Ukrainian NGO “Anti-Corruption Headquarters” reveals seven challenges of reconstruction and how to overcome them

Addressing the reconstruction challenges in Ukraine requires collaborative efforts from the government, local authorities, the civil sector, and donor organizations.

This conclusion was made by participants of the "Roadmap for Country Recovery: 7 Reconstruction Challenges and How to Overcome Them" press conference, Rubryka reports.

What's the problem?

Using the examples of three regions — Zhytomyr, Zaporizhzhia, and Kharkiv — the civil organization "Anti-Corruption Headquarters," supported by the International Renaissance Foundation, highlighted seven major reconstruction challenges in Ukraine.

Before this, the organization discussed the issue with civic groups, regional administrations, local self-government bodies, and other residents.

The identified challenges include:

• Lack of standardized and systematized information on investment attraction.
• Shortage of qualified specialists in the reconstruction field.
• Transparency, accountability, standardization, and digitization of the reconstruction process.
• Prioritization of reconstruction efforts.
• Inflated prices and abuse during tenders for recovery projects.
• Demolition of damaged buildings on valuable land with dubious legal grounds.
• Significant reduction in reconstruction funding for 2024.

Oleksii Orlovskyi, the Director of the Democratic Practice Program at the International Renaissance Foundation, stressed how important transparency, accountability, and public participation in the reconstruction are for donor organizations. He also highlighted the need to involve internally displaced persons in developing new communities and decision-making.

Oleksii Orlovskyi also outlined two essential factors for international donors:

1. Reconstruction aligned with the Eurointegration, adhering to relevant norms and rules.
2. Not undermining the achievements of decentralization reforms, also supported by international donors.

What's the solution?

The "Anti-Corruption Headquaters" presented their proposed solutions for each challenge. Serhii Mytkalyk, the NGO's Chair of the Board, emphasized that the government has already taken steps to address specific issues and invited representatives of relevant authorities to share their perspectives.

How does it work? 

To tackle the issue of transparency and digitization, both the "Anti-Corruption Headquarters" and the Deputy Minister of Development of Communities, Territories, and Infrastructure of Ukraine, Oleksandra Azarkhina, propose using the DREAM system. Its analytical module was launched recently, although in a testing phase.

Oleksandra Azarkhina explained that ensuring stakeholders upload comprehensive information about reconstruction projects to DREAM remains challenging. Relevant legislative initiatives are being prepared to address this issue.

"Everything we are currently discussing about the priorities of reconstruction should revolve around projects that drive economic development. Ensuring people's access to basic services is, of course, a top priority, followed by projects that support our economy as a whole. It is a challenge for us that the Ukrainian budget cannot provide sufficient funding for prospective reconstruction. We rely heavily on our international partners in this regard," said Oleksandra Azarkhina.

For partners, having accurate data concentrated in DREAM, and the registry of damaged and destroyed property is crucial.

Valeria Ivanova, Deputy Head of the State Agency for Reconstruction and Development of Infrastructure of Ukraine, confirmed that a shortage of qualified specialists in the reconstruction field was a huge challenge. The agency encountered difficulties finding experts to thoroughly review project-cost estimates for reconstruction projects. The solution involved collaborating with partners who could provide such expertise.

The second challenge is ensuring fair auctions for reconstruction projects. Unified qualification criteria for all auction participants are necessary to minimize corruption risks and level the playing field. The agency is currently developing relevant recommendations in collaboration with experts from the Antimonopoly Committee of Ukraine.

Valeria Ivanova also mentioned the reluctance of businesses to participate in state tenders for reconstruction. Entrepreneurs are hesitant due to the state's inability to guarantee project financing and cover construction-related risks. The outdated tariff-setting system in the state also remains a challenge. To better understand business concerns, representatives of the Reconstruction Agency will conduct additional market consultations with entrepreneurs in four cities across Ukraine in November.

Deputy Mayor of Zhytomyr, Serhii Kondratiuk, highlighted that in Zhytomyr, all decisions regarding reconstruction are made with the involvement of civic organizations, and all meetings take place online, allowing everyone to monitor the processes. He encouraged the public to join discussions on specific projects at the initial stages, providing an opportunity to find more constructive solutions.

As of September 1, 2023, the total amount of infrastructure damage inflicted on Ukraine by the Russian invasion was $151.2 billion, according to data from the Kyiv School of Economics. More than 670,000 tons of debris have been generated since the start of the full-scale Russian invasion of Ukraine.

It was also reported that a business conference dedicated to Ukraine's reconstruction would take place in Toronto, Canada, on November 21-22.