100 million euros for the reconstruction of critical infrastructure

100 million euros for the reconstruction of critical infrastructure: The Ministry of Development is launching the third stage of the Reconstruction Program with the support of the European Investment Bank.

The Ministry of Community and Territorial Development of Ukraine is starting a new stage of the "Ukraine Reconstruction Program," implemented with the support of the European Investment Bank. 100 million euros have been allocated for this stage, which will be directed toward the reconstruction of critical infrastructure objects and the development of communities.

The launch of the program was announced by the Deputy Minister of Community and Territorial Development, Oleksiy Ryabykin, during a briefing.

"For the first time in Ukraine's history, a program is starting in which projects will be implemented in accordance with community strategies, regional development strategies, and the state strategy for regional development. This program is a new level of planning and development, where resources are directed toward the implementation of community and regional development strategies. We form a vision, plan, and then obtain resources to bring the projects that embody this vision to life," – emphasized Deputy Minister of Community and Territorial Development Oleksiy Ryabykin.

The briefing was also attended by the head of the DREAM Project Office – Viktor Nestulya, the State Digital Ecosystem for Reconstruction Management, and co-founder of the "Technologies of Progress" NGO, Max Nefyodov.

Projects will be implemented using the innovative DREAM platform, which allows for the automation of project selection and monitoring processes. The platform will ensure transparency and efficiency in financial management and allow for rapid assessment of project progress, control of fund usage, and ensuring targeted allocation.

"The DREAM platform is an electronic solution that fully covers the entire cycle of public investment management, from project initiation and preparation of project and estimate documentation to the allocation of funding and its implementation. The Ministry has decided to conduct the selection of such projects through the ecosystem. This means that all requirements will be structured in a single format that is clear to everyone. Today, 1,260 communities and 23 regional administrations are already working in DREAM. They automatically receive information about new funding sources and understand which projects they can submit for this funding. Most importantly, an application can be formed in a few clicks and submitted for consideration to the regional administration and the Ministry," – noted the head of the DREAM Project Office, Viktor Nestulya.

As part of the implementation of the Program, a integrity group will be formed, consisting of specialists with appropriate reputations and experience. Its main task will be to assess projects for compliance with cost, implementation timelines, and other reputational risks.

"We want to become a systemic assistant to the Ministry and other government bodies, helping to systematize the problems and challenges that arise in the reconstruction process. This process does not always require only punishing the guilty or reworking projects; sometimes it is necessary to change approaches to formulating technical tasks or to architectural expertise," – noted Max Nefyodov.

Project selection will be carried out in the following areas:

• Energy resilience of communities. Special attention is paid to the diversification of heat supply and the development of distributed generation to ensure energy efficiency.
• Housing construction. Within the framework of the program, a housing fund in communal ownership will be created to accommodate internally displaced persons, community employees, and other categories of citizens in need of housing.
• Modernization of water supply and sewage infrastructure. Given the technical obsolescence of networks, projects for their renewal will be implemented in communities.
• Reconstruction of medical facilities. Special attention will be given to cluster hospitals and perinatal centers.

Conditions for participation in the selection:

• The object must be entirely in communal ownership.
• Mandatory co-financing from local budgets, amounting to at least 23%.
• Availability of up-to-date project and estimate documentation (with exceptions for certain types of projects).
• Project implementation period — 18 months; for projects concerning distributed generation objects — by October 1, 2025.
• The community is obliged to ensure the further maintenance of the object for at least 20 years from the date of project implementation completion.

Applications can be submitted by local self-government bodies, executive bodies of rural, settlement, and city councils. Project implementation is not planned in temporarily occupied territories or in zones of active hostilities.

Priority will be given to projects with ready-made project documentation developed in accordance with current standards and norms, as well as those that meet the interests of the community, particularly the needs of vulnerable population groups.

Approximately 100 projects are planned to be implemented during this stage. The program involves the active participation of communities, which will be able to submit their proposals on a competitive basis.

Reference

The Ukraine Reconstruction Program is part of the public investment reform aimed at restoring critical infrastructure and improving the quality of life in communities affected by the war.

In June 2024, a Financial Agreement was signed between Ukraine and the EIB, providing for the involvement of 100 million euros. These funds will be directed toward the reconstruction of social infrastructure, housing and communal facilities, and ensuring municipal housing in regions affected by the Russian military aggression, as well as in those regions that have accepted a significant number of internally displaced persons. The subvention will be provided to communities through the state budget to local budgets.

As part of the previous two stages of the program, 225 projects have already been implemented for an amount exceeding 500 million euros. According to Oleksiy Ryabykin, several important objects that received earlier funding are expected to be commissioned this year.