For the past two years, the project’s experts have conducted monthly monitoring of reconstruction spending and procurement activities within the sector.
Key updates from the past month
The government has launched a new public investment management system aimed at streamlining Ukraine’s recovery efforts. This involves creating a unified project portfolio accessible through the DREAM platform, all designed to ensure the reconstruction process is transparent, efficient, and well-controlled.
Funding falls short
While Ukraine’s recovery needs are estimated to be over $83.7 billion, current funding only covers about 5% of that amount. Although support programs, like preferential loans for internally displaced persons (IDPs), are in place, their scale just isn’t enough.
Reconstruction lags behind destruction
With more than 350,000 buildings destroyed or damaged, only around 100,000 have been restored so far. The primary focus remains on rebuilding homes, schools, and healthcare facilities.
Public procurement issues
A significant concern is that over 80% of public procurements are happening without competition, often with only one bidder. This raises the risk of funds being used inefficiently and prices being inflated.
Business need more support
Ukrainian businesses have suffered direct losses estimated at $17.5 billion, with small businesses in frontline regions hit especially hard. They urgently need things like preferential treatment, war risk insurance, and better access to financing.
Demining efforts progressing
There’s good news on the demining front: competition has driven down the cost of clearing one hectare by an impressive 25 times. Plus, Ukraine has introduced its first remote demining machine, the HART 5100, to help clear hazardous areas.
The release was prepared within the framework of the EU-funded project “The recovery spending watchdog”. Previous releases are available here. The project is a joint effort of the Centre for Economic Strategy, the Institute for Economic Research and Policy Consulting, and the NGO “Technologies of Progress”. All project participants are members of the RISE coalition.
The presentation in English will be available soon.
