twinning fiche - esteri fiche ide.pdf · state agency of ukraine for investment and innovation....

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TWINNING FICHE

Enhancing performance of InvestUkraine: the Ukrainian Centre for Foreign Investment Promotion in line with the best European practices

UA08/ENP-PCA/FI/13

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List of Acronyms BAPSD Bureau of Assisting Pre-court Settlement of Disputes Between Foreign

Investors and State Bodies

BI Beneficiary Institution

CT Curricula training

DB Database

EC European Commission

ENP European Neighbourhood Policy

EU European Union

FDI Foreign Direct Investment

HR Human Resource

HRM Human Resource Management

ICSED International Center for Settlement Investment Disputes

IFIS International Financial Institutions

IPA Investment Promotion Agency

IPC Investment Promotion Campaign

IPd Industrial Property database

IPS Inquiries processing system

IS Information Standards

IT Information Technologies

IU Ukrainian Center for Foreign Investment Promotion (InvestUkraine)

IZ Industrial Zones

LD Legal Department

LEDS Local Economic Development Standard

MD Marketing database

MS Member State

PA Promotional activity

PCA Partnership and Co-operation Agreement

PCM Project Cycle Management

PL Project Leader

PR Public Relations

PSC Project Steering Committee

RTA Resident Twinning Advisor

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RIC Regional and Industrial Cooperation

SBMS Sector-based marketing studies

SD Site database

SIZ Strategic Industrial Zones

STE Short Term Expert

UAH Ukrainian Hryvnia

WG Working Group

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Table of Contents 1. BASIC INFORMATION......................................................................................................... 5 2. OBJECTIVE ............................................................................................................................ 5 3. DESCRIPTION OF THE TWINNING PROJECT ................................................................. 8 4. INSTITUTIONAL FRAMEWORK ...................................................................................... 31 5. BUDGET ............................................................................................................................... 31 6. IMPLEMENTING ARRANGEMENTS ............................................................................... 31 7. IMPLEMENTING SCHEDULE (INDICATIVE) ................................................................ 33 8. SUSTAINABILITY............................................................................................................... 33 9. CROSSCUTTING ISSUES................................................................................................... 33 10. CONDITIONALITY AND SEQUENCING ....................................................................... 33 ANNEXES................................................................................................................................. 34 Annex 1: Logical Framework Matrix ........................................................................................ 35 Annex 2 – Indicative Implementation Chart (showing total duration of activities not actual input) .......................................................................................................................................... 49 Annex 3. Legal barriers to foreign investment in Ukraine ........................................................ 51

1. BASIC INFORMATION

1.1 PROGRAMME ENPI

1.2 TWINNING NUMBER UA08/ENP-PCA/FI/13

1.3 TITLE Enhancing performance of InvestUkraine: the Ukrainian Center

for Foreign Investment Promotion in line with best European practices

1.4 SECTOR Services, Investment Promotion and Protection

1.5 BENEFICIARY COUNTRY Ukraine

1.6 INSTITUTION Ukrainian Center for Foreign Investment Promotion (InvestUkraine) under the State Agency of Ukraine for Investment and Innovation

2. OBJECTIVE 2.1 OVERALL OBJECTIVE

Development and implementation of foreign investment promotion in Ukraine in line with internationally recognized practices.

2.2 PROJECT PURPOSE

Enhanced capacities and improved performance of the Ukrainian Center for Foreign Investment Promotion (InvestUkraine) to fulfil promotion functions in accordance with the leading European practices. 2.3 CONTRIBUTION TO NATIONAL POLICY, THE PARTNERSHIP AND CO-OPERATION AGREEMENT (PCA) AND THE EUROPEAN NEIGHBOURHOOD POLICY (ENP) ACTION PLAN 2.3.1 Contribution to National Policy

Increasing the inward flow of FDI has always been an important goal for the Ukrainian Government in order to strengthen the production base, to increase the capabilities of the Ukrainian industry, and to develop the country's competitive power. Using the possibility to influence the foreign investment inflow to Ukraine at the governmental level through concrete steps towards new legislative acts in the sphere of investment regulations, as the result of well-established contacts within public sector, the IU also may generate more FDI for the country. The successful activity of the IU, thus, will inevitably contribute to the relevant national policy. Foreign direct investment to Ukraine is rising, albeit from a very low level. The flow of FDI in Ukrainian economy for 2006 has totalled $4.3 billion and for Q1 of 2007 was $1.33 billion according to the State Statistics Committee. The cumulative flow of FDI amounted to $22.43 billion by April 20071. At the same time five main investors into Ukrainian market are the EU countries: Germany, Austria, the United Kingdom, Cyprus and Netherlands. Despite the annualized growth rate from 2000 to 2006 exceeded 7%, in comparison with other FDI recipients Ukraine still lags too far behind: FDI in Ukraine as % of the GDP in 2005 were at the level of 21.1, while the correspondent indicator in Hungary was 55,9, in Germany – 28,5 and in Kazakhstan – 44,8 (Figures provided by the International Finance Corporation and The World Bank Group).

1 Statistical bulletin, Investment of External Economic Activity, http://www.ukrstat.gov.ua/

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The Strategy of Economic and Social Development of Ukraine for 2004-2015 by the Way of European Integration (prepared in accordance with the Decrees of the President of Ukraine №372/2001-рп dated 21.12.2001 and №385/2002-рп dated 08.11.2002) is aimed particularly to overcome the current misbalance between developed foreign trade and relatively low flows of FDI. At the same time the mentioned strategy envisages the necessity to renew the productive assets of the economy that may hardly be achieved without substantial inflows of FDI. Due to the fact that the failure to attract foreign investment is a major impediment to Ukraine's growth potential, Ukrainian authorities have undertaken steps to create a body responsible for developing and implementing FDI promotion strategy. The Ukrainian Center for Foreign Investment Promotion (InvestUkraine) was founded in August 2005 and is a liaison between governmental organisations and current and prospective foreign investors. Due to the lack of detailed knowledge and expertise on operational techniques of leading IPA’s regarding the attraction of FDI and serving current investors the IU has not generated up to now a substantial portfolio of foreign investors. Some organizational difficulties in serving the attracted investors also appeared. While the IU has a multilingual staff, adoption of modern operational techniques and relevant training are regarded to enable it to attract more foreign investors to the Ukrainian economy and to provide them with appropriate services. There is also a need to establish within the IU the Bureau of Assisting Pre-court Settlement of Disputes Between Foreign Investors and State Bodies (BAPSD) by the correspondent Decree of the Cabinet of Ministers of Ukraine or the State Agency of Ukraine for Investment and Innovations. Such practice will allow to reduce the quantity of claims by foreign investors against Ukraine in the International Centre for Settlement of Investment Disputes (ICSID) 2 2.3.2 Contribution to the Partnership and Cooperation Agreement (PCA)

The PCA was signed in 1994 and took effect on 1 March 1998. The PCA has been determining Ukraine – EU partnership relations and the goals of these in a wide range of areas. Article 1 of the PCA states that one of the key objectives of the PCA is ‘to promote trade and investment and harmonious economic relations between the Parties and so to foster their sustainable development’.

Article 523 of the PCA recognizes that the Parties shall establish economic co-operation aimed at contributing to the process of economic reform and recovery and sustainable development of Ukraine. Such co-operation shall strengthen and develop economic links, to the benefit of both parties’. Also the Article 52 states that ‘to this end co-operation will concentrate on industrial co-operation, investment promotion and protection…’. In its turn the Article 54 underlines that ‘co-operation shall aim to establish a favourable climate for investment, both domestic and foreign, especially through better conditions for investment protection, the transfer of capital and the exchange of information on investment opportunities’. Article 57 emphasises that ’the Parties shall aim at increasing investment and trade in mining and raw materials’. At the same time the IU also believes that one of the most perspective branches for investment in Ukraine is energy (particularly – alternative energy) and the expertise assistance is needed in order to attract more FDI in this branch. Assistance to InvestUkraine in adoption of modern IPA’s operational techniques may be a very important part of such cooperation and contribute to sustainable development of Ukrainian economy.

2.3.3 Contribution to European Neighbourhood Policy (ENP)

The European Neighbourhood Policy (ENP) was developed in 2004 to foster the political and economic reform process, promote closer economic integration, legal and technical approximation and sustainable development.

2 http://www.worldbank.org/icsid/about/about.htm 3 http://www.center.gov.ua/en/213.htm (Partnership and Co-operation Agreement Between The European Communities and Their Member States, and Ukraine)

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Following the content and avenues of the ENP, the Twinning project will pay particular attention to institutional capacity building and an effective functioning of the IU operating under the umbrella of the State Agency of Ukraine for Investment and Innovation.

2.3.4 Contribution to European Neighbourhood Policy Action Plan (ENPAP)

The central element of the ENP is the bilateral ENP Action Plan adopted between the EU and Ukraine on 21 February 2005. It set out an agenda of political and economic reforms with short and medium-term priorities. According to this Action plan the Parties have agreed ’to promote the exchange of experience and of best practice on enterprise policy, aiming at developing benchmarking and evaluation exercises on specific sectors (e.g. including promotion of investment…)’.This specific Twinning Fiche is direct implementation of the provision of the Action Plan set up above.

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3. DESCRIPTION OF THE TWINNING PROJECT 3.1 BACKGROUND AND JUSTIFICATION

Regulation of foreign investment activity in Ukraine

Ukraine has established a strong legal framework for the regulation of foreign investment activity:

The main legislative act regulating foreign investment in Ukraine is the Law of Ukraine on the Regime of Foreign Investment, adopted on 19 March 1996. Under this law foreign investors may benefit from certain privileges and guaranties, including protection against changes in legislation, against nationalization, for compensation and reimbursement of loses, guarantee in the event of the termination of investment activity and guarantee of repatriation of profit.

For the protection of foreign investment on the international level, on 3 April 2000 Ukraine ratified the Washington Convention. Also Ukraine is currently a signatory to Agreements on Mutual Promotion and Mutual Protection on Investments with various countries.

The principal legislative act regulating land issues in Ukraine is the Land Code of Ukraine. Leases of real estate objects (with the exclusion of land), in Ukraine are regulated by the Civil Code of Ukraine, the Leasing Law and the State Property Leasing Law.

The fundamental principles of competition law and restriction on government interference in the market are set forth in the Ukrainian Constitution and the Commercial Code.

The principal legislative act regulating currency in Ukraine is the Decree of the Cabinet of Ministers of Ukraine on the System of Currency Regulation and Currency Control, enacted 19 February 1993.

The Ministry of Economy of Ukraine is the main governmental organization responsible for state investment and foreign economic relations policies as well as for coordination of other state institutions activities concerning economic and social cooperation between Ukraine and the EU.

At the same time projects in certain fields of Ukrainian economy may need approval by relevant ministries and state organizations (e.g. Ministry of Transport, Ministry of Environment Protection and Nuclear Safety etc).

