Restoration, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local governments (Projects within the framework of the Ukraine Facility (Pillar 1)
Municipal infrastructure and services
Development and rehabilitation of municipal infrastructure of subnational governments
State level of SPP
58
General Information
Program Description
Program "Restoration, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local self-government bodies" (Projects within the framework of the Ukraine Facility (Pillar 1)) was launched to implement the Plan of Ukraine, approved by the Order of the Cabinet of Ministers of Ukraine dated March 18, 2024 No. 244-r, in accordance with the implementation of the European Union initiative “Ukraine Facility”, introduced by Regulation (EU) of the European Parliament and of the Council (EU) dated February 29, 2024 No. 2024/792. According to the report prepared by the Government of Ukraine, the World Bank, the EU, the UN in cooperation with partners (RDNA4), the needs for the reconstruction of Ukraine reached $ 524 billion, including education - $ 9.6 billion, healthcare - $ 19.6 billion, social protection - $ 9.5 billion, culture and tourism - $ 29.3 billion. The urgency of the issue of reconstruction, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local self-government bodies, is the need to ensure the continuous and effective operation of the state management system in the face of modern challenges, in particular the consequences of war, man-made destruction and security threats. The restoration of critical infrastructure allows not only to restore the functioning of authorities, but also to strengthen their resilience, digital capabilities and ability to respond to emergencies, which is key to the stability and development of the state. The destruction of schools, hospitals, kindergartens, social service institutions, critical infrastructure (water supply, sewage, heat, gas supply, etc.) and other important facilities significantly complicates the population