministry of Finance
this Contract and to pay interest and all other amounts due hereunder, including the opening
and maintenance of the accounts to which the Borrower directs the Bank to disburse the
Credit (responsible authority – Ministry of Finance);
(c) evidence confirming that the rights of the Parties under the Contract are not affected
by the implementation of the Debt Operation and that the statements made by the Borrower
in the MoF Letter continue to be true and correct in all respects by reference to the Ministry of Finance
applicable laws and regulations of Ukraine regulating the Debt Operation (responsible
authority – Ministry of Finance);
(d) evidence that the PMSU:
(i) is fully functional within the Ministry of Infrastructure(with participation from other
relevant ministries of Ukraine) to the satisfaction of the Bank, with sufficient human
resources with adequate skills, terms of reference, authority and technical support to assume
responsibility for allocation requests, monitoring, implementation and progress reporting on Ministry of Infrastructure
the Project; and
(ii) has assumed responsibility for the allocation requests, monitoring, implementation
and progress reporting relating to funding under this Contract;

56
(e) evidence that a steering committee (the “Steering Committee”) has been duly
established on terms satisfactory to the Bank, including:
(i) having competences:
(A) to make strategic recommendations;
(B) to endorse Sub-Project proposals during the screening phase;
(C) to propose Sub-Projects for signature of a Loan Fund Transfer Agreement and, if
applicable, a Project Implementation Agreement; and
Ministry of Infrastructure
(D) to facilitate and review the functioning of the PMSU and the progress of works
under the Project; and
(ii) comprising representatives of, inter alia, the Ministry of Infrastructure, the Ministry of
Finance and/or others as agreed by the Parties; and

(f) evidence that:

(i) the Steering Committee has reviewed and endorsed a project procedures
manual (the “PPM”) setting out, among other things:
a) the eligibility criteria of Sub-Projects for financing under this
Contract;
b) the description of technical support eligible for financing under this Ministry of Infrastructure
Contract; and
c) the role and competencies of the Steering Committee, the PMSU
and the PIUs; and
(ii) the PPM (in form and substance satisfactory to the Bank) has been approved by the
Ministry of Infrastructure.

1.04B Second and Subsequent Tranches

The disbursement of each Tranche under Article 1.02 following the first, is conditional
upon receipt by the Bank, in form and substance satisfactory to it, on or before the
date falling 7 (seven) Business Days before the Scheduled Disbursement Date,
evidence demonstrating that at least 60% (sixty per cent.) of the proceeds of all Ministry of Finance
previously disbursed Tranches have been made available to the Final Beneficiaries
pursuant to the relevant Loan Fund Transfer Agreements and applied towards the
eligible costs of the relevant Sub-Projects.
1.04C All Tranches
The disbursement of each Tranche under Article 1.02, including the first, is subject to the
following conditions:
(a) that the Bank has received in form and substance satisfactory to it, on or before the MoI and MoF
date falling 7 (seven) Business Days before the Scheduled Disbursement Date for the
proposed Tranche, the following documents or evidence:
(i) evidence demonstrating that the borrowing of the total amount of all Tranches Ministry of Finance

57
disbursed during the current fiscal year, including the Tranche the disbursement of which is
requested, has been approved in the budget of the Borrower for the current fiscal year;
(ii) evidence demonstrating that, following disbursement of the relevant Tranche, the
amount of the Loan will not exceed the aggregate eligible expenditure incurred or forecast
Ministry of Infrastructure
to be allocated in respect of the Project within six months of the relevant Disbursement
Offer;
(iii) a certificate from the Borrower in the form of Schedule C.2; Ministry of Finance
(iv) if the proposed Tranche is intended to be allocated, in whole or in part, to a Sub-
Project with a total investment cost equal to or exceeding EUR 50,000,000 (fifty million
euros), an original of a duly signed sub-project implementation agreement (the “Sub-
project Implementation Agreement”) between the Final Beneficiary implementing such
Ministry of Infrastructure,
Sub-Project, the Ministry of Infrastructure and the Ministry of Finance, setting out, among
other things, that Final Beneficiary’s undertakings with respect to such Sub-Project as may
be required by the Bank pursuant to the Bank’s approval granted with respect to such Sub-
Project under this Contract);
(v) evidence of the authority of the person or persons authorised to sign Disbursement
Ministry of Finance
Acceptances and the authenticated specimen signature of such person or persons;
(vi) evidence that all Authorisations necessary to proceed with the implementation of
each Sub-Project being financed by the Tranche sought in the Disbursement Offer have
been received and that, to the satisfaction of the Bank, all necessary authority and powers to Ministry of Infrastructure
operate each Sub-Project being financed and all necessary Authorisations in connection
with the Contract, have been received;
(vii) a copy of any other authorisation or other document, opinion or assurance which the
Bank has notified the Borrower is necessary or desirable in connection with the entry into To be determined
and performance of, and the transactions contemplated by, this Contract or the validity and following EIB’s request
enforceability of the same;
(viii) evidence of the payment of any fees or charges which have become due and payable Ministry of Finance if so
by the Borrower under this Contract; requested by EIB
(ix) the Bank being satisfied that appropriate technical support in accordance with the
terms of reference and personnel as approved by the Bank supporting the PMSU and Final
Ministry of Infrastructure
Beneficiaries implementing the Sub-Projects is in place or will be acquired from grants or
other committed funding sources; and
(x) evidence that the proceeds of such Tranche are needed to meet the funding
requirements in accordance with the most recent disbursement schedule and procurement Ministry of Finance
plan delivered by the Borrower to the Bank pursuant to Article 6.05(d)(vi).
(b) the Bank being satisfied by the Scheduled Disbursement Date for the proposed
Tranche that:
(i) all facts and information contained in the Recitals continue to be true, correct and
Ministry of Finance
applicable;
(ii) the representations and warranties which are repeated pursuant to Article 6.08 are Covered by Certificate C.2
correct in all respects; in the Finance Contract
(iii) the EU Guarantee is valid, binding and enforceable and that no events or
No documents required by
circumstances have occurred which could, in the reasonable opinion of the Bank, adversely
the Ministries
affect the legal, valid, binding and enforceable nature of the EU Guarantee, its applicability