The State Agency of Ukraine for Investment and Innovation has been established by the Decree of the President of Ukraine dated 30.12.05 № 1873 and participates in the formulation and realization of the state investment and innovation policy. The relevant propositions prepared by the Agency are transmitted to the President and to the National Council of Ukraine for Investment and Innovation, the consulting body for the President. The Agency organizes in accordance with Ukrainian legislation the examination of investment and innovation programs and projects approved by the National Council of Ukraine for Investment and Innovation and transmits the correspondent propositions to the Council. The State Agency also coordinates the process of obtaining the necessary funds for such programs and projects. The State Agency of Ukraine for Investment and Innovation is also responsible for organizational, informational and legal provision of the National Council of Ukraine for Investment and Innovation. The Head of the State Agency is chairing the Head of the National Council.

The Ukrainian Center for Foreign Investment Promotion (InvestUkraine)

With the purpose of improving investment image of Ukraine as well as the economic, legal and organizational environment for foreign investors the Ukrainian Center for Foreign Investment Promotion (InvestUkraine) was established by the Decree of the Cabinet of Ministers of Ukraine dated 02.08.05 № 666. The IU is operating under the command of the State Agency of Ukraine for Investment and Innovation and its Director is appointed by the Head of the State Agency.

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The IU had been established as a governmental agency, funded by the state budget. The IU is governed by its director and an external Steering Committee, which consists of governmental and private sector representatives, including the Chairman of the State Agency of Ukraine for Investment and Innovation, Deputy Ministers of Economy, Industrial Policy, Education and Science, Transport and Communication, Justice, Fuel and Energy, International Finance Corporation World Bank, European Bank for Reconstruction and Development, European Business Association, American Chamber of Commerce in Ukraine, Delegate of German Economy in Ukraine Western NIS Enterprise Fund.

Therefore, the relevant information on the twinning project achievements/results will be accessible to the above-mentioned persons and organizations.

In recognition of the importance of foreign investment policy in the overall reform strategy in Ukraine, the critical role of international investment for economic diversification and modernisation the basic tasks of the IU are as follows:

• To provide potential investors with information about investment opportunities;

• To assist with identifying and locating project sites, vendors, service providers, and other

resources;

• To initiate contact with potential investment partners and maintain investment projects

database;

• To liaise with government agencies and officials;

• To link investors with regional and local community leaders;

• To establish the Bureau of appeals and pre-Court settlement of disputes.

In this regard the IU:

• Contributes to the reform process concerning the improvement of investment environment; develops recommendations on assistance to be provided to facilitate positive investment decisions and submits recommendations regarding necessary legislative arrangements to the Ukrainian Government.

• Performs evaluations on the basis of industry, company and project information with a view to raise efficiency of investment promotion and development activities; undertakes initiatives with relevant authorities for formulation of policies necessary for measures to be taken, incentives, assistance, easement, immunities and exemptions to be provided according to the result of evaluations made.

• Determines potential obstacles and problems that investors may face; thereupon undertakes initiatives with the relevant authorities on solutions for the problems.

• Participates in investment promotion and development activities carried out by various public and private institutions.

• Creates or gathers from relevant organizations and institutions any information and data that contribute to foster investments in Ukraine; updates and disseminates these information and data.

To perform the stated duties the IU carries out activities related to building a positive image for the country as an investment location both in Ukraine and abroad.

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At the same time, due to the lack of detailed knowledge and expertise on leading IPA’s operational techniques regarding the attraction of FDI and serving to current investors up to now the IU has not generated a substantial portfolio of foreign investors and some organizational difficulties in serving the attracted investors appeared. While the IU has a multilingual staff, adoption of modern operational techniques and the relevant training are needed to enable it to fulfill promotion functions in accordance with the leading European practices in order to attract more foreign investors to the Ukrainian economy and to give them an appropriate service. Up to now InvestUkraine has already signed 24 Memoranda on cooperation with Ukrainian regional authorities. It is also planned to sign 3 more such memoranda with other regional authorities of Ukraine before the end of May 2008.

The organizational structure of the IU has been adjusted to the Agency’s mission, strategy and functions executed by the Agency (see Table. 1. Organizational Structure of the InvestUkraine, February 2008)

PR Department

Information Department

Bureau of appeals and pre-court settlement of investment disputes between investors and state authorities

Legal Department

Steering Committee

Director of InvestUkraine

State Agency of Ukraine for Investments and Innovations

Chief Accountant Human Resource Department

First Deputy Director Deputy Director Deputy Director

Investor Services Department

Department of Regional and Industrial Cooperation

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According to information of the UNCTAD regarding its budget (1 mln USD) and number of employees (28) the IU is a typical IPA.

IPA Annual Promotional Total Number Number of Budget Budget per Professional of Regional (US$) Annum Staff Overseas Offices (US$) Offices OECD Average

2.000.000 600.000 22 7 12

Developing Countries 1.500.000 400.000 29 4 5Average Source: - UNCTAD/ASIT. "The World of Investment Promotion at a Glance: A Survey of

Investment Promotion Practices". Advisory Studies, No.17. 2001. (Survey of 101 IPAs) - GDFI Records

Developing and Reforming the InvestUkraine The strategy of InvestUkraine and its operational plan for 3 years were adopted in 2007 with assistance of Czech advisers engaged under the USAID LED Project4. At the same time for the management of the Center it is obvious that assistance from appropriate external experts is needed while implementing the above-mentioned strategy and plan. The Strategy sets the following goals: • Sustain annual FDI flow of circa $5.0 billion to the end of 2010

• Increase the flow of FDI to the regions of Ukraine

• Increase the technological and innovative content of FDI

• Annually, IU’s contribution to the total flow of FDI should be in the 30% to 40% range.

The ’3-year operational plan’ envisages:

1. To develop a pro-active marketing system with strategic focus on key value chains/sectors that enhance competitiveness of Ukrainian economy. Establishing of a continuous system of market research in key target sectors is also planned. Such system will enable the Agency to identify competitive advantages of different branches of Ukrainian economy and then to inform the potential investors on them. Since the growth of the GDP is largely caused by the growth of the FDI the aim of the Agency is to reach annual growth of the FDI equalling to USD 175 per capita by 2010.

2. To develop and disseminate to target groups promotional information on investment opportunities in Ukraine, build an attractive image of Ukraine within each target sector as well as to establish effectiveness.

3. To engage in active investor outreach in order to generate 500 inquiries and 100 investment projects by 2010.

4. To establish and operationalize systems and procedures for project cycle management from site visit to “factory” opening, to attend 300 site visits, and assist 100 projects by 2010 and complete 50 of them.

4 USAID LED, The Investment Promotion Strategy, Ukraine, White paper, for internal usage, 39 paged : this strategy was prepared through a highly participative process whereby FIAS guided and assisted IU and complemented the earlier strategic direction outputs provided by the USAID/LED Ukraine team

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5. To develop and manage relationships with existing foreign investors in Ukraine.

6. To establish networks of professional allies in regions who prepare / manage development of industrial sites are capable of providing services in support of investors.

7. To encourage partner cities to develop, manage and update investor information on local economies, provide coordination and coaching, encourage cities to prepare investor presentations.

8. To facilitate development of at least 600 hectares of market ready property for investors by 2010 to be used for offers to investors interested in locating their operations in Ukraine.

9. To launch preparation of the local suppliers’ database, to set up the entry criteria, to assist local businesses in meeting the entry criteria.

10. To establish an HRM system that motivates performance, achievement of results, collegial relationships at work, provides professional training and career development and numerous support activities that encourage individual and team excellence.

11. To establish an organized IT system allowing for professional, responsive and result-oriented conduct, monitoring and evaluation of marketing activities as well as transparent communication with potential customers.

12. To cooperate with external funding providers to attract financing in support of implementation if the IU’s strategy and other key functions.

13. To manage relationships with the different governmental organizations in the area of positive business climate legislation, advocacy of investors’ complaints and suggestions of improvements, to sell results / success of the IU’s work to founders and general public.

14. To establish an effective and functional partner networks capable of supporting the IU’s key activities.

Analysis of the current state of play and expectations

International consulting company McKinsey & Co5 found that FDI had been far more powerful than trade as a force for improving productivity and international competitiveness and suggested that the difference between 1.5% and 2.5% productivity growth is the difference between the standard of living doubling in one generation or two generations. In terms of the linkage between FDI and economic growth, The Economist reported that a rise of 1% in the ratio of the stock of FDI to GDP will raise GDP by 0.4%.6 The goals set by the Strategy and 3 year plan seem to be very challengeable, but realistically attainable. Basic preconditions are servicing foreign investors in an appropriate way and unlocking the full potential of regions of the country. Due to the lack of detailed knowledge and expertise on operational techniques of leading IPA’s regarding the attraction of FDI and serving current investors the IU has not generated up to now a substantial portfolio of foreign investors. Some organizational difficulties in serving the attracted investors also appeared. While the IU has a multilingual staff, adoption of modern operational techniques and relevant training are regarded to enable it to attract more foreign investors to the Ukrainian economy and to provide them with appropriate services. There is also a need to establish within the IU the Bureau of Assisting Pre-court Settlement of Disputes Between Foreign Investors and State Bodies by the correspondent Decree of the Cabinet of Ministers of

5 Mc Kinsey & Co 6 Economist

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Ukraine or the State Agency of Ukraine for Investment and Innovations. Such practice will allow reducing the quantity of claims by foreign investors against Ukraine in the International Centre for Settlement of Investment Disputes (ICSID)7 . The Global Competitiveness Index of the World Economic Forum (http://www.gcr.weforum.org/) ranks Ukraine as just 115 among 131 countries estimated in terms of development of institutions and organizations that have influence on the competitiveness of the national economies. Particularly among evident weaknesses of the Ukrainian economy the experts of the World Economic Forum pointed out such aspects as total low level of the business ethics, low protection of the minority shareholders rights, weak protection of property rights, low efficiency of the legislation, weak independence of the courts, weak intellectual property protection, reliability of police service, prejudicialness regarding certain businesses in corresponding decisions of local authorities, negative influence of current legislation on economic development, effectiveness of the antimonopoly policy, evident domination of certain business units in certain industries, high number of procedures for business registration, long time to market, protection of investors rights. All these in their turn result in low inflow of the FDI and low presence of foreign investors in Ukraine. Foreign investors will not be charged for the services of such Bureau. As far as Ukraine does not have investment incentives such as Slovakia or Czechia do, such the Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies may become as a quasi-incentive which aims to protect rights of investors and help them to work in above-mentioned conditions of Ukrainian specific business-climate. No other such body as the mentioned Bureau exists currently in Ukraine. Previously a special Committee had functioned to resolve investment disputes at the highest governmental level with the Vice-President of Ukraine as the Head of such Committee and almost all the Ukrainian ministries had been involved in the activity of such Committee, but then by the decision of the Cabinet of Ministers of Ukraine the Committee stopped its functioning. Thus, Ukraine currently does not have such tool for foreign investors and the only one opportunity to resolve investment disputes quickly and without court procedures may become the Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies as a department of InvestUkraine. According to the vision of the IU’s management, such Bureau may consist not only from the IU’s lawyers, but also representatives of several leading private juridical companies may participate in its activity and advice on possible ways of resolving investment disputes. Therefore, the activity of the Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies is of current importance for the further development of Ukrainian economy.

