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❓How to prepare for cooperation with international companies on donor-funded projects

On January 29, 2025, a special seminar was held on the preparation for cooperation with international companies on donor-funded projects.

The seminar began with a welcoming speech by Oleksandr Chervak, CEO of the CBU, who introduced the speaker and provided more details about the topic of the seminar.

👤The speaker of the event was Oleg Tymkiv, an expert in strategic development and finance, who shared the key information that potential international donors arriving in Ukraine are aware of. Specifically, it is known that Ukraine is the largest country in Europe by territory and one of the largest countries by population.

As of 2024, according to the World Bank, the total amount of losses caused by the russian federation in Ukraine is estimated at 486 billion dollars. In particular, the reconstruction of infrastructure requires over 157 billion dollars.

Unfortunately, Ukraine will not be able to restore all the destroyed objects on its own, so international support, both financial and in the area of expertise, is necessary.

🤝Mr. Tymkiv mentioned that international donors provide financial assistance, technical expertise, and support for the implementation of critical infrastructure projects, humanitarian aid, and economic recovery programs.

These organizations often have specific priorities and development goals that determine their decisions regarding funding. Understanding these priorities and aligning the company's proposals with the donors' interests is key to ensuring opportunities for participation in projects.

☝️The expert emphasized that it is important to carefully study and follow all relevant rules and requirements of the donors to ensure the successful implementation of the project and maintain positive relationships with the donor organization.

Donor organizations have specific rules and procedures that must be followed. These cover aspects such as compliance with criteria, procurement, financial management, reporting, monitoring, and others.

Failure to comply with the donor’s rules can lead to delays in funding, project suspension, or even contract termination.

📝Oleg Tymkiv shared his personal experience working with international donors and general contractors, suggesting that the most interesting projects for them will be those related to the restoration of transport, energy, critical, residential, and social infrastructure, as well as railway and road connections with the EU.

He outlined the types of international general contractors:

🔹large multinational corporations;  

🔹specialized engineering/design companies;  

🔹non-profit organizations;  

🔹consortia.

The expert identified the main expectations and requirements of international contractors:

🔸high-quality standards;  

🔸compliance with safety and environmental regulations;  

🔸expertise in project management;  

🔸financial stability and reliability;  

🔸transparency and accountability;  

🔸implementation of technologies;  

🔸subcontractor management;  

🔸cultural sensitivity.

❗Mr. Tymkiv emphasized that registration in SAM is a mandatory requirement for contracts with the U.S. government.

📍SAM (System for Award Management) is the primary registry of the U.S. government for information on contractors and grant recipients. Registration in SAM is required for any company planning to work with the U.S. government, including subcontractors on USAID-funded projects.

📃He also added that some other countries have similar requirements to SAM, and it is advisable to familiarize oneself with them in advance.

🌐Oleg Tymkiv compared the construction/reconstruction process from the perspectives of a Ukrainian and a foreign contractor.

The key criteria for evaluation in the tender process or selection are:

🔹the company's strong reputation;  

🔹successful project implementation experience;  

🔹a stable history of profitable operations;  

🔹transparent business practices;  

🔹regular and accurate preparation and submission of financial reports;  

🔹conducting audits;  

🔹compliance with international financial reporting standards, XBRL reporting, and tax reporting in SAF-T format.

The main success factors, according to Mr. Tymkiv, include understanding the contract conditions, effective communication with international general contractors, the absence of language barriers, financial risk management, the use of licensed software, proper documentation management, alignment of reporting requirements, stakeholder management, and having a clear project plan.

At the end of the event, participants had the opportunity to engage in a discussion and receive answers to relevant questions from the expert.

WE WILL WIN AND REBUILD EVERYTHING! 💪

TOGETHER TO VICTORY! 

GLORY TO UKRAINE! 💙💛