58
to any Tranche under this Contract or the Bank’s right to make a demand there under;
(iv) Ukraine continues to be an Eligible Country; No documents required by
the Ministries
(v) the Framework Agreement is valid, binding and enforceable and that no events or
circumstances have occurred which could, in the opinion of the Bank, adversely affect the No documents required by
legal, valid, binding and enforceable nature of the Framework Agreement in the territory of the Ministries
the Borrower where the Sub-Projects are being carried out; and
(vi) no event or circumstance which constitutes or would with the passage of time or Covered by Certificate C.2
giving of notice under this Contract constitute: in the Finance Contract
(A) an Event of Default, or
(B) a Prepayment Event,
has occurred and is continuing un-remedied or un-waived or would result from the
proposed Tranche.

59
Annex 3. Template of Request for TA support

Request for TA support

1. General Information
Promoter name:
Address:
City: Postal code:
Contact person:
Function:
Telephone: E-mail:
2. Project information
Sub-project name:
Project identification number:
3. TA requested
TA sub-project working title
Scope of support requested

Rationale for requesting

support

Expected workload
Expected cost [EUR]:
[man-days]:
Expected start of assignment Expected completion of
date: assignment date:

signature stamp
4. Approval of PMSU
Name and surname:
Function:
Telephone: E-mail:

signature stamp

60
Annex 4. Samples of Procurement Plan
4.1 Sample of Procurement Plan for a Sub-project
APPROVED:
Head of PIU/PMSU
Ukraine Urban Public Transport Project
_____________________
[Name of Final Beneficiary]
_______________________
[Surname, name, patronymic.]
«_____» __________ 20___.
Procurement Plan
of «______» _______________ 20___.

Date for
Estimated Contract
Cities Contracts Contracts Procurement
Type cost, EUR, price, EUR, Documents Invitation Submission Contract Contract Bank’s prior/ Contract party
description number(s) method(s)
thousands thousands submitted for bids of bids conclusion completion post review
to EIB

TOTAL:

61
 4.2 Sample of Procurement plan for at the Project level APPROVED: Head of PMSU _____________________

_______________________
[Surname, name, patronymic.]

«_____» __________ 20___.

Ukraine Urban Public Transport Project

Date for
Estimated Contract
Cities Contracts Contracts Procurement
Type cost, EUR, price, EUR, Documents Invitation Submission Contract Contract Bank’s prior/ Contract party
description number(s) method(s)
thousands thousands submitted for bids of bids conclusion completion post review
to EIB

TOTAL:

62
Annex 5. Statement of expenditures (Example)

Project: Ukraine Urban public transport Project

Finance Contract: 85 103

Sub-Project: [Name]
Final Beneficiary: [Name]

Amount of
the DATE OF
Total
Invoices PAYMENT

CURRENCY

INVOICE NO
Balance of Amount of Amount of Amount of
for MADE (OR
CONTRACTOR / Date Contract payments the the Invoices the VAT
Description payment TO BE
SUPPLIER NAME Contract Price under Invoices for EIB EUR
by own MADE)
contract (excl. Disbursement equivalent
funds / co- TO
VAT)
financing / SUPPLIER
grants

Purchase and
installation of
Contractor ABC 01/01/2018 equipment 10,000,00 10,000,000 Euro 1 2,000,000 1,000,000 1,000,000 2,000,000 1,000,000