In such situation it is very important for the FDI growth is that the IU stays in constant contact with the business and investment communities as well as with Ukrainian government and local authorities. The IU provides to foreign investors set-up assistance, legal advisory, networking the customer with local actors – government offices, consultants, architects, construction consortia, etc. Thus, the IU has “active” contacts with local authorities’ institutions in nearly all Ukrainian regions and has established networks of professional allies in such regions who prepare and manage development of industrial sites and are capable of providing services in support of investors.

A SWOT (strengths, weaknesses, opportunities, threats) analysis for the role and capabilities of the IU in increasing FDI is set out below.

7 http://www.worldbank.org/icsid/about/about.htm

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Strengths • Strong contacts across the public sector • Committed to the promotion of FDI • Multilingual staff • Possibility to influence on the governmental

level the foreign investment inflow to Ukraine as the result of well-established contact within public sector

Weaknesses • Lack of detailed knowledge and expertise

on leading IPA’s operational techniques regarding the attraction of FDI and serving to current investors

• Lack of overall control of staff performance

Opportunities • To become a substantial contributor to the

total flow of FDI in Ukrainian economy • To set standards for the public sector

regarding the work with foreign investors (e.g. local authorities, Ukrainian embassies to other countries)

• Increased interest of foreign investors in Ukrainian market

Threats • Possible lack of legislative support for

the investment climate improvement in the short-term period

• Possible political instability may influence negatively on the IU’s efforts in attracting more FDI to Ukraine

Thus, the goal of the Twinning project is to assist the IU to fulfil investment promotion functions. This way the IU will invest in its staff through extensive skills development and training while establishing the reputation as the leading source of pertinent and accurate information of relevance to both investors and stakeholders. The improvement of the IU’s competencies in order to attract more foreign investors to Ukraine will be gradual and interactive. It may be achieved with a project package which includes workshops, expert missions and study visits. The realization of Twinning project will develop the IU’s competencies and attributes that include: • The ability to present ‘features’ but sell ‘benefits’;

• Product and competitor location knowledge;

• Project management skills;

• Professional presentation skills;

• Communication and negotiation skills;

• Team leadership and team player skills.

From the above-mentioned it may be concluded that due to its organizational structure, multilingual staff and service-oriented culture the IU has a capacity to adopt standards, methodologies and techniques of the best European IPAs and to achieve the Twinning project purpose. Moreover, during the assistance to IU project representatives of Ukrainian local authorities will benefit from training in development of Local Economic Development Standard, Sector-based Marketing Studies, Investment Promotion Campaigns, Efficient Investors Servicing and Aftercare.

Current barriers for foreign investment in Ukraine

Making decisions about foreign investment is complex and requires knowledge of a country’s investment and commercial climate combined with the realisation that the climate cannot change overnight.

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From several reports prepared by international economic agencies it may be referred that current legal basis creates barriers to foreign investment in Ukraine, described in the Annex 3.

Another problem, which affects all businesses operating in Ukraine at all times, is the chaotic, arbitrary, excessive and incredibly costly overregulation and interference by the authorities in all spheres of business. Moreover, cause of lack of investment incentives potential foreign investors are often careful about investing in Ukraine.

Scope of the planned project (1) Technical methodologies and Procedures

1. Sector-based marketing studies should be done and the methodological approach for such studies should be chosen. Only then a package of sector specific brochures for potential foreign investors should be developed. Up to now only general promotion materials, brochure regarding taxation and real estate guide were issued. Obviously, there is a risk that conditions in some sectors of Ukrainian economy may be changed in the nearest future. The example is the recent limitation by the government of Ukrainian corns’ export. But due to the fact that such actions are very rare and the country is on the way to the WTO such sector-based marketing studies when relevant skills are effectively transferred from a leading European IPA will be relevant. For such seminar on sector-based marketing studies will be invited also reprentatives of local authorities.

2. Monitoring and evaluation systems of the IU’s promotional activity effectiveness must be

established. The solution here could be inviting experts (consultants) and organizing relevant workshops for the agency’s staff. At the same time such systems should be adapted to the conditions in which the IU operates, otherwise there is a risk of their irrelevance. Strong commitment of the IU to cooperate with the STEs and RTA in this issue will be crucially important. For such seminar on investment promotion campaigns will be invited also reprentatives of local authorities.

3. A comprehensive intranet-accessible marketing database to store contacts and knowledge

on potential investors in key priority sectors and source markets should be developed. The marketing team of the IU needs training regarding use of such DB. The design of this database should be similar to those used by European IPA’s. Here relevant consultancy is also needed.

4. Inquiries processing system should be formulated, sites DB has to be developed and systems

and procedures for project cycle management from site visit to “factory” opening has to be established. The solution here also could be inviting experts (consultants) and organizing relevant workshops for the agency’s staff. The best European IPA’s practice should be adopted by the IU in this regard.

5. There is a need to develop a Local Economic Development Standard in order to encourage cities’ involvement in local economic development initiatives. The solution here could be in organizing seminar on Local Economic Development Standard not only for the IU’s staff, but also for local authorities’ officials and ministries (ministry of economy and ministry of foreign affairs) representatives invited by the IU. The presence of local authorities’ officials in this seminar requires from the IU appropriate informational campaign. Industrial property DB attractive for foreign investors as well as Community information standard should be prepared. There is a risk that some Ukrainian local authorities will not wish to cooperate in such initiatives, but this risk can be managed due to good image and business relations of the IU.

6. Advisory assistance is also needed in identification and planning for development of

strategic industrial zones in large agglomerations / near important transportation corridors / gateways. Based on such plans the IU will prepare and negotiate a funding program to co-finance IZ development from the state budget – at least UAH 30 million a year. This will also results in elaboration of propositions/amendments to legal texts, initiation and conduction of

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round-tables, public discussions, possible assistance in supporting projects of legal text. At the same time the risk incurred is that such funding program will not be realised due to limited lobbying capacity of the IU to improve the legislative component of investment climate in Ukraine. Among other factors that may affect the realisation of such program are macro-economic conditions in Ukraine and socio-cultural influences (first of all, possible corruption).

7. Local supplier program also should be prepared with designing assistance to local business

involved. The following evaluation of this program is not considered so far as well.

8. The Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies has to be established within the IU by the correspondent Decree of the Cabinet of Ministers of Ukraine or the State Agency of Ukraine for Investment and Innovations. The relevant consultancy concerning the work of such Bureau is needed.

The twinning project is planned to provide detailed technical assistance to IU to ensure that the standards, methodologies and techniques adopted represent European best practice.

(2) Human resource management

1. Assistance is needed in establishing HRM system that motivates performance, achievement of results, collegial relationships at work, provides professional training and career development and numerous support activities that encourage individual and team excellence. In this regards it is essential to establish a system of an ongoing professional development for IU’s staff (trainings, seminars, internships). This should include elaboration and implementation of trainings and career development programs for the IU’s staff in the fields that directly relate to IU’s strategy and activity (investor servicing, aftercare, conducting effective investment promotion campaigns) as well as trainings in presentation skills development and marketing. Implementation of these programs will result in trained and qualified in their respective areas of activity staff.

2. The Twinning project will need to design and implement training programmes on two levels:

• general training, to management and staff, on the concepts and practices of FDI promotion;

• training future trainers. (3) IT Assistance is needed in establishing an organized IT system allowing for professional, responsive and result-oriented conduct, monitoring and evaluation of marketing activities as well as transparent communication with potential customers. The selected system should be tested and its users provided with relevant training. The project anticipates that professional IT system used in everyday practice will be created by the IU. 3.2 LINKED ACTIVITIES

There have been several projects designed to assist the IU to fulfil investment promotion functions. o Assistance to the IU by the USAID in elaboration of Investment Promotion Strategy, 2007 - as a

result the strategy document is prepared by IU with fully participative input and guidance from FIAS - a multi-donor service managed by the International Finance Corporation and The World Bank Group. It represents a prime output following the Institutional Needs Assessment of the IU requested by the Ministry of Economy and undertaken by FIAS in December 2006. This strategy is the route map to a given goal or goals and builds on the operational strategy, competently developed by the Czech advisers engaged under the USAID LED Project.

• USAID assistance to the IU in elaboration of “3-year plan”, 2007; • USAID assistance to the IU in organising seminars on WTO accession and Investment Promotion,

2005; • USAID assistance to the IU in organising seminars on Local Economic Development, 2007;

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• On-going USAID assistance to the IU concerning specific FDI projects in Ukraine. As the results of such assistance the Investment Promotion Strategy and the “3-year plan” have been created, the seminars hold and several projects realised. 3.3 RESULTS In order to achieve the project purpose, the following nine Mandatory Results are envisaged: Component 1. Advisory assistance from EU expert to improve the IPA’s institutional and operational capacities Mandatory Result 1.1 Marketing capabilities of InvestUkraine are improved. The Mandatory Result 1.1 will be achieved through developing of a pro-active marketing system with strategic focus on key value chains/sectors that enhance competitiveness of Ukrainian economy. Establishing of a continuous system of market research in key target sectors is also planned. Such system will enable the Agency to identify competitive advantages of different branches of Ukrainian economy and then to inform the potential investors on them. Since the growth of the GDP is largely caused by the growth of the FDI the aim of the Agency is to reach annual growth of the FDI equalling to USD 175 per capita by 2010. Besides, the developing and dissemination of promotional information on investment opportunities to target groups, building an attractive image of Ukraine within target sectors are also envisioned to be achieved through the Result 1. Overall, the marketing capabilities of IU will be improved through:

1. The conduction of the Sector-based marketing studies in two perspective branches of Ukrainian economy based on relevant methodological approach and resulted on elaboration of a package of sector specific brochures in two sectors (e.g. Agriculture and Alternative Energy sectors)

2. The development of comprehensive intranet-accessible Marketing Database of current and potential investors in key sectors of Ukrainian economy

3. The elaboration of the Monitoring and Evaluation Systems for the Assessment of the IU’s Promotional Activity

Mandatory Result 1.2 Operational capabilities of InvestUkraine are enhanced. The Mandatory Result 1.2 will be achieved through engaging IU in active investor outreach in order to generate 500 inquiries and 100 investment projects by 2010, establishing and operationalizing systems and procedures for project cycle management from site visit to “factory” opening, to attend 300 site visits, and assist 100 projects by 2010 and complete 50 of them. Furthermore, the developing and managing relationships with existing foreign investors in Ukraine and establishing networks of professional allies in regions, who prepare/manage development of industrial sites, which capable of providing services in support of investors will contribute to the achievement of the Result 2. The operational capabilities of InvestUkraine will be further enhanced through encouragement of partner cities to develop, manage and update investor information on local economies, provide coordination and coaching, encourage cities to prepare investor presentations, facilitation of the development of at least 600 hectares of market ready property for investors by 2010 to be used for offers to investors interested in locating their operations in Ukraine as well as launching the preparation of the local suppliers’ database, to set up the entry criteria, to assist local businesses in meeting the entry criteria. Overall, the operational capabilities of IU will be enhanced through:

1. The creation of the New Inquiries processing system in line with best European practices

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2. The development of the Sites Database 3. The elaboration of the systems and procedures for Project Cycle Management starting from

the site visit to ‘factory’ opening 4. The development of the Local Economic Development Standard 5. The development of the Industrial Property database 6. The elaboration of the strategic plan for the development of the Strategic Industrial Zones in

large agglomerations/near important transportation corridors/gateways 7. The elaboration of the Community and Regional Information Standards for partner

cities/regions and the development of the system to collect and update the information to be provided in support of site information included in responses to inquiries

Mandatory Result 1.3 IT capacities of InvestUkraine are enhanced. The Mandatory Result 1.3 will be achieved through establishing an organized IT system allowing for professional, responsive and result-oriented conduct, monitoring and evaluation of marketing activities as well as transparent communication with potential customers. Mandatory Result 1.4 HR management capacities of InvestUkraine are enhanced.

