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Analysis of the Resolution of the Cabinet of Ministers of Ukraine dated October 18, 2024, No. 1189
General Provisions
The Resolution of the Cabinet of Ministers of Ukraine dated October 18, 2024, No. 1189 amends previous resolutions dated September 5, 2007, No. 1090, and January 27, 2016, No. 70. These amendments pertain to the procedure for the implementation of budget programs financed by international financial organizations (IFOs), as well as the processes for the preparation, implementation, monitoring, and completion of economic and social development projects in Ukraine.
Amendments to Resolution No. 1090 dated September 5, 2007
1. Terminology Replacement
In the title of the resolution and in paragraphs 1 and 2, the terms “International Bank for Reconstruction and Development and International Development Association” are replaced with “international financial organizations.” This generalizes the list of financial institutions supporting development projects.
2. Treasury Service Procedures
The Treasury Service Procedures for funds allocated for the implementation of budget programs have been amended as follows:
- In the title of the Procedures, the phrase “International Bank for Reconstruction and Development and International Development Association” is replaced with “international financial organizations.”
- In paragraph 1, the terms “IBRD and/or IDA” are changed to “International Bank for Reconstruction and Development and/or International Development Association and/or Council of Europe Development Bank (hereinafter – IFO),” and the phrase “starting from July 1, 2007” is excluded.
- Paragraph 3 is supplemented with subparagraph 13-3, which requires accounting for purchased goods, works, services, as well as control over the use of budget funds, ensuring the storage of documents and access for auditors to conduct audits within the framework of project implementation.
- In paragraph 7, subparagraph 5, the term “payment orders” is changed to “payment instructions.” Subparagraph 7 is added, which ensures the reflection of operations in the hryvnia equivalent according to the relevant budget classification codes.
- In the text of the Procedures, the phrases “IBRD and/or IDA” are replaced with “IFO” and similar changes are made in Appendices 1, 3, 4, and 6.
Amendments to Resolution No. 70 dated January 27, 2016
1. Paragraph 2 – Definition of the Principal Executor
Paragraph 2 is supplemented with a new sentence defining the principal executor as the central executive authority responsible for the preparation, implementation, monitoring, and evaluation of the systemic project, as well as conducting audits. Consequently, paragraphs four to seventeen are renumbered as five to eighteen.
The sixteenth paragraph is supplemented with details regarding the increase of the grant and changes to the responsible executor.
2. Paragraph 11 – Change in the Notification Procedure to the Ministry of Finance
After the first paragraph, a new paragraph is added, which obliges the responsible executor to notify the Ministry of Finance about the change of the investment project coordinator or structural unit within a week. As a result, the second paragraph is moved to become the third paragraph.
3. Paragraph 14 – Expansion of Terminology
In the second paragraph of paragraph 14, the terms “credit project” and “signed credit” are changed to “credit/grant project” and “signed credit/grant” respectively, thereby expanding the coverage of contracts.
4. Paragraph 22 – Clarification of the Contract Translation Procedure
In the first paragraph of paragraph 22, the procedure for translating the contract into the Ukrainian language is clarified, adding a reference to the procedure for official translation approved by the Resolution of the Cabinet of Ministers of Ukraine dated March 29, 2024, No. 343.
5. Paragraph 26 – Coordination of Project Results
The third paragraph of paragraph 26 is supplemented with the phrase “in agreement with the Ministry of Finance,” indicating the necessity to coordinate the results of the implementation of the systemic project with the Ministry of Finance.
6. Paragraph 28 – Financing of Systemic Projects
A new paragraph is added, designating the principal executor as responsible for taking measures in financing the systemic project based on the achievement of indicators.
7. Paragraph 31 – Procedures for Submitting Contracts and Amendments
The paragraphs regarding the submission of copies of contracts and amendments that do not require ratification are supplemented, specifying deadlines and responsible persons. Changes clarify the executors of systemic project measures and the Ministry of Finance.
The fifth paragraph is supplemented with the obligation to coordinate proposals with the principal executor.
8. Paragraph 35 – Expansion of Terminology Regarding Financial Resources
In paragraph 35, the terminology is changed from “loan granted” to “loan and/or grant provided.” The list of international financial organizations is also expanded to include the International Development Association and the Council of Europe Development Bank, and the description of supported organizations is replaced with “international financial organizations.”
9. Paragraph 38 – Financial Self-Sufficiency of Projects
A new paragraph is added in paragraph 38, defining the procedure for assessing the financial condition of the beneficiary in the case of financial self-sufficiency of the project. Terminology in the sixth paragraph is also changed, and the paragraph number is shifted.
10. Paragraph 39 – Submission of Amendments to Contracts
Additions in the fourth paragraph include details regarding the translation of contracts into the Ukrainian language according to the established procedure. The tenth paragraph is edited for clarity regarding the process of submitting amendments to contracts, and the eleventh paragraph is modified for accuracy in references to paragraphs.
A new paragraph is added, obliging the responsible executor to sign amendments to the contract with the Ministry of Finance within two weeks after the amendments come into effect.
11. Paragraph 42 – Replacement of Terminology for the Responsible Executor
In paragraph 42, the words “Executors of measures” are changed to “Responsible executor,” and the phrase “as approved by the order of the Ministry of Finance” is removed. This clarifies and simplifies the naming of responsible persons.
Conclusion
Resolution No. 1189 dated October 18, 2024, introduced significant changes to the procedures for the execution and control of budget programs financed by international financial organizations. The main changes concern the update of terminology, clarification of accounting and reporting procedures, as well as the definition of roles and responsibilities of responsible executors. This fosters clearer regulation of financing and implementation processes for economic and social development projects in Ukraine.[:]