8,000,000 Euro 2 2,000,000 1,000,000 1,000,000 2,000,000 1,000,000

63
Annex 6. Covenant of Integrity
To be submitted to:

PJ
Name SURNAME
Tel: number
e-mail: address

COVENANT OF INTEGRITY
to the Promoter
from a Tenderer, Contractor, Supplier or Consultant to be attached to its Tender
(or to the Contract in the case of a negotiated procedure)

“We declare and covenant that neither we nor anyone, including any of our directors, employees, agents,
joint venture partners or sub-contractors, where these exist, acting on our behalf with due authority or with
our knowledge or consent, or facilitated by us, has engaged, or will engage, in any Prohibited Conduct (as
defined below) in connection with the tendering process or in the execution or supply of any works, goods
or services for [specify the contract or tender invitation] (the “Contract”) and covenant to so inform you if
any instance of any such Prohibited Conduct shall come to the attention of any person in our organisation
having responsibility for ensuring compliance with this Covenant.

We shall, for the duration of the tender process and, if we are successful in our tender, for the duration of the
Contract, appoint and maintain in office an officer, who shall be a person reasonably satisfactory to you and
to whom you shall have full and immediate access, having the duty, and the necessary powers, to ensure
compliance with this Covenant.

If (i) we have been, or any such director, employee, agent or joint venture partner, where this exists, acting
as aforesaid has been, convicted in any court of any offence involving a Prohibited Conduct in connection
with any tendering process or provision of works, goods or services during the five years immediately
preceding the date of this Covenant, or (ii) any such director, employee, agent or a representative of a joint
venture partner, where this exists, has been dismissed or has resigned from any employment on the grounds
of being implicated in any Prohibited Conduct, or (iii) we have been, or any of our directors, employees,
agents or joint venture partners, where these exist, acting as aforesaid has been excluded by the EU
Institutions or any major Multi-lateral Development Bank (including World Bank Group, African
Development Bank, Asian Development Bank, European Bank for Reconstruction and Development,
European Investment Bank or Inter-American Development Bank) from participation in a tendering
procedure on the grounds of Prohibited Conduct, we give details of that conviction, dismissal or resignation,
or exclusion below, together with details of the measures that we have taken, or shall take, to ensure that
neither this company nor any of our directors, employees or agents commits any Prohibited Conduct in
connection with the Contract [give details if necessary].

64
In the event that we are awarded the Contract, we grant the Project Owner, the European Investment Bank
(EIB) and auditors appointed by either of them, as well as any authority or European Union institution or
body having competence under European Union law, the right of inspection of our records and those of all
our sub-contractors under the Contract. We accept to preserve these records generally in accordance with
applicable law but in any case for at least six years from the date of substantial performance of the contract.”

For the purpose of this Covenant, Prohibited Conduct includes12:

 Corrupt Practice is the offering, giving, receiving or soliciting, directly or indirectly, anything of
value to influence improperly the actions of another party.
 Fraudulent Practice is any act or omission, including a misrepresentation, that knowingly or
recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid
an obligation.
 Coercive Practice is impairing or harming, or threatening to impair or harm, directly or indirectly,
any party or the property of any party to influence improperly the actions of a party.
 Collusive Practice is an arrangement between two or more parties designed to achieve an improper
purpose, including influencing improperly the actions of another party
 Obstructive Practice is (a) deliberately destroying, falsifying, altering or concealing of evidence
material to
 the investigation; and/or threatening, harassing or intimidating any party to prevent it from
disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation,
or (b) acts intended to materially impede the exercise of the EIB’s contractual rights of audit or
access to information or the rights that any banking, regulatory or examining authority or other
equivalent body of the European Union or of its Member States may have in accordance with any
law regulation or treaty or pursuant to any agreement into which the EIB has entered in order to
implement such law, regulation or treaty;
 Money Laundering is defined in EIB’s Anti-Fraud Policy
 Terrorist Financing is defined in EIB’s Anti-Fraud Policy
 Project Owner means the person designated as such in the tender documents or the Contract.

Note: This Covenant must be sent to EIB together with the contract in the case of an international
procurement procedure (as defined in article 3.3.2). In other cases, it must be kept by the promoter and
available upon request from EIB. The Covenant is not mandatory for contracts awarded prior to Bank
involvement in the project. Nevertheless, promoters who are seeking or may seek EIB involvement in a
project are advised to include it in order to promote integrity among the tenderers/contractors. This is
particularly relevant in the case of a promoter who has already implemented a number of previous Bank
financed projects and is considering further EIB financing.

12
Most definitions are those of the IFI Anti-Corruption Task Force’s Uniform Framework of September 2006

65
Annex 7. Standard notification letters and documents

To be developed by the PMSU.