The Mandatory Result 1.4 will be achieved through the establishment of an HRM system that motivates performance, achievement of results, collegial relationships at work, provides professional training and career development and numerous support activities that encourage individual and team excellence.

Overall HR management and IU’s organizational capacities will be enhanced through:

1. The development and implementation of a new IU’s Human Resource Management System. 2. The establishment of a Bureau of Assisting Pre-court Settlement of Disputes Between

Foreign Investors and State Bodies (BAPSD) Component 2. Training Mandatory Result 2.1 Training curricula is developed. The Mandatory Result 2.1 will be achieved through elaboration of the Training curricula together with the unified consistent training materials for the training courses in marketing, PR, operational and legal issues resolution, IT, HRM, strategy design. Mandatory Result 2.2 Knowledge and experience of InvestUkraine in marketing is enhanced. The Mandatory Result 2.2 will be achieved through:

1. The implementation of the Training programme for the conduction of the Sector-based marketing studies

2. The implementation of the Training programme in the development of Marketing database 3. The implementation of the Training programme in carrying out an effective and efficient

investment promotion campaigns in line with best EU practices Mandatory Result 2.3 Knowledge and experience of InvestUkraine in EU conform operational services is enhanced.

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The Mandatory Result 2.3 will be achieved through:

1. The implementation of the Training programme in provision of efficient investor services and aftercare in line with best EU practices.

2. The implementation of the Training programme in usage of the Local Economic Development Standard, as well as Regional and Community Standards for fostering local/regional economic development through encouraging cities’ involvement in local development economic initiatives, such as the preparation of strategic plans which dealt with improvements in the business infrastructure and quality of a local investment climate.

3. The implementation of the Training programme in implementing of newly elaborated systems and procedures of Project Cycle Management from site visit to ‘factory’ opening.

4. The implementation of the Training programme in the development of Sites database and Industrial Property database.

Mandatory Result 2.4 IT system is supported by increased knowledge and experience of the IU’s designated staff. The Mandatory Result 2.4 will be achieved through:

1. The implementation of the Training programme in implementing of effective IT system designed for the IU

Mandatory Result 2.5 Knowledge and experience of IU designated staff in HR issues and organizational development issues is enhanced. The Mandatory Result 2.5 will be achieved through:

1. The implementation of the Training programme in implementing of effective Human Resource Management system designed for the IU.

2. The implementation of the Training programme in implementing of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies.

3.4 ACTIVITIES

3.4.1 The detailed content of the proposed twinning project was developed in a series of discussions with the IU’s officials. The activities were set out by referring to specific objectives of the IU in terms of its responsibilities to fulfil investment promotion functions.

These objective-based activities were subsequently re-structured into thematic components.

3.4.2 Indicative activities of the twinning project, on a thematic basis, are set out below.

Activity number Scope of Activity Means (MS/BA) Component 1 Mandatory Result 1.1

Activity 1.1.1 Set up a Working Group (WG) responsible for conducting Sector-based marketing studies (SBMS) in two perspective branches of Ukrainian economy (e.g. agriculture, alternative energy). (Number of man/days for MS partner - 1)

MS: RTA BA: PR, Investor Services (IS), Regional and Industrial Cooperation (RIC)

Activity 1.1.2 Assist in conducting SBMS (in 2 prospective braches of Ukrainian economy) based on a sound methodological approach chosen and justified. (Number of man/days for MS partner – 30) To perform this activity it will be necessary to foreseen

MS: 1 Marketing STE or 2 Marketing STEs (1-agriculture; 2 – alternative energy) and RTA;

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Activity number Scope of Activity Means (MS/BA) the usage of translation of documentation and interpretation services.

BA: PR, Investor Services (IS), Regional and Industrial Cooperation (RIC)

Activity 1.1.3 Organize a ‘round-table’ discussion to agree upon the design and production of a package of Sector-based specific brochures in 2 prospective sectors of Ukrainian economy. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen the usage of translation of documentation and interpretation services.

MS: RTA and 1 PR expert BA: PR, Investor Services (IS), Regional and Industrial Cooperation (RIC)

Activity 1.1.4 Set up a WG responsible for the development of Marketing Database (MD) to store current and potential investors in key sectors of Ukrainian economy. (Number of man/days for MS partner - 1)

MS: RTA BA: PR, IS, RIC, IT

Activity 1.1.5 Assist in the development of MD (Number of man/days for MS partner – 30) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.

MS: 1 Marketing STE + RTA BA: PR, IS, RIC, IT

Activity 1.1.6 Review of current IU’s promotional activity. (Number of man/days for MS partner - 5) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 PR STE BA: PR

Activity 1.1.7 Assist in designing monitoring and evaluation systems for the assessment of the IU’s promotional activity. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 PR STE + RTA BA: PR

Mandatory Result 1.2

Activity 1.2.1 Set up a WG responsible for the development of a new Inquires Processing System (IPS). (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: PR, IT, Legal Department (LD), IS, RIC

Activity 1.2.2 Review of the existing inquiries processing system and producing ‘Key Findings Report’. (Number of man/days for MS partner - 5) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.2.3 Assist in developing of a new (revised) Inquiries Processing System in line with best European practices. (Number of man/days for MS partner – 30) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.


Activity 1.2.4 Set up a WG responsible for the development of Sites database (SD). (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: IT, IS, RIC

Activity 1.2.5 Assist in developing of the SD. (Number of man/days for MS partner - 25) To perform this activity it will be necessary to foreseen

MS: RTA + 1 Operational STE BA: IT, IS, RIC

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Activity number Scope of Activity Means (MS/BA) a supply of translation and interpretation services and software.

Activity 1.2.6 Set up a WG responsible for the elaboration of systems and procedures for Project Cycle Management (PCM) starting from the site visit to ‘factory’ opening. (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: IS, RIC, LD

Activity 1.2.7 Assist in the elaboration of systems and procedures for Project Cycle Management (PCM) starting from the site visit to ‘factory’ opening. (Number of man/days for MS partner - 25) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.

MS: RTA + 1 Operational STE BA: IS, RIC, LD

Activity 1.2.8 Set up a WG responsible for the development of the Local Economic Development Standard (LEDS). (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: IS, RIC

Activity 1.2.9 Assist in the development of LEDS. (Number of man/days for MS partner - 25) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.


Activity 1.2.10 Set up a WG responsible for the development of the Industrial Property database (IPD). (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: IS, RIC, IT

Activity 1.2.11 Assist in the development of the IPD. (Number of man/days for MS partner - 30) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.

MS: RTA + 1 Operational STE BA: IS, RIC, IT

Activity 1.2.12 Set up a WG responsible for the identification and elaboration of the strategic plan for the development of the Strategic Industrial Zones (SIZ) in large agglomerations/near important transportation corridors/gateways. (Number of man/days for MS partner - 1)


Activity 1.2.13 Assist in identification and elaboration of the strategic plan for the development of the SIZ in large agglomerations/near important transportation corridors/gateways. (Number of man/days for MS partner - 30) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.2.14 Set up a WG responsible for the elaboration of the Community and Regional Information Standards for partner cities/regions and the development of the system to collect and update the information to be provided in support of site information included in responses to inquiries. (Number of man/days for MS partner - 1)

MS: RTA + 1 Operational STE BA: IS, RIC, PR, LD

Activity 1.2.15 Assist in elaboration of the Community & Regional Information Standards. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.

MS: RTA + 1 Operational STE BA: IS, RIC, PR, LD

Activity 1.2.16 Assist in the development of the system to collect and MS: RTA + 1

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Activity number Scope of Activity Means (MS/BA) update the information to be provided in support of site information included in responses to inquiries. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.

Operational STE BA: IS, RIC, PR, LD


Activity 1.3.1 Set up a WG responsible for the development and implementation of professional, responsive, results-oriented, based on current IU’s needs IT system. (Number of man/days for MS partner - 1)

MS: RTA + 1 IT STE BA: IT, IS, RIC, PR, LD

Activity 1.3.2 Review of current IT system at the IU and needs specification. (Number of man/days for MS partner - 20) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.3.3 Assist in the development of upgraded professional, responsive, results-oriented IT system, based on current IU’s needs. (Number of man/days for MS partner - 20) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.3.4 Assist in implementation of upgraded professional, responsive, results-oriented IT system, based on current IU’s needs. (Number of man/days for MS partner - 20) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and software.



Activity 1.4.1 Set up a WG responsible for the development and implementation of the new IU’s Human Resource Management System (HRMS). (Number of man/days for MS partner - 1)

MS: RTA + 1 HR STE BA: heads of all IU’s departments: HR, IT, IS, RIC, PR, LD

Activity 1.4.2 Review of current HRMS and produce ‘Key Findings Report’, which contains proposed amendments for the latter aligned with EU best practices. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.4.3 Assist in the development for the new HRMS, which motivates performance, achievement of results, collegial relationship at work, provides professional training and career development, boosts individual and team excellence. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.4.4 Assist in the implementation of a new HRMS, which motivates performance, achievement of results, collegial relationship at work, provides professional training and career development, boosts individual and team excellence. (Number of man/days for MS


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Activity number Scope of Activity Means (MS/BA) partner - 20) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

Activity 1.4.5 Set up a WG responsible for strategy development and establishment of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies. (Number of man/days for MS partner - 1)

MS: RTA + 1 Legal STE BA: LD, HR, IT etc

Activity 1.4.6 Review of needs. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: RTA + 1 Legal STE + 1 Operational STE BA: LD, HR, IT etc

Activity 1.4.7 Assist in strategy development for BAPSD and write a ‘Strategy paper’ for the establishment of BAPSD within the IU. (Number of man/days for MS partner - 20) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.4.8 Assist in establishment of the Action Plan for setting up the BAPSD within IU. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Activity 1.4.9 Assist in implementation of the Action Plan for setting up the BAPSD within IU. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.


Component 2 Mandatory Result 2.1

Activity 2.1.1 Assist in conducting Training Needs Analysis (TNA) of IU’s staff in marketing, PR, operational and legal issues resolution, IT, HRM. (Number of man/days for MS partner - 30) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: RTA + 1 Marketing STE + 1 PR STE + 1 Operational STE + 1 Legal STE + 1 IT STE + 1 HR STE BA: representatives of all IUs departments

Activity 2.1.2 Assist in development of the Curricula training together with the unified consistent training materials for the conduction of the training courses in marketing, PR, operational and legal issues resolution, IT, HRM. (Number of man/days for MS partner - 60) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and training materials.

