Kiev, Ukraine, March 13, 2013—IFC,
a member of the World Bank Group, today announced new agreements with Ukraine’s
Ministry for Regional Development and its Builders Confederation to simplify
construction regulations and spur greater economic growth.
IFC’s Investment Climate for Agribusiness
project will work with government officials and a group representing over
700 building companies and industry groups to analyze the construction
permitting process and find ways to accelerate and simplify the system.
In Ukraine, it takes more than a full
year – 375 days, on average – to get all the necessary approvals to build
a simple grain storage facility. This often leaves farmers without much-needed
storage facilities, resulting in grain losses, and explains why the country
ranks 137th out of 185 countries in ease of dealing with construction permits,
according to Doing Business 2013, a report prepared by IFC and the World
“The system regulating construction
permits in Ukraine is old and very complex,” said Lev Partskhaladze, president
of the confederation. “We hope that with IFC’s help and expert advice
we will be able to make the necessary reforms, saving time and financial
resources for businesses.”
Jesper Kjaer, Regional Head of IFC Advisory
Services in Europe and Central Asia, said, “Our work aims to reduce the
cost of doing business and generate investment, boosting the private sector
and creating jobs. Simpler procedures for getting construction permits
are a real step forward to enhance the investment climate and develop infrastructure,
including in the agribusiness sector.”
IFC launched a three-year project in
Ukraine last year, partnering with the Swiss Confederation, to help streamline
agribusiness regulations in Ukraine, boosting economic growth and job creation.
The focus areas for the project include streamlining regulations for post-harvest
handling and storage investments, instilling modern food safety principles,
registering agricultural inputs and increasing resource and energy efficiency.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.