66
Annex 8. Distribution of rights and responsibilities of key stakeholders under UUPTP

MPSF
Ministry of Ministry of Steering
Activity EIB/IFIs (TA Beneficiaries PMSU PIU
Infrastructure Finance Committee
funding)
Funding and staffing
Investment financing Provide loan On-lend funds
financing to
Beneficiaries
TA funding Provide Manage TA funds Provide data for TA application
TA funds to PIUs
Staff provision UUPTP UUPTP
representative representative
PIU Members
PMSU PMSU
Members Members
Technical and contractual Procedures
Consultant Approve Support PIU Prepare standards Prepare ToR; Manage
procurement/manageme ToRs as CA ToR Templates; preparation/implementation
nt review ToR; consultants
Support PIU in
consultant
management
Sub-project Sub-project Monitor sub- Support PIU Monitor and Sub-project preparation
preparation (feasibility due project as CA support sub-
study etc.) diligence preparation project
preparation
Review
documentatio

67
 n
Design and tendering Design Monitor Design Support PIU Monitor and Design and tendering
(works) review; and as CA support Design
procurement procurement and tendering
monitoring
Sub-project Technical Monitor sub- Support PIU Monitor Monitor and Sub-project implementation
implementation audits; project as CA UUPTP support sub-
develop implementation and sub- project
standard projects implementation
contracts progress
Transport Sector Initiate and Support Initiate and
Development Plan support transport sector support transport
Transport studies etc. sector studies etc.
sector
studies etc.
Budget and financial procedures
Budgeting and cash On-lending to Support PIU Monitor budgeting, budgeting, updating cash flow
flows the as CA Project updating cash projections and disbursement
Beneficiaries. budget and flow projections forecasts at the sub-project level
Monitor cash flow and disbursement
Project budget forecast at the
status, cash UUPTP level;
flow review/endorse
projections disbursement and
and allocation request
disbursement at the sub-project
forecast level
Financial Approve Monitor Support PIU Endorse Budget and Budget and financial administration
administration allocations, financial as CA sub- financial at the sub-project level.
disbursements administration projects administration at
at the Project budget and the UUPTP level.
level financial Monitor financial
administration at
68
 procedures the sub-project
level
Monitoring and reporting
Construction Monitor Monitor PIU Support PIU in Procure and monitor supervising
supervision procurement as CA construction engineers
of supervision
supervising
engineers
Sub-project Monitor Monitor sub- Monitor sub- Monitor PIU Monitor Support PIU in Monitor sub-project progress
monitoring and sub-projects projects projects as CA sub- sub-project together with supervisors
reporting progress progress progress projects progress
progress monitoring and
reporting
UUPTP monitoring Monitor Monitor Monitor Monitor UUPTP progress
and reporting UUPTP UUPTP UUPTP UUPTP monitoring and
progress progress progress progress; reporting
address
UUPTP
needs and
issues and
solve
disputes
Financial monitoring Budget and Budget and Monitor PIU Budget and Budget and Budget and financial reporting at
and reporting financial financial as CA financial financial reporting the sub- project level
monitoring monitoring at monitoring at the UUPTP
at the the UUPTP at the level;
UUPTP and sub- UUPTP
Budget and
level projects level level
financial
monitoring at the
sub-projects level

69
Annex 9. Additional Information on Reporting Requirements and UUPTP monitoring
indicators

9.1 Progress reports

UUPTP progress reports are to be submitted annually, with the first report to be submitted six
months from the signature of the finance contract. Content of the report is listed below.
 A brief update on the allocation process, explaining the reasons for significant changes vs.
initial scope;
 A brief update on the effectiveness of technical assistance and identification of further
technical assistance requirements;
 Update on the date of completion of each of the main sub-projects, explaining reasons for
any possible delay;
 Update on the costs of the sub-projects, explaining reasons for any possible cost variations
vs. initial budgeted cost;
 A description of any major issue with social or environmental impacts;
 Update on procurement procedures;
 Update on the sub-projects’ demand or usage;
 Comment on any significant issues or risks that may affect the Project and sub-projects’
operation;
 Comment on any legal actions concerning the sub-projects that may be on-going.

9.2 Completion report

A UUPTP completion report is to be submitted 15 months after completion of works, supplies
delivery and services performed. Content of the report is listed below:
 A final description of the allocation process as completed, explaining the reasons for any
significant change compared to the initial scope;
 The date of completion of each of the sub-projects, explaining reasons for any possible
delay;
 The final cost of the sub-projects, explaining reasons for any possible cost variations vs.
initial budgeted cost;
 Employment effects of the sub-projects: person-days required during implementation as
well as permanent new jobs created;
 A description of any major issue with social or environment impacts;
 Update on procurement procedures;
 Update on the sub-projects’ demand or usage;
 Comments on any significant issue or risk that may affect the UUPTP and the sub-project’s
operation;
 Comments on any legal actions concerning the sub-projects that may be on-going;
70
  Statement about any possible delay, reasons, and remedy actions or recommendations;
 Update on the UUPTP monitoring indicators summarised in 9.4 below.