MS: RTA + 1 Marketing STE + 1 PR STE + 1 Operational STE + 1 Legal STE + 1 IT STE + 1 HR STE BA: representatives of all IUs departments


Activity 2.2.1 Workshop/seminar: basic training for all representatives IU, State Agency, regional oblast administrations in conducting sector-based marketing studies using relevant methodological approaches aligned with best EU practices. (Number of man/days for MS partner - 8) To perform this activity it will be necessary to foreseen

MS: 1 Marketing Training STE + RTA BA: PR, IS, RIC representatives + State Agency representatives + Regional

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Activity number Scope of Activity Means (MS/BA) a supply of translation and interpretation services and training materials.

Administrations representatives

Activity 2.2.2 Workshop: special training for only IUs representatives in conducting sector-based marketing studies using relevant methodological approaches aligned with best EU practices. (Number of man/days for MS partner - 7) To perform this activity it will be necessary to foreseen a supply of translation services .

MS: 1 Marketing Training STE + RTA BA: PR, IS, RIC representatives

Activity 2.2.3 Study visit for 5 the IU’s staff to familiarize with the work of Marketing and PR Departments of IU’s MS partner (e.g. sector-based marketing studies, promotional campaigns and their monitoring and evaluation etc). (Number of man/days for MS partner - 5)

MS: MS partner agency BA: representatives of PR, IS, RIC

Activity 2.2.4 Workshops (2 at least) for the representatives of the respective departments of the IU, participating in the development of Marketing database (MD) of current and potential investors (Number of man/days for MS partner – 10) To perform this activity it will be necessary to foreseen a supply of translation services.

MS: 1 Operational STE +1 Marketing STE + RTA BA: PR, IS, RIC, IT - 1 workshop for PR & IT; - 1 workshop for IS, RIC and IT

Activity 2.2.5 Series of workshops (2 at least) for the representatives of the respective departments of the IU on how to navigate, maintain and introduce upgrades to already developed Marketing database. (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation services.


Activity 2.2.6 Workshop/seminar: basic training for all representatives IU, State Agency, regional oblast administrations in carrying out an effective and efficient investment promotion campaigns in line with best EU practices. (Number of man/days for MS partner – 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and training materials.

MS: 1 PR Training STE + RTA BA: PR, IS, RIC representatives + State Agency representatives + Regional Administrations representatives

Activity 2.2.7 Workshop: special training for only IU’s reps in carrying an effective and efficient investment promotion campaigns as well as monitoring and evaluating of the promotional activities of the Investment Promotion Agency (IPA). (Number of man/days for MS partner - 5) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 PR Training STE + RTA BA: PR, IS, RIC, HR representatives

Activity 2.2.8 Study tour for 5 IU’s specialists to familiarize with the work of Investor Services and Regional Cooperation departments of the MS partner agency (5 man/days).

MS: MS partner agency BA: IS and RIC


Activity 2.3.1 Workshop/seminar: basic training for all representatives IU, State Agency, regional oblast administrations) in provision of efficient investor

MS: 1 Operational STE +RTA BA: PR, IS, RIC

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Activity number Scope of Activity Means (MS/BA) services and aftercare in line with best EU practices. (Number of man/days for MS partner - 8) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and training materials.

representatives+ State Agency representatives+ Regional Administrations representatives

Activity 2.3.2 Workshop: special training for only IUs reps in implementing effective and efficient investor services and aftercare and monitoring indicators of these services in line with best EU practices. (Number of man/days for MS partner - 7) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 Operational STE +RTA BA: PR, IS, RIC, HR representatives

Activity 2.3.3 Workshop/seminar: basic training for all

representatives IU, State Agency, regional oblast administrations in usage of the Local Economic Standard, as well as Regional and Community Standards for fostering local/regional economic development through encouraging cities’ involvement in local development economic initiatives, such as the preparation of strategic plans which dealt with improvements in the business infrastructure and quality of a local investment climate. (Number of man/days for MS partner - 8) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services and training materials.

MS: 1 Operational STE + RTA BA: PR, IS, RIC, LD representatives + State Agency representatives + Local/Regional Administrations representatives

Activity 2.3.4 Workshop: special training for only IUs representatives in development and usage of the Local Economic Standard, as well as Regional and Community Standards. (Number of man/days for MS partner - 7) To perform this activity it will be necessary to foreseen a supply of translation services.

MS: 1 Operational STE + RTA BA: PR, IS, RIC, LD representatives

Activity 2.3.5 Study visit for 5 IU’s specialists to the MS partner’s office. (Number of man/days for MS partner - 5)

MS: MS partner agency BA: IS, RIC, IS representatives

Activity 2.3.6 Workshop: special training for IUs reps only in implementing of newly elaborated systems and procedures of PCM from site visit to ‘factory’ opening. (Number of man/days for MS partner - 20) To perform this activity it will be necessary to foreseen a supply of translation services.

MS: 1 Operational STE + RTA BA: IS, RIC, LD

Activity 2.3.7 Study visit for 5 IU’s specialists to the MS partner’s office. (Number of man/days for MS partner - 5)

MS: 1 MS partner agency BA: IS, RIC, IS, LD representatives

Activity 2.3.8 Series of workshops (2 at least) for the representatives of the respective departments of the IU, participating in the development of Sites database (SD) and Industrial Property database (IPD). (Number of man/days for MS partner – 10) To perform this activity it will be necessary to foreseen a supply of translation services.

MS: 1 Operational STE +1 Marketing STE + RTA BA: PR, IS, RIC, IT - 1 workshop for IS, PR (MD, SD, IPD); - 1 workshop for RIC and IT (MD, SD and

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Activity number Scope of Activity Means (MS/BA) IPD)

Activity 2.3.9 Series of workshops (2 at least) for the representatives of the respective departments of the IU on how to navigate, maintain and introduce upgrades to already developed databases (SD, IPD). (Number of man/days for MS partner - 10) To perform this activity it will be necessary to foreseen a supply of translation services.



Activity 2.4.1 Workshop: special training for IUs reps in strategy implementation of effective IT system designed for IU. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation services.

MS: 1 IT STE + RTA BA: IT, IS, RIC, PR


Activity 2.5.1 Workshop: special training for IUs reps in strategy implementation of effective HRM system designed for IU. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 HR STE + RTA BA: HR, IS, RIC, PR

Activity 2.5.2 Workshop: special training for IUs reps in strategy

implementation for the establishment of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies. (Number of man/days for MS partner - 15) To perform this activity it will be necessary to foreseen a supply of translation and interpretation services.

MS: 1 Legal STE + RTA BA: LD, HR, IS, RIC, PR

Activity 2.5.3 Study visit for 5 the IU’s specialists from IT, HR and LD departments(Number of man/days for MS partner - 5) To perform this activity it will be necessary to foreseen a supply of interpretation services.

MS: MS partner agency BA: IT, HR and LD

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3.5 MEANS/INPUT FROM THE MS PARTNER ADMINISTRATION

3.5.1 ROLE AND PROFILE OF THE MS PROJECT LEADER

Role and tasks:

• The Project Leader will direct, co-ordinate, and control the overall thrust of the project. He/she will lead the activities of the project, ensure the achievement of the mandatory results, and be responsible for the implementation of the activities.

• The Project Leader is expected to devote a minimum of three days per month to the project in his home administration, not in Ukraine. In addition, he/she should co-ordinate, from the Member State side, the Project Steering Committee (PSC), which will meet in Ukraine at least every three months.

Profile:

Qualification and skills

• Good English language skills, both spoken and written. Command of the Russian/Ukrainian language would be a strong asset;

• Good inter-personal skills.

General professional experience

• Long term civil servant from the MS administration or IPA;

• Preferably 15 years of professional experience in relevant fields as investment management, macroeconomics, business administration, business economics;

• Experienced project manager, demonstrating good record in organisational leadership, staff motivation, and communication.

Specific professional experience

• Shall have sound theoretical and practical experience in formulating and implementing investment promotion strategies and relevant policies.

3.5.2 ROLE AND PROFILE OF THE RTA

Role and tasks:

The RTA will be responsible for the day-to-day management and implementation of the project. He/she will be responsible for co-ordinating all the different activities and inputs and for liaising with the RTA counterpart in InvestUkraine. Assistant to the RTA will be renumerated through the Twinning budget.

The RTA will provide 21 months input on site and will be based in an office in InvestUkraine.

Profile:


• University level education, or professional qualification in, Business Economics or Business Administration;

• Excellent English language skills, both spoken and written. Command of the Russian/Ukrainian language would be a strong asset;

• PC Computer literacy;

• Good inter-personal skills.


• IPA officer from an EU IPA Administration;

• Preferably 10 years of professional experience;

• Experienced project manager, demonstrating good record in organisational leadership, staff motivation and communication;

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• Excellent team-working skills;

• Strong analytical skills;

• Two years experience of the transition economies of the CIS would be an asset.


• Shall have sound theoretical and practical experience in formulating and implementing investment promotion strategies and relevant policies;

• Experience in developing, co-ordinating, and conducting training programmes in the EU or CIS countries would be an asset.

3.5.3 ROLES AND PROFILES OF THE SHORT TERM EXPERTS

In order to provide the full range of expertise necessary, short term experts will be drawn from five different skill sets (some overlapping) to assist the IU on specific activities. These short term experts will be from the IPA of a Member State. STE 1: Operational Experts

Role

The short term operational experts will be responsible for advising on any necessary amendments to the existing operational techniques and processes of the IPA, delivering relevant training.

Profile


• University Degree in Business Economics or Business Administration;


• PC literacy;

• Good inter-personal skills;


• Employees of an IPA in an EU MS;

• Preferably 10 years professional experience;



• Preferably 5 years professional experience in such topics as inquires processing system, development of sites DB, project cycle management (including investor servicing and aftercare), development of local economic development standard, preparation of industrial property DB, preparation of community information standard, identification and planning for development of strategic industrial zones, preparation of local supplier program. Experience in delivering trainings on such topics.

STE 2: IT Expert

Role

The short term expert will be responsible for establishing an organized IT system allowing for professional, responsive and result-oriented conduct, monitoring and evaluation of marketing activities as well as transparent communication with potential customers, delivering relevant training.

Profile

Qualification, experience and skills

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• Must be acquainted with IT systems used by IPA;


• An employee of an IPA in an EU MS;

• Shall have working experience in similar projects,


• Experience in delivering trainings on usage of IT system after its creation. STE 3: Marketing Experts

Role

The short term marketing experts will be responsible for advising on such topics as sector-based marketing studies, development of marketing database, delivering relevant training.

Profile


• University Degree in Marketing, Business Economics or Business Administration;


• PC literacy;



• Employees of an IPA in an EU MS;




• Preferably 5 years professional experience in such topics as sector-based marketing studies, development of marketing database, monitoring and evaluation systems of investment promotional activity effectiveness. Experience in delivering trainings on sector-based marketing studies, development of Marketing database, carrying out investment promotion campaigns, monitoring and evaluation systems of investment promotional activity effectiveness.

