Ukraine adopts a new approach for urban planning, which impacts energy projects

On 17 January 2017 the Parliament of Ukraine adopted the Draft Law No. 4733-1 "On amendments to certain legislative acts regarding improvement of urban construction activities" ("the Draft Law"), which introduces a new approach for urban planning. On 8 February 2017 the Draft Law was signed by the President of Ukraine and on 10 February 2017 it was officially published as the Law No.1817-VIII ("the Law"). The Law will enter into force on 10 June 2017.

This Law eliminates the term "category of complexity" (where simple buildings and structures were assigned to category I and the most complex objects to category V) and replaces it with the term of "classes of consequences". The Law establishes 3 classes of consequences (responsibility) as follows:

СС1 – Low consequences;

СС2 – Medium consequences;

СС3 – High consequences.

The Law does not introduce an exhaustive list of criterions or examples for each category. The Law determines that project design organizations and developers will have to determine it on the basis of criteria in construction norms and provisions of the Law itself.

The Law impacts on every construction related project in Ukraine. In particular, the CC2 and CC3 construction objects will include renewable energy plants. That will involve the obligatory requirement to obtain construction permits and certificate from architectural and construction authorities for commissioning process after respective inspections. This novelty will substantially influence renewable energy sector. As of today most of the renewable power plants have the 3rd category of complexity and developers commission powers plants using declarations without mandatory inspections or documents (except for registration of declarations on a facility ready for operation). Construction of CC2 and CC3 objects will also require from developers to obtain a construction license or engage a licensed organization in contrast with the current state of affairs.  

Construction declarations for the 3rd or lower category of complexity objects registered before the entry into force by the Law will be valid unless cancelled by controlling architectural and construction authorities, in particular if they do not comply with construction norms etc.

This Law enables improvement of Ukrainian legislation for compliance with the European legislation based on the risk-management principles. The other important key reason for adoption was to eliminate confusions with erroneous classification of objects in order to avoid submission of the documents for consideration of the authorities and have necessary inspections/obtain permits.

For further information please contact Asters' counsel Yaroslav Petrov.

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