9.3 Monitoring
The sub-project and Project monitoring aims at:
- Providing constant feedback on the extent to which the projects are achieving their goals.;
- Identifying potential problems at an early stage and propose possible solutions;
- Monitoring the accessibility of the project to all sectors of the target population;
- Monitoring the efficiency with which the different components of the project are being
implemented and suggest improvements.
- Evaluating the extent to which the project is able to achieve its general objectives;
- Incorporating views of stakeholders;
- Showing or not need for mid-course corrections
- Eventually providing lessons and guidelines for the planning of future projects and
influencing the sector assistance strategy
Monitoring reports are part of Project Progress Reporting
Examples of table of contents are provided below: The attached reports provide information on the
progress of the project in terms of financial activity, key output measures, and the status of
procurement.
Example 1
Contents
1. Discussion of Project Progress
2. Sources and Uses of Funds Statement
3. Uses of Funds by Project Activities (supports the Sources/Uses of Funds)
4. Physical Progress Report - physical outputs
5. Physical Progress Report - status of large works and services
6. Procurement Monitoring Report - narrative and tables
Example 2
Contents
1. Discussion of Project Progress (including procurement issues)
2. Statement of Receipts and Payments
3. Uses of Funds by Project Activities
4. Output Monitoring (Physical Progress) Report
5. Procurement Status Report – Goods, Services and Works
71
9.4 Choice of indicators
The process of selecting indicators for monitoring is a test of the soundness of project objectives
and can lead to improvements in project design.
a) Core indicators for all sectors
Employment during construction Person Years
Employment – additional direct jobs during operation FTE
Number of passengers (passengers journeys, passengers kilometres) For each route in million
Estimates of normalised passenger CO2 emission
Gram kilometre
PSC Yes/No
Improvement of (multi) modal shift %
Improved access to public transport Distance to station
Energy savings MW

b) Monitoring indicators for Renewal of Rolling Stock

Outputs Unit
Purchased units (per type i.e. trolleybuses, tramways, buses, coaches and
Number
locomotives for metro)
Average age of rolling stock fleet (before and after the sub-project)
years
Energy savings with new equipment MW
Comfort of new equipment, including noise reduction assessment
Access for low mobility and elderly persons Yes/No
Supporting Infrastructure condition improvements Track, catenaries and overhead,
stations
Number of staff employed in the transport company before and after the sub-
Number
project
Number and length of route using electricity propelled vehicles instead of
Km
internal combustion engine
Staff improved qualification to use the rehabilitated equipment Training (Hours per person)
Estimates of normalised passenger CO2 emission CO 2 g per passenger/km travelled
New connections to the sub-project transport network Number
Number of passengers kilometres on the sub-project route(s) Pass/km
Average item occupancy rate (week and week-end) Per cent
Public Service Contract between the Transport Authority and the final
Beneficiary Yes/No

Outcomes Unit
Network extension or rationalisation Kilometres and number of multimodal
connections

72
Improved urban and/or per urban mobility Number of passengers/km, number of stations
Decrease in Travel time for passengers Minutes/hour
Sustainable ticket price Cost of travel
Decreased local (city) pollution CO 2 at the City level
Improved Road safety (more use of Public transport) Number of fatalities per year
Improved reliability and punctuality of public transport Time schedule compliance
Decrease in Maintenance Cost kUAH
Final operating costs for the Transport Authority (municipality) kUAH

c) Monitoring indicators Capital Rehabilitation of Rolling Stock

Outputs Unit
Number of rehabilitated units (per type i.e. trolleybuses, tramways, buses,
number
coaches and locomotives for metro)
Average age of rolling stock fleet (before and after the project)
years
Lifespan of the renovated items versus new and cost difference Years/ k UAH
Energy savings with rehabilitated equipment MW
Comfort of rehabilitated equipment, including noise reduction Assessment and Db
Access for disable and elderly persons Yes/No
Supporting Infrastructure condition improvements Track, catenaries and overhead,
stations
Number of staff employed in the transport company before and after the sub-
Number
project
Number and length of route using electricity propelled vehicles instead of
Km
internal combustion engine
Staff improved qualification to use the rehabilitated equipment Training (Hours per person)
Estimates of normalised passenger CO2 emission CO 2 g per passenger-km travelled
New connections to the sub-project transport network Number
Number of passengers kilometres on the sub-project route(s) Pass/km
Average item occupancy rate (week and week-end) Per cent
Public Service Contract between the Transport Authority and the final
Yes/No
Beneficiary