STE 4: PR/Media Strategy Expert

Role

The short term media strategy expert will be responsible for advising on development of correspondent Sector Specific Brochures for potential foreign investors in perspective branches of Ukrainian economy as well as for delivering trainings on effective promotion campaign and monitoring and evaluation systems of investment promotional activity effectiveness.

Profile



• PC literacy;

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• Sound have theoretical and practical experience in graphic design for promotional materials for investment promotion;

• Experience in delivering trainings;

• Working experience in similar projects;

• Preferably 5 years relevant international experience. STE 5: HRM Expert

The short term HRM expert will be responsible for assistance in establishing HRM system that motivates performance, achievement of results, collegial relationships at work, provides professional training and career development and numerous support activities that encourage individual and team excellence. Also he/she will assist in development of common body of training material for the training courses and activities in investor servicing and aftercare, conducting effective investment promotion campaigns, presentation skills development, sector-based marketing, development of local economic development standard and project cycle management. Also he/she will advise on evaluating the performance of staff undergoing the internal training programme, deliver relevant training.

Profile


• University level education;

• Professional qualification in HRM;


• PC literacy;







• Sound have theoretical and practical experience in HRM, preferably in assessment and evaluation;

• Sound theoretical and practical experience in investment promotion techniques and policies would be an asset;


• Preferably 5 years relevant international experience.

STE 6: Legal Expert

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The short term Legal expert will be responsible for strategy development and establishment of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies. Also he/she will conduct special training for the IUs representatives in strategy implementation for the establishment of the BAPSD.

Profile


• University level education;

• Professional qualification in Law;


• PC literacy;







• Sound have theoretical and practical experience in Law;


• Preferably 5 years relevant international experience;

• Proficiency to consult the legal department of the IU on issues of activity of the Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies.

4. INSTITUTIONAL FRAMEWORK

Responsible Institution in the Beneficiary Country The Ukrainian Center for Foreign Investment Promotion (InvestUkraine) 36, Raevskogo Street Kyiv, 01042 Ukraine

Focal Point:

First Deputy Director Mr Serhii Hopersky Phone: +38 044 537 73 13 Fax: +38 044 537 73 11 E-mail: [email protected] 5. BUDGET

The budget of this project is 1.4MEuro, which is a maximum ceiling.

6. IMPLEMENTING ARRANGEMENTS 6.1 Implementing Agency

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EC Delegation to Ukraine Grigorios Kontzoglou Project Manager Delegation of the European Commission to Ukraine 10, Kruhlouniversytetska Street Kyiv 01024, Ukraine Tel: + 38 (044) 3908010 Fax: + 38 (044) 2534547 E-mail : [email protected] PAO will support the Twinning project implementation process together with the Delegation of the European Commission to Ukraine. Twinning Programme Administration Office (PAO) Ms Tetyana Kovtun, PAO Director 15, Prorizna Street Kyiv 01601, Ukraine Tel.: +38 (044) 278 36 50 Fax: +38 (044) 278 36 22 E-mail: [email protected]; [email protected] 6.2 Beneficiary Institution

The beneficiary institution for the twinning project will be the Ukrainian Center for Foreign Investment Promotion (InvestUkraine), which will also assume responsibility for the administration relating to the preparation, control, and implementation of the project.

The contact person in InvestUkraine for the twinning contract will be:

Mr Ihor Nikolaiko Director The Ukrainian Center for Foreign Investment Promotion (InvestUkraine) 36, Raevskogo Street Kyiv, Ukraine Phone: +38 044 537 73 13 Fax: +38 044 537 73 11 E-mail: [email protected] 6.2.1 Ukrainian Project Leader

The Director of IU has nominated Mr Serhii Hopersky as the Beneficiary Project Leader. He will act as the counterpart of the Member State Project Leader and will ensure close co-operation of the overall steering and co-ordination of the project, ensuring operational dialogue and support at political level. His seniority will ensure his ability to mobilise the necessary staff in support of the efficient implementation of the project. He will also co-ordinate the Project Steering Committee (PSC) from the Ukrainian side.

6.2.2 RTA Counterpart: Mr. Denys Kryschenko Position: Head of Investor Services Department The Ukrainian Center for Foreign Investment Promotion (InvestUkraine) 36, Raevskogo Street Kyiv, Ukraine Phone: +38 044 537 73 14 Fax: +38 044 537 73 11 E-mail: [email protected]

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7. IMPLEMENTING SCHEDULE (INDICATIVE) 7.1 Launching of the call for proposals

November 2008

7.2 Start of project activities

July 2009

7.3 Project implementation period The Action's implementation period (legal duration) is 24 months. This period includes the implementation period (work plan) increased by three months for the starting up and closure of the Action. 8. SUSTAINABILITY The achievements of the Twinning project (Mandatory Results) will be sustainable. They will be maintained as a permanent asset to/of the Beneficiary administration as a result of the following: • Strong obligations and commitment of IU to develop their activities and systems • Strong contacts of the IU across the public sector • IU’s committment to the promotion of FDI • IU’s multilingual staff • IU’s abilities to influence on the governmental level the foreign investment inflow to Ukraine as

the result of well-established contacts within public sector. The sustainability issues will be further elaborated in the course of preparation of the project Contract. 9. CROSSCUTTING ISSUES Equal Opportunity Overall, FDI affects aggregate employment and also have a strong influence on domestic employment through types of jobs created, regional distribution of new employment, wage levels, income distribution and skills transfer. Investment promotion, the creation of a business-friendly environment for the attraction of FDI is a major goal of IU. Thus, strengthening institutional capacities of IU will potentially have a positive contribution to the potential development of employment in Ukraine. With regard to the twinning project, equal opportunity principles and practices will be adopted to ensure equitable gender participation in the project. Male and female participation in the project will be based on the relevant standards of the EU and will be assured by official announcements published to recruit staff needed for the project. The main criteria for recruitment of the RTA and STE will be based on appropriate qualifications and experience in similar projects regardless of gender. The dimension of equal opportunity and gender equality will be integrated into all levels of the project. This will establish a suitable foundation to mainstream gender equality in the future. It will be included in the project contract as a joint responsibility of the MS partner and BC institution. 10. CONDITIONALITY AND SEQUENCING

Contributions expected from the beneficiary institution include: • strong involvement/commitment of IU staff at all levels; • assigning/employing the necessary personnel to activities connected with the project; • ensuring co-ordination between institutions connected with the project; • ensuring access to all necessary information and documents; • supply of office accommodation, equipped with computer, telephone, internet access, printer,

photocopier to MS in-country staff and visiting experts; • providing suitable venues and equipment for training sessions and seminars that will be held under

the project, • designating an IU’s counterpart for each MS key expert (responsible of component).

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ANNEXES Annex 1 Logical Framework Matrix

Annex 2 Indicative Implementation Chart for Twinning Activities

Annex 3 Legal barriers to foreign investment in Ukraine

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Annex 1: Logical Framework Matrix

Enhancing performance of InvestUkraine: the Ukrainian Center for Foreign Investment Promotion in line with best European practices Twinning number: UA08/ ENP-PCA / FI /xx Overall objective Measurable Indicators Means of Verification Assumptions

Development and implementation of foreign investment promotion in Ukraine in line with internationally recognized practices

Increase of the FDI attracted by Ukraine

Official publications of the government and international financial organisations.

Project Purpose Measurable Indicators Means of Verification Assumptions

Enhanced capacities and improved performance of the Ukrainian Center for Foreign Investment Promotion (InvestUkraine) to fulfil promotion functions in accordance with leading European practices

Increase of the FDI inflow with the assistance of InvestUkraine

Annual reports of the Agency;

Analyses of IFIs, etc.

Project beneficiary fully prepared for arrival of RTA (pre-condition).

Full commitment to the project by InvestUkraine.

Fulfilment of the InvestUkraine Project Leader and RTA Counterpart.

Continued involvement of the MS RTA.

Professional input from STEs.

Component 1: Advisory assistance from EU experts to improve the IPA's institutional and operational capacities Mandatory Results Measurable Indicators Means of Verification Assumptions

Result 1.1. Marketing capabilities of InvestUkraine are improved.

1.1 Sector-based marketing studies are conducted.

1.2 Marketing Database is developed. 1.3 Monitoring and evaluation

1.1 Marketing reports; Sector-based marketing brochures; observance at meetings; minutes of meetings; record of attendance of “round-table”; annual report on the IU’s activities. 1.2 Marketing Database; observance at meetings; minutes of meetings; attendance of meetings by members of working group; record of attendance; annual report on the IU’s activities. 1.3 Attendance of meetings by members of working



Comprehensive FDI Attraction Strategy checklist prepared by the IU.

Top managers attend the presentations and meetings.

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Result 1.2. Operational capabilities of InvestUkraine are enhanced .

systems for the assessment of the IU’s promotional activity are designed. 1.1. New Inquiries processing system in line with best European practices is created 1.2. Sites database is developed. 1.3. Systems and procedures for Project Cycle Management starting from the site visit to ‘factory’ opening are elaborated. 1.4. The Local Economic Development Standard is developed 1.5. The Industrial Property database is developed 1.6. The strategic plan for the development of the Strategic Industrial Zones in large agglomerations/near important transportation corridors/gateways is elaborated. 1.7. The Community and Regional Information Standards for partner cities/regions are elaborated and the system to collect and update the

group; minutes of meetings; record of attendance; annual report on the IU’s activities, software; physical documents. 1.1. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.2. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.3. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.4. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.5. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.6. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents. 1.7 Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents.




Top managers attend the presentations and meetings

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Result 1.3. IT capacities of InvestUkraine are enhanced. Result 1.4. HR management capacities of InvestUkraine are enhanced.

information to be provided in support of site information included in responses to inquiries is developed. 1.1. A professional, responsive, results-oriented, IT system is developed and implemented. 1.1. A new IU’s Human Resource Management System is developed and implemented. 1.2. A Bureau of Assisting Pre-court Settlement of Disputes Between Foreign Investors and State Bodies is established and the strategy for the BAPSD’s development is elaborated.

1.1. Attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities; software; physical documents, products of the IT system. 1.1. Physical documents: ‘Key Findings Report’; strategy for the new Human Resource Management System; attendance of meetings by members of working group; observance at meetings; minutes of meetings; record of attendance; annual report on the IU’s activities. 1.2. Physical documents: ‘Strategy for the New Human Resource Management System’ and ‘Action Plan for Setting Up the BAPSD’; attendance of meetings by members of working group; minutes of meetings; record of attendance; annual report on the IU’s activities.




Top managers attend the presentations and meetings Full commitment to the project by InvestUkraine. Professional input from STEs. Comprehensive FDI Attraction Strategy checklist prepared by the IU. Top managers attend the presentations and meetings

Activities Means/Inputs Assumptions

1.1.1 Set up a Working Group responsible for conducting Sector-based marketing studies in two perspective branches of Ukrainian economy (e.g. agriculture, alternative energy) 1.1.2 Assist in conducting Sector-based marketing

1.1.1 Identify representatives to serve on the group; establish outline terms of reference (to be approved by the group); provide one officer with a secretariat function to facilitate the group’s activities; agree a programme of activity and schedule of meetings; logistical arrangements for the meeting (date, venue); discussion of findings and proposals at working groups meetings; short term expert to compile report.

