The Center for Economic Strategy has prepared the fifth analytical report as part of the new project “Public Investment Control”. This is a monthly monitoring of the public investment system and analysis of procurement in construction and reconstruction, which the Center has been conducting since 2023.
Highlights from the June report:
In June, the government took several important steps to streamline the full cycle of public investments: it approved the concept of a digital ecosystem, a methodological package for project evaluation and SPI for 2027–2029. The new architecture should connect planning, selection, budgeting, implementation, monitoring and evaluation of project results based on coordinated data between DREAM, AIS “GRK-VEB”, LOGICA, the Treasury, the procurement system and other state resources.
The SPI for 2027–2029 forms a three-year resource framework of UAH 270.9 billion, but this is not a guarantee of financing all declared projects. Only projects included in the EPP and related to the defined priorities should receive state funding. The largest areas of the SPI are education and science, transport, municipal infrastructure, healthcare, and energy.
At the community level, activity in DREAM decreased in June: 376 new PIPs were registered compared to 545 in May. Most of the new projects concern education and municipal infrastructure and services. Despite the significant number of projects in DREAM, the funding received remains low. In June, new PIPs had an estimated cost of UAH 20.1 billion, expected funding of UAH 6.0 billion, but received only UAH 0.2 billion.
In May 2026, the amount of construction procurement grew rapidly (by 2.5 times y/y), which was accompanied by an increase in capital budget expenditures (by 28% y/y), in particular due to the EU's decision to allocate the Ukraine Support Loan to Ukraine. The gradual establishment of procedures within the framework of the public investment management reform also played a role, which makes it possible to make up for delays at the beginning of the year, as well as the increase in prices in construction (in January-April 2026 by 12.4% y/y). The main procurements in May were construction work in schools and hospitals, as well as road repairs. Kyiv, Dnipropetrovsk and Kharkiv regions are among the leaders in the number of construction procurements. The smallest number of construction procurements is in Kherson and Donetsk regions.
Both in Ukraine and in the EU, infrastructure projects are prepared according to the rules of the Public Investment Procedure, but the details of the preparation vary greatly.
The Center for Economic Strategy compared two capital infrastructure projects of similar scale to understand how different systems check readiness for financing. The main conclusion: in Ukraine, it is worth assessing not only the availability of documents, but also whether they confirm the financial and technological viability of the project.
Reference
The Public Investment Monitoring project is designed to offer systemic solutions to overcome the challenges of public investment reform. The project team will strengthen analytical monitoring of investment projects, develop practical tools to increase transparency, strengthen the capacity of local governments, and support public control at the local level.
The materials were developed within the framework of the Public Investment Monitoring project, funded by the European Union. The project is a joint work of the Center for Economic Strategy, IER, and the NGO "Technologies of Progress". All project participants are members of the RISE UKRAINE coalition.
Source of information: propertytimes.com.ua
Author: Natalia Khomka