Outcomes Unit
Network extension or rationalisation Kilometres and number of multimodal connections
73
 Improved urban and/or peri urban mobility Number of passenger/km, number of stations
Decrease in Travel time for passengers Minutes/hour
Sustainable ticket price Cost of travel
Decreased local (city) pollution CO 2 at the City level
Improved Road safety (more use of Public transport) Number of fatalities per year
Improved reliability and punctuality of public transport Time schedule compliance
Decrease in Maintenance Cost K UAH
Final operating costs for the Transport Authority
K UAH
(municipality)

d) Monitoring indicators Infrastructure rehabilitation – tracks, catenaries, depots, stations

Outputs Unit
Number of rehabilitated units (per type i.e tracks, catenaries, depots,
Km, number
stations)
Average age of items to be renovated
years
Operation Delays due to Rail Breakdowns number
Lifespan of the renovated items years
Energy savings with rehabilitated equipment MW
CO 2 g per passenger/km travelled
Estimates of normalised passenger CO2 emission reduction
Number of staff employed in the transport company before, during and after
Number
the sub-project
Number and length of route using electricity propelled vehicles instead of
Km
internal combustion engine
Staff improved qualification to use the rehabilitated equipment Training (Hours per person)
Access to public transport Number of people within 0.5 km of
public transit
New connections to the project transport network Number
Number of passengers kilometres on the project route(s) Pass/km
Public Service Contract between the Transport Authority and the final
Yes/No
Beneficiary

Outcomes Unit
Network extension or rationalisation Kilometres and number of multimodal
connections
Improved urban and/or peri urban mobility Number of passenger/km, number of
stations

74
Decrease in Travel time for passengers Minutes/hour
Sustainable ticket price Cost of travel
Decreased local (city) pollution CO 2 at the City level
Improved Road safety (more use of Public transport) Number of fatalities per year
Improved reliability and punctuality of public transport Time schedule compliance
Decrease in Operation and Maintenance Cost kUAH
Final operating costs for the Transport Authority (municipality) kUAH

e) Monitoring indicators Infrastructure development – new tram tracks, catenaries,

depots, stations, supply and installation of information and ticket collection systems
Outputs Unit
Number of units (per type i.e. new tram tracks, catenaries, depots, stations) Km, number
CO 2 increase with the setting-up (construction) of new tracks
CO 2 tons per year
CO 2 decrease with new infrastructure in use CO2 per year tons
Lifespan of the new items Years
Energy savings with new equipment KW
Access for low mobility and elderly persons (stations) Yes/No
Number of staff employed during the sub- project implementation Number PTE
Number and length of route using electricity propelled vehicles instead of internal
Number and Km
combustion engine
Staff improved qualification to use the rehabilitated equipment Training (Hours per person)
Estimates of normalised passenger CO2 emission CO 2 g per passenger-km
travelled
New connections to the sub-project transport network Number
Improved reliability and punctuality of public transport Time schedule compliance
Number of passengers kilometres on the sub-project route(s) Passengers/km
Ticketing system

Fare media devices to read/write media Number

Depot/station computers Number
Back office systems Yes/No

Yes/No
Central clearing house
Number of passengers still using the on-board ticket buying Number or per cent

75
Public Service Contract between the Transport Authority and the final Beneficiary Yes/No

Outcomes Unit
Network extension or rationalisation Kilometres and number of multimodal
connections
Improved urban and/or per urban mobility Number of passenger/km, number of stations
Sustainable ticket price Cost of travel
Plan for phasing out the use of cash ``on-board`` for purchasing a
Yes/No
ticket
Decreased local (city) pollution CO 2 at the City level tons per year
Increase of average travel distance per passenger Kilometre
Improved safety of the municipal transport public network Number of Accidents and incidents per year
Improved reliability and punctuality of public transport Time schedule compliance
Improved Road safety (more use of Public transport) Number of road transport fatalities per year
Decrease in Operation and Maintenance Cost kUAH
Final operating costs for the Transport Authority at the route level
kUAH
(municipality)

76
Annex 10 EIB Guide to procurement
Please see at :http://www.eib.org/infocentre/publications/all/guide-to-procurement.htm
.

77
 Annex 11

Certificate on foreign currency balances on current accounts opened at banks

for _______________ 20__

Codes
Undertaking__________________________________________________________________________________acc. to YeDRPOU13
Territory____________________________________________________________________________________acc. to KOATUU14
Entity type__________________________________________________________________________________ _acc. to KOPFH15
Code and title of departmental classification of state budget expenditure and crediting______________________________________
Code and title of standard departmental classification and crediting local budget expenditure_________________________________
Regularity: quarterly, annually.
в ___________________________________________________
Measurement unit: UAH, kopiyka.
Код та назва тимчасової класифікації видатків та кредитування місцевих бюджетів _________________________________________