1.1.2 RTA, Marketing STE together with representatives of the IU conduct Sector-based

Working groups' representatives are able to reach agreement.

All relevant documents are available (translated into designated language) for

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studies (in 2 prospective braches of Ukrainian economy) based on a sound methodological approach chosen and justified 1.1.3 Organize a ‘round-table’ discussion to agree upon

the design and production of a package of Sector-based specific brochures in 2 prospective sectors of Ukrainian economy

1.1.4 Set up a Working Group responsible for the

development of Marketing Database to store current and potential investors in key sectors of Ukrainian economy

1.1.5. Assist in the development of Marketing Database. 1.1.6. Review of current IU’s promotional activity. 1.1.7. Assist in designing monitoring and evaluation

systems for the assessment of the IU’s promotional activity

1.2.1. Set up a Working Group responsible for the

development of a new Inquires Processing System.

1.2.2. Review of the existing Inquiries Processing

System and produce ‘Key Findings Report’. 1.2.3. Assist in developing of a new (revised) Inquiries

Processing System in line with best European practices

marketing studies in 2 prospective braches of Ukrainian economy. The results of such marketing studies are printed. It is foreseen a supply of translation and interpretation services

1.1.3 Identify representatives to participate in a ‘round-table’ discussion; logistical

arrangements for the meeting (date, venue); discussion of findings and proposals at meetings; short term expert to compile report. It is foreseen a supply of translation and interpretation services

1.1.4. Identify representatives to serve on the group; establish outline terms of reference (to

be approved by the group); provide one officer with a secretariat function to facilitate the group’s activities; agree a programme of activity and schedule of meetings; logistical arrangements for the meeting (date, venue); discussion of findings and proposals at working groups meetings; short term expert to compile report.

1.1.5. RTA, Marketing STE together with representatives of the IU develop such Marketing

Database. It is foreseen a supply of translation and interpretation services and software

1.1.6. RTA, PR STE together with representatives of the IU review current IU’s

promotional activity. It is foreseen a supply of translation and interpretation services. 1.1.7. RTA, PR STE together with representatives of the IU review the current IU’s

promotional activity. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation services.



1.2.2. RTA, Operational STE together with representatives of the IU review the current

IU’s inquiries processing system. The paper-based ‘Key Findings Report’ is produced. It is foreseen a supply of translation and interpretation services.

1.2.3. RTA, Operational STE together with representatives of the IU develop new inquiries

processing system. The relevant software and documents are produced. A supply of translation and interpretation services and software is foreseen.

review.

Proposed amendments are drafted by local experts.

Top managers attend the meetings.

The consultations will be followed by signing of correspondent Decree of the Cabinet of Ministers of Ukraine or the State Agency of Ukraine for Investment and Innovations and Bureau of assisting pre-court settlement of disputes between foreign investors and state bodies will be established in the IU.

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development of Sites database. 1.2.5. Assist in developing of the Sites database 1.2.6. Set up a Working Group responsible for the

elaboration of systems and procedures for Project Cycle Management starting from the site visit to ‘factory’ opening.

1.2.7. Assist in the elaboration of systems and

procedures for Project Cycle Management starting from the site visit to ‘factory’ opening.

1.2.8. Set up a Working Group responsible for the Local

Economic Development Standard. 1.2.9. Assist in the development of the Local Economic

Development Standard. 1.2.10. Set up a Working Group responsible for the

development of Industrial Property database. 1.2.11. Assist in the development of the Industrial



1.2.5. RTA, Operational STE together with representatives of the IU develop Sites

database. The relevant software and documents are produced. A supply of translation and interpretation services and software is foreseen.



1.2.7. RTA, Operational STE together with representatives of the IU elaborate systems and

procedures for Project Cycle Management. The relevant software and documents are produced. A supply of translation and interpretation services and software is foreseen.



1.2.9. RTA, Operational STE together with representatives of the IU develop the Local

Economic Development Standard. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation services and software.



1.2.11. RTA, Operational STE together with representatives of the IU develop the Industrial

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Property database. 1.2.12. Set up a Working Group responsible for the

identification and elaboration of the strategic plan for the development of the Strategic Industrial Zones in large agglomerations/near important transportation corridors/gateways.

1.2.13. Assist in identification and elaboration of the

strategic plan for the development of the Strategic Industrial Zones in large agglomerations/near important transportation corridors/gateways.


elaboration of the Community and Regional Information Standards for partner cities/regions and the development of the system to collect and update the information to be provided in support of site information included in responses to inquiries.

1.2.15. Assist in elaboration of the Community and

Regional Information Standards for partner cities/regions.

1.2.16. Assist in the development of the system to collect

and update the information to be provided in support of site information included in responses to inquiries.


development and implementation of professional, responsive, results-oriented, based on current IU’s needs IT system.

Property database. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation services.



1.2.13. RTA, Operational STE together with representatives of the IU elaborate the strategic

plan for the development of the Strategic Industrial Zones in large agglomerations/near important transportation corridors/gateways. The relevant document is produced. It is foreseen a supply of translation and interpretation services.



1.2.15. RTA, Operational STE together with representatives of the IU elaborate the

Community and Regional Information Standards. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation services.

1.2.16. RTA, Operational STE together with representatives of the IU develop the system to

collect and update the information to be provided in support of site information included in responses to inquiries. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation and software.


be approved by the group); provide one officer with a secretariat function to facilitate the group’s activities; agree a programme of activity and schedule of meetings; logistical arrangements for the meeting (date, venue); discussion of findings and proposals at working groups meetings; short term expert to compile report

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1.3.2. Review of current IT system at IU and specify the needs.

1.3.3. Assist in the development of upgraded

professional, responsive, results-oriented IT system, based on current IU’s needs.

1.3.4. Assist in the implementation of upgraded

professional, responsive, results-oriented IT system, based on current IU’s needs.


strategy development and implementation of the new IU’s Human Resource Management System.

1.4.2. Review of current Human Resource Management

System at the IU and produce ‘Key Findings Report’, which contains proposed amendments for the latter aligned with EU best practices.

1.4.3. Assist in the strategy development for the new

Human Resource Management System, which motivates performance, achievement of results, collegial relationship at work, provides professional training and career development, boosts individual and team excellence.

1.4.4. Assist in the implementation of a new IU’s

Human Resource Management System, which motivates performance, achievement of results, collegial relationship at work, provides professional training and career development, boosts individual and team excellence.

1.4.5. Set up a Working Group responsible for strategy

development and establishment of the Bureau of Assisting Pre-court Settlement of Disputes

1.3.2. RTA, IT STE together with representatives of the IU review the current IU’s IT system and specify needs of the IU regarding the new system. It is foreseen a supply of translation and interpretation services.

1.3.3. RTA, IT STE together with representatives of the IU develop upgraded professional,

responsive, results-oriented IT system. The relevant software is produced. It is foreseen a supply of translation and interpretation services.

1.3.4. RTA, IT STE together with representatives of the IU develop upgraded professional,

responsive, results-oriented IT system. It is foreseen a supply of translation and interpretation services and software.



1.4.2. RTA, HR STE together with representatives of the IU review the current IU’s HRM

system and specify needs of the IU regarding the new system. The paper-based ‘Key Findings Report’ is produced. It is foreseen a supply of translation and interpretation services.

1.4.3. RTA, HR STE together with representatives of the IU develop the new IU’s Human

Resource Management System. The paper-based ‘Key Findings Report’ is produced. The relevant software and documents are produced. It is foreseen a supply of translation and interpretation services.

1.4.4. RTA, HR STE together with representatives of the IU implement the new IU’s Human

Resource Management System within the IU. It is foreseen a supply of translation and interpretation services.

1.4.5. Identify representatives of the legal department to participate in consultations; logistical

arrangements for the meeting (date, venue); discussion of findings and proposals at working group meetings; short term expert to compile report.

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Between Foreign Investors and State Bodies (BAPSD).

1.4.6. Review current needs of the IU for BAPSD. 1.4.7. Assist in strategy development for the BAPSD

and write a ‘Strategy paper’ for the establishment of BAPSD within the IU.

1.4.8. Assist in elaboration of the Action Plan for setting

up the BAPSD within IU. 1.4.9. Assist in implementation of the Action Plan for

setting up the BAPSD within IU.

1.4.6. RTA, Operational STE, Legal STE together with representatives of the IU review the

current needs at the IU for BAPSD. It is foreseen a supply of translation and interpretation services.

1.4.7. RTA, Operational STE, Legal STE together with representatives of the IU develop the

strategy for the BAPSD. It is foreseen a supply of translation and interpretation services. 1.4.8. RTA, Operational STE, Legal STE together with representatives of the IU establish the

Action Plan for setting up the BAPSD within IU. It is foreseen a supply of translation and interpretation services.

1.4.9. RTA, Operational STE, Legal STE together with representatives of the IU implement the Action Plan for setting up the BAPSD within IU. It is foreseen a supply of translation and interpretation services.

Component 2: Training Mandatory Results Measurable Indicators Means of Verification Assumptions

Result 2.1. Training curricula is developed.

Result 2.2. Knowledge and experience of InvestUkraine in marketing is enhanced.

2.1. The Training curricula together with the unified consistent training materials for the training courses in marketing, PR, operational and legal issues resolution, IT, HRM, strategy design are elaborated 2.1. Training programme for the conduction of the Sector-based marketing studies is implemented 2.2. Training programme in the development of Marketing database is implemented.

2.1 Formal record of approval; attendance registers; trainers’ reports. Number of meetings are held; position of attendees; level of attendance; details set out in training programme approved by MS Project Leader and BI Project Leader. Completed training material approved by MS and beneficiary 2.1. Seminar and study visit are held; position; attendance registers; trainers’ reports. of attendees; level of attendance 2.2. Workshops are held; position of attendees; level of attendance;


Professional input from STEs

Beneficiary provides all necessary logistical support Training programme and schedule are realistic. Beneficiary provides all necessary logistical support. Training STEs stick to the structure of the training material

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Result 2.3. Knowledge and experience of InvestUkraine in EU conform operational services is enhanced.

2.3. Training programme in carrying out an effective and efficient investment promotion campaigns in line with best EU practices is implemented. 2.1. Training programme in provision of efficient investor services and aftercare in line with best EU practices is implemented. 2.2. Training programme in usage of the Local Economic Development Standard, as well as Regional and Community Standards for fostering local/regional economic development through encouraging cities’ involvement in local development economic initiatives, such as the preparation of strategic plans which dealt with improvements in the business infrastructure and quality of a local investment climate is implemented. 2.3. Training programme in implementing of newly elaborated systems and procedures of Project Cycle Management from site visit to ‘factory’ opening is implemented. 2.4. Training programme in the development of Sites database and Industrial Property database is implemented.

attendance registers; trainers’ reports. 2.3. Workshops and study visit are held; position of attendees; level of attendance; attendance registers; trainers’ reports. 2.1. Workshops and study visit are held; position of attendees; level of attendance; completed tests by trainees; written assessment by trainer; attendance registers; trainers’ reports. 2.2. Workshops and study visit are held; position of attendees; level of attendance. 2.3. Workshop and study visit are held; position of attendees; level of attendance; completed tests by trainee; written assessment by trainer; attendance registers; trainers’ reports. 2.4. Workshops are held; position of attendees; level of attendance; attendance registers; trainers’ reports

provided. Sufficient top managers are designated to go to internal seminars, attend them, and show commitment to the process. The staff put forward for training are of sufficient calibre. IU’s staff selected to receive specialist training are receptive to new work approach. Training programme and schedule are realistic. Beneficiary provides all necessary logistical support. Training STEs stick to the structure of the training material provided. Sufficient top managers are designated to go to internal seminars, attend them, and show commitment to the process. The staff put forward for training are of sufficient calibre. IU’s staff selected to receive specialist training are receptive to new work approach.

