Strategic roadmap for public-private partnerships in Lviv
The City of Lviv, Ukraine, seeks to strengthen its capacity to design and implement innovative urban development projects through public-private partnerships (PPP). Currently, the city is focused on planning the construction and management of a memorial park and crematorium using the PPP model. This endeavour faces significant challenges, including navigating regulatory constraints and adhering to European standards as Ukraine progresses toward EU integration. The City of Lviv seeks strategic guidance on the most effective PPP model to address these challenges and support future urban development projects aligned with European standards.
Policy challenges
The City of Lviv is facing a critical shortage of burial spaces and a growing need for crematoriums, driven by rising death rates, internal migration, and a cultural shift toward cremation. With limited local funds due to the ongoing Russian invasion of Ukraine, Lviv is exploring public-private partnerships (PPP) to finance and manage new crematoriums. Despite Ukrainian laws prohibiting private crematoriums, the city aims to study international models and find ways to attract private investment while adhering to regulations.
Peers from across Europe
Alongside our host, Hanna Shypilova, Policy Analyst for the City of Lviv, and Thematic Experts Arnault Morission and Marc Pattinson, three distinguished peers participated in the matchmaking:
Key insights
During the online matchmaking, several key recommendations were shared by peers to help the City of Lviv navigate public-private partnership (PPP) initiatives for crematoriums and memorial parks. These insights address the city’s questions and challenges as it pursues such projects.
- Combine diverse funding sources at different stages to reflect project cash flow.
- Utilise international and European funds to provide more trust from local and national entities.
- Conduct market analysis and market testing to assess user affordability. Consider a concession model based on user fees, with potential subsidies for those unable to afford the service.
- BTO (Build-Transfer-Operate) model is recommended, with a concession agreement backed by minimum revenue guarantees or additional funds from national or EU/international sources.
- Concession agreements should be tested against current legislation to determine their suitability.
- Develop a pipeline of projects through an infrastructure strategy, ideally more than just one crematorium.
- Build trust with private partners by sharing success stories and working with a political champion to advocate for the project.
- Ensure availability of funding and understand what makes the project attractive to the private sector.
- Conduct market testing to clarify expectations and visit existing crematoriums to gain insight into operational challenges.
- Provide certainty to private partners by stabilising their cash flow through mechanisms like minimum revenue guarantees or additional services.
- Study frontrunners in crematorium services, like Japan, to understand profitable trends and additional service offerings.
- Explore how cultural considerations in Lviv may influence acceptance, involving key stakeholders like the Orthodox Church to ensure alignment with local values.
- Expand offerings beyond cremation, including cemetery management, body conservation, transportation, and ash management.
- Develop more than one project to spread risk and increase opportunities for profit.
- Ensure the duration of the concession is appropriate for long-term profitability.
- Explore potential subsidies as a guarantee for the project's long-term viability.
- Seek access to public funding from international, European, and national sources to support the project’s financial sustainability.
Additional sources
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Interreg Europe policy brief on spaces for innovation
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Interreg Europe editorial on public private partnerships
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World Bank Public-Private Partnership Resource Centre
- World Bank Benchmarking Infrastructure Development
Peer review publication
Find more information on the methodology and experiences of previous beneficiaries in our publication.
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