Fund balance at the end of reporting period (year)

including
General FUND Special FUND
Name of Name of Bank other revenues of special
No Own revenues
Undertaking Institution Total fund
State Budget Funds
(local budget Total Group 2
funds) Including IFI
Group 1 Including Total
Total loans
grants

13
YeDRPOU- Single State Register for Entrepreneurs and Organizations of Ukraine
14
KOATUU – Classifier for Administrative and Territory Structure of Ukraine
15
KOPFH – Classifier for Legal Entity Types
78
TOTAL

Chief manager ____________________ _______________________________

(signature) (full name)
Chief accountant ____________________ _______________________________
(signature) (full name)
"___"_____________20___

79
Certificate on the balance of funds on other current accounts at bank institutions
for_______________ 20__ Codes

Undertaking________________________________________________________________________________acc. to YeDRPOU16
Territory____________________________________________________________________________________acc. to KOATUU17
Entity type____________________________________________________________________________________acc. to KOPFH18
Code and title of departmental classification of state budget expenditure and crediting______________________________________
Code and title of standard departmental classification local budget expenditure and crediting _________________________________
в ___________________________________________________
Regularity: quarterly, annually.
Код та назваunit:
Measurement тимчасової класифікації видатків та кредитування місцевих бюджетів _________________________________________
UAH, kopiyka.
No Name of bank institution Account # Amount Formation Sources Note
1

Total

Chief manager ____________________ _______________________________

(signature) (full name)
Chief accountant ____________________ _______________________________
(signature) (full name)
"___"_____________20___

16
YeDRPOU- Single State Register for Entrepreneurs and Organizations of Ukraine
17
KOATUU – Classifier for Administrative and Territory Structure of Ukraine
18
KOPFH – Classifier for Legal Entity Types
80
 Example of Report
On receipt and use of other receipts of the special fund
(form №4 – 3d, №4 – 3d)
for______________20__ Codes
Undertaking_________________________________________________________________________________________acc. to YeDRPOU19
Territory____________________________________________________________________________________________acc. to KOATUU20
Entity type____________________________________________________________________________________________acc. to KOPFH21
Code and title of departmental classification of state budget expenditure and crediting__________________________________________________
Code and title of program classification of state budget expenditure and crediting_____________________________________________________
Code and title of standard departmental classification of local budget expenditure and crediting __________________________________
Code and title of program classification of local budget expenditure and crediting (code and title of Standard Program Classification of local budget expenditure and
crediting /
Temporary Classification of expenditures and crediting for local self-governance budgets that do not use a target program method)
______________________________________________
Regularity: quarterly, annually.
Measurement unit: UAH, kopiyka.

19
YeDRPOU- Single State Register for Entrepreneurs and Organizations of Ukraine
20
KOATUU – Classifier for Administrative and Territory Structure of Ukraine
21
KOPFH – Classifier for Legal Entity Types
81
 Balance at the
Balance at the Cash for the
end of the
beginning of the reporting period
Funds reporting period
reporting year (year) Actual
KEKV received (year)
22 Code Approved Approved for the
Including Balance for the Including
Indicators of for reporting for reporting Including reportin
and/or at transferred reporting at
Row year period (year) transferre g period
KKK accounts period Tota accounts
Total Total d from (year)
at bank (year) l at bank
the bank
institutio institution
accounts
ns s

Expenditure and crediting - total Х 010

Including^
Current costs 2000 020
Remuneration and payroll 2100 030
charges
Remuneration 2110 040
Wages and salaries 2111 050
Military man pay service 2112 060
Payroll charges 2120 070
Use of goods and services 2200 080
Articles, materials, equipment and 2210 090
tools
Medicines and bandages 2220 100

22
KEKV – codes for budget expenditure economic classification
82
Foodstuffs 2230 110
Payment for services (except 2240 120
utilities)
Business trip costs 2250 130
Special purpose action costs 2260 140
Payment for utility services and 2270 150
energy carriers
Heat supply payment 2271 160
Water supply and water removal 2272 170
payment
Electric energy payment 2273 180
Natural gas payment 2274 190
Payment for other energy carriers 2275 200
Energy service payment 2276 210
Research and development, certain 2280 220
actions on implementing national
(regional) programs
Research and development, certain 2281 230
development actions on
implementing national (regional)
programs
Certain actions on implementing 2282 240
national (regional) programs not
assigned to the development actions

83
Debt commitment services 2400 250
Home debt commitment services 2410 260
Foreign debt commitment services 2420 270
Current transfers 2600 280
Subsidies and current transfers to 2610 290
enterprises (institutions,
organizations)
Current transfers to state 2620 300
governance bodies of other levels
Current transfers to foreign state 2630 310
governments and international
organizations
Social security 2700 320
Payment of pensions and aid 2710 330
Scholarships 2720 340
Other payments to the people 2730 350
Other current costs 2800 360
Capital costs 3000 370
Equity procurement 3100 380
Procurement of equipment and 3110 390
long-term assets
Capital construction 3120 400
(procurement))
Capital construction (procurement) 3121 410
of residence facilities

Capital construction (procurement) 3122 420

of other assets

84
Capital repairs 3130 430
Capital repairs of residential assets 3131 440
(premises)
Capital repairs of other facilities 3132 450
Rehabilitation and restoration 3140 460
Rehabilitation of residential assets 3141 470
(premises)
Rehabilitation and restoration of 3142 480
other facilities
Restoration of monuments of 3143 490
history, culture and architecture
Creation of public stock and 3150 500
reserves
Procurement of land and intangible 3160 510
assets
Capital transfers 3200 520
Capital transfers to enterprises 3210 530
(institutions, organizations)
Capital transfers to state 3220 540
governance bodies of other levels
Capital transfers to foreign state 3230 550
governments and international
organizations
Capital transfers to the people 3240 560

Internal crediting 4100 570

Granting internal credits 4110 580

Crediting state governance bodies 4111 590
of other levels

85
Crediting enterprises, institutions, 4112 600
organizations
Granting other internal credits 4113 610

Foreign crediting 4200 620

Granting foreign credits 4210 630

Other costs 5000 640 Х Х Х Х Х Х Х Х Х Х

1
To be filled by budget fund administrator.

Chief manager ____________________ _______________________________

(signature) (full name)
Chiefaccountant ____________________ _______________________________
(signature) (full name)
"___"_____________20___

86
 Register on the balance of general and special funds of the state (local) budget on registration (special registration), other accounts opened in the bodies
of the State Treasury Service of Ukraine, and current accounts opened at bank institutions
As at 1 January 20 ____
Institution_____________________________________________________________________

Regularity: annually.
Measurement unit: UAH, kopiyka.

Registration (special registration), other Name of State Treasury Service of Ukraine body, bank
No Balance Amount
and current account # institution

1
1
2
3
4
5
...
TOTAL

Chief manager ____________________ _______________________________

(signature) (full name)
Chief accountant ____________________ _______________________________
(signature) (full name)"___"_____________20___

87
 Annex 12

Certificate on the use of loans from foreign countries, banks and international financial institutions for the implementation of investment projects

for______________ 20__

Коди
Undertaking______________________________________________________________________________________acc. to YeDRPOU23
Territory_________________________________________________________________________________________acc. to KOATUU24
Entity type__________________________________________________________________________________________acc. to KOPFH25
Code and title of departmental classification of state budget expenditure and crediting______________________________________

Regularity: quarterly, annually.

Measurement unit: UAH, kopiyka.

23
YeDRPOU- Single State Register for Entrepreneurs and Organizations of Ukraine
24
KOATUU – Classifier for Administrative and Territory Structure of Ukraine
25
KOPFH – Classifier for Legal Entity Types
88
 Credit (loan)
Balance of funds received
funds at the Balance
Title of Code of Title according to for the
Amount of beginning of Credit (loan) of funds
investment program program reporting
attracted credit reporting year funds used at the
Name of project classification classification of Balance period (year)
(loan) in the (code of for the end of
Lender implemented out of state budget state budget transferred
reporting year, budget (code of reporting reporting
of loan (credit) expenditure expenditure and
as amended classification budget period (year) period
funds and crediting crediting
classification (year)
602100)
401201)

TOTAL

Chief manager ____________________ _______________________________

(signature) (full name)
Chief accountant ____________________ _______________________________
(signature) (full name)
"___"_____________20___

89
Annex 13 Report on Servicing and Repayment of a sub-loan by Final Beneficiary, of the Loan by the Borrower, on a cumulative basis (based on table
1-1 of the MoF of Ukraine Order 07/14/2016, No. 616)

Reminder: Amortisation table prepared by the EIB for each Tranche disbursement is to be reflected for each concerned sub-project; it will be
part of the Loan Transfer agreement between the MoF, the MoI and the Final Beneficiary (ies). This amortisation table will be reflected in the
following debt coverage calculation table.

Indexes Number I II III N

1 2 3 4 5 6 7 8 9 10
Planned Achieved Planned Achieved Planned Achieved Planned Achieved
Cash balances
in bank
accounts
subject actually
received credits
(7- (8 + 9))

Net profit (loss)

Depreciation
of non-current
assets (+)

Financial
expenses (+)

Loss (profit)
from non-
operating
90
activities and
other non-cash
transactions (+,
-)

Net cash flow

from
investment
activities (+, -)

Net cash flow at

the expense of
internal sources
(amount of net
cash flow from
operating and
investment
activity to
financial
expenses),
taking into
account
balances of
funds

Payment of
cash to repay
received loans

91
Payment of
interest

Debt Coverage
(7 / (8 + 9))

92