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Result 2.4. IT system is supported by increased knowledge and experience of the IU’s designated staff. Result 2.5. Knowledge and experience of IU designated staff in HR issues and organizational development issues is enhanced.

2.1. Training programme in implementing of effective IT system designed for the IU is implemented. 2.1. Training programme in implementing of effective Human Resource Management system designed for the IU is implemented. 2.2. Training programme in implementing of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies is implemented.

2.1. Workshop and study visit are held; position of attendees; level of attendance; completed tests by trainee; written assessment by trainer; attendance registers; trainers’ reports. 2.1 Workshop and study visit are held; position of attendees; level of attendance; attendance registers; trainers’ reports. 2.2. Workshop and study visit are held; position of attendees; level of attendance; attendance registers; trainers’ reports.

Training programme and schedule are realistic. Beneficiary provides all necessary logistical support. Training STEs stick to the structure of the training material provided. Sufficient top managers are designated to go to internal seminars, attend them, and show commitment to the process. The staff put forward for training are of sufficient calibre. IU’s staff selected to receive specialist training are receptive to new work approach. Training programme and schedule are realistic. Beneficiary provides all necessary logistical support. Training STEs stick to the structure of the training material provided. Sufficient top managers are designated to go to internal seminars, attend them, and show commitment to the process. The staff put forward for training are of sufficient calibre. IU’s staff selected to receive specialist training are receptive to new work approach.

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Activities Means/Inputs Assumptions

2.1.1 Assist in conducting Training Needs Analysis (TNA) of

IU’s staff in marketing, PR, operational and legal issues resolution, IT, HRM.

2.1.2. Assist in the development of the Curricula training together

with the unified consistent training materials for carrying out the training courses for the IU’s staff in marketing, PR, operational and legal issues resolution, IT, HRM.

2.2.1 Workshop/seminar: basic training for all representatives of

the IU, State Agency, regional oblast administrations in conducting Sector-based marketing studies using relevant methodological approaches aligned with best EU practices.

2.2.2 Workshop: special training for only IU’s representatives in

conducting Sector-based marketing studies using relevant methodological approaches aligned with best EU practices.

2.2.3 Study visit for 5 IU’s specialists to familiarize with the work

of Marketing and PR Departments of IU’s MS partner (e.g. Sector-based marketing studies, promotional campaigns and their monitoring and evaluation etc).

2.2.4. Workshops (2 at least) for the representatives of the

respective departments of the IU, participating in the development of Marketing database of current and potential investors.

2.2.5. Workshops (2 at least) for the representatives of the

respective departments of the IU on how to navigate, maintain and introduce upgrades to already developed Marketing database.

2.2.6. Workshop/seminar: basic training for all representatives of

2.1.1 RTA, Marketing STE, PR STE, Operational STE, Legal STE, IT STE and HR STE together with the IU’s representatives conduct Training Needs Analysis (TNA) of IU’s staff in marketing, PR, operational and legal issues resolution, IT, HRM. It is foreseen a supply of translation and interpretation services. 2.1.2 Identification of all the separate activities and the lead times involved, particularly where events depend upon earlier tasks. RTA to agree basic structure of each course with BI Project Leader; short term expert(s) to develop training material; material to be piloted and revised. It is foreseen a supply of translation and interpretation services and training materials. 2.2.1 RTA to agree basic structure of workshop with BI Project Leader; short term expert to develop presentation material and deliver presentations. It is foreseen a supply of translation and interpretation services and training materials. 2.2.2 RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.2.3 RTA to agree with BI on study visit for the IU’s staff to the office MS partner. The MS partner’s organizational assistance is such visit. 2.2.4. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.2.5. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.2.6. RTA to agree basic structure of workshops with BI Project Leader; short

RTA has a good understanding of the training processes and requirements. Training material produced by experts is of a high quality and suitably tailored to circumstances in Ukraine. Top managers are designated to attend seminars and show commitment to the process. Staff put forward for training are fluent in English. A high percentage of trainees complete the training programme. Materials on Sector-based Marketing studies, Investment Promotion campaign, Investor Services and Aftercare, Local Economic Development Standard can be passed in Ukrainian or Russian language and there is a presence of local authorities’ officials in the seminar. IU staff selected to receive specialist training are receptive to new work approaches and capable of moving away from the current approaches.

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IU, State Agency, regional oblast administrations in carrying out an effective and efficient investment promotion campaigns in line with best EU practices.

2.2.7. Workshop: special training for only IU’s representatives in

carrying out an effective and efficient investment promotion campaigns as well as monitoring and evaluating of the promotional activities of the Investment Promotion Agency.

2.2.8. Study tour for 5 IU’s specialists to familiarize with the work

of Investor Services and Regional Cooperation departments of the MS partner agency.


the IU, State Agency, regional oblast administrations in provision of efficient investor services and aftercare in line with best EU practices.

2.3.2. Workshop: special training for only IU’s representatives in

implementing effective and efficient investor services and aftercare and monitoring indicators of these services in line with best EU practices.


the IU, State Agency, regional oblast administrations in usage of the Local Economic Standard, as well as Regional and Community Standards for fostering local/regional economic development through encouraging cities’ involvement in local development economic initiatives, such as the preparation of strategic plans which dealt with improvements in the business infrastructure and quality of a local investment climate.

2.3.4. Workshop: special training for only IUs representatives in

development and usage of the Local Economic Standard, as well as Regional and Community Standards.

term expert to develop presentation material and deliver presentations. It is foreseen a supply of translation and interpretation services and training materials. 2.2.7. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation and interpretation services. 2.2.8. RTA to agree with BI on study visit for the IU’s staff to the office MS partner. The MS partner’s organizational assistance is such visit. 2.3.1. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations. It is foreseen a supply of translation and interpretation services and training materials. 2.3.2. RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; put in place the necessary logistical arrangements for staff completing the training to sit examinations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation and interpretation services. 2.3.3. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations. It is foreseen a supply of translation and interpretation services and training materials. 2.3.4. RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; put in place the necessary logistical arrangements for staff completing the training to sit

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2.3.5. Study tour for 5 IUs specialists to familiarize with the usage

of the Local Economic Standard and Regional and Community Standards in the MS partner agency.

2.3.6. Workshop/seminar: special training for the IU’s

representatives only in implementing of newly elaborated systems and procedures of Project Cycle Management from site visit to ‘factory’ opening.

2.3.7. Study visit for 5 IU’s specialists to the office of the MS

partner to familiarize with systems and procedures of Project Cycle Management.

2.3.8. Series of workshops (2 at least) for the representatives of the

respective departments of the IU, participating in the development of Sites database and Industrial Property database.

2.3.9. Series of workshops (2 at least) for the representatives of the

respective departments of the IU on how to navigate, maintain and introduce upgrades to already developed databases (SD, IPD).

2.4.1. Workshop/seminar: special training for the IUs

representatives in strategy implementation of effective IT system designed for the IU.


representatives in strategy implementation of effective Human Resource Management system designed for the IU.

examinations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.3.5. RTA to agree with BI on study visit for the IU’s staff to the office MS partner. The MS partner’s organizational assistance is such visit. 2.3.6. RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; put in place the necessary logistical arrangements for staff completing the training to sit examinations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.3.7. RTA to agree with BI on study visit for the IU’s staff to the office MS partner. The MS partner’s organizational assistance is such visit. 2.3.8. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.3.9. RTA to agree basic structure of workshops with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.4.1 RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; put in place the necessary logistical arrangements for staff completing the training to sit examinations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation services. 2.5.1. RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation and interpretation

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representatives in the establishment of the Bureau of Assisting Pre-court Settlement of Disputes (BAPSD) Between Foreign Investors and State Bodies.

2.5.3. Study visit for 5 IU’s specialists from IT, HR and LD departments to the office of the MS partner.

services. 2.5.2. RTA to agree basic structure of seminar with BI Project Leader; short term expert to develop presentation material and deliver presentations; short term expert to carry out assessment of trainees’ learning and to deliver specialist ‘train the trainer’ training. It is foreseen a supply of translation and interpretation services. 2.5.3. RTA to agree with BI on study visit for the IU’s staff to the office MS partner. The MS partner’s organizational assistance is such visit. It is foreseen a supply of interpretation services.

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Annex 2 – Indicative Implementation Chart (showing total duration of activities not actual input)

Implementation of Twinning Activities – By Month

Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.1.1 1.1.2

1.1.3

1.1.4

1.1.5

1.1.6

1.1.7

1.2.1

1.2.2

1.2.3

1.2.4

1.2.5

1.2.6

1.2.7

1.2.8

1.2.9

1.2.10

1.2.11

1.2.12

1.2.13

1.2.14

1.2.15

1.2.16

1.3.1

1.3.2

1.3.3

1.3.4

1.4.1 1.4.2 1.4.3 1.4.4 1.4.5

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Activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.4.6 1.4.7 1.4.8 1.4.9 2.1.1 2.1.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7 2.3.8 2.3.9 2.4.1 2.5.1 2.5.2 2.5.3

Component 1 Preparation and reporting Component 2

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Annex 3. Legal barriers to foreign investment in Ukraine

• The Civil Code covers relations among both individuals and legal entities and is generally market-oriented. However it contains many conflicting rules and laws, which act as an impediment to enterprise development and investment. At the same time this Code has very little or no coordination with the Commercial Code of Ukraine. Thus, Ukraine has two fundamental laws, regulating largely the same subject, but being conceptually opposite and containing numerous specific conflicts. The consequences of this situation create breeding ground for corruption at the regulatory authorities and in the court system. At the same time the good quality corporate laws (Law on Joint-Stock Companies and Law on Limited Liability Companies) cannot be developed until the problems of the irreconcilable Civil and Commercial Codes are resolved.

• The antimonopoly legislation of Ukraine force companies to seek the Antimonopoly Committee’s approval of actions that really have no bearing on competition in the Ukrainian market at all.

• The artificial, unnecessary, overly expensive and steadily increasing involvement of notaries exists in many aspects of business relations.

• The so-called ’90-days rule’ is still in force: the tax authorities impose severe fines and sanctions when a Ukrainian business fails to receive hard currency proceeds from sales (in case of export contracts), or goods (in case of import contracts), under its international contracts within 90 days of the due date

• Unnecessary obstacles and hidden charges exist also in the area of currency regime.

• There are ongoing restrictions on land ownership for foreign investors, whereby Ukrainian subsidiaries of foreign companies still cannot acquire ownership of land plots in Ukraine.

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