Russia’s military aggression has caused large-scale damage to Ukraine’s infrastructure, estimated at USD 157.2 billion as of early 2024. However, only 7,713 projects worth a total of UAH 388.34 billion have been submitted through the DREAM system, indicating low community engagement. One reason for this low activity may be the non-transparent project prioritisation process.
Currently, project prioritisation remains manual and subject to subjective decisions by ministry representatives. Despite the approval of Resolution No. 903 in August 2024, which provides for the automation of project evaluation based on criteria with weighting coefficients, the actual evaluation process remains in the hands of the human factor. This creates serious risks of corruption and unfair distribution of funding.
The methodology on which the Resolution is based was developed on the basis of two methodologies – the World Bank’s and Transparency International Ukraine’s – and was intended to ensure a fair distribution of funds based on clear criteria. In their pure form, the methodologies could discriminate against certain projects, so the government adopted a mixed methodology based on a system of criteria, indicators, and weighting factors for qualitative project ranking. However, the approved methodology limits the automation of the process.
The Nova Energia team has prepared a policy brief that contains recommendations on the necessary steps to ensure the automation of the prioritisation process. This will increase transparency, reduce the risk of corruption, and promote a more equitable distribution of funding.
You can read more about the problem and recommendations in the short policy brief here:
This material was prepared with the support of the International Renaissance Foundation within the framework of the project ‘Support for mechanisms of participatory reconstruction of Krasnopilska community in Sumy region’. The material reflects the position of the authors and does not necessarily coincide with the position of the International Renaissance Foundation.
Source: NGO ‘New Energy’