Today, during the meeting, the Committee of the Verkhovna Rada of Ukraine on Agrarian and Land Policy it was recommended that the members of Parliament adopt the draft law No. 7577 "On Amendments to Certain Legislative Acts on Improving the Management System of Engineering Infrastructure Objects of State-Owned Reclamation Systems." 20 committee members voted "for".

This is one of the important bills that will contribute to the further restoration of irrigation in Ukraine. It was developed by experts from the UAC, the USAID Agriculture Growing Rural Opportunities Activity (AGRO), the Ministry of Agrarian Policy and Food of Ukraine, and the Agrarian Committee of the Verkhovna Rada.

The adoption of draft law No. 7577 continues the reform in the field of irrigation and drainage, the first step of which was the adoption by the Verkhovna Rada of Ukraine of the Law of Ukraine "On Water User Organizations and Stimulation of Hydrotechnical Land Reclamation."

Bill No. 7577 enables:

  • To create operators of melioration systems of state property, which are formed as state non-commercial enterprises. This will provide more autonomy and flexibility in the management of reclamation systems.
  • Approve an effective mechanism for transferring state reclamation infrastructure to operators.
  • Include representatives of the agricultural and industrial sectors (service users) in the supervisory boards of established operators. This will make it possible to ensure effective management by those who are really interested in the successful development of the operator and ensure transparency of its financing.
  • To develop an effective tariff policy for the services of the water supply or drainage operator by introducing two-rate tariffs with fixed and variable components. Also fairly distribute costs among water users - "the one who consumes more water pays more." Include an investment component in the tariff, which will be directed to infrastructure modernization.

Experts of the UAC believe that the adoption of the draft law will introduce an effective model of management of state-owned reclamation infrastructure by involving water users in the management of the operator, reduce the cost of irrigation, and minimize the risks of stopping water supply during the growing season.

In addition, as a result of the implementation of its provisions, the state's expenses for the administration of the hydrotechnical melioration system will decrease and tax revenues from agricultural producers’ activities will increase.

The Ukrainian Agri Council thanks the Agrarian Committee for supporting the irrigation reform and calls on the People's Deputies to consider and adopt draft law No. 7577 on the operators of reclamation systems as soon as possible.

Friday, 10 March 2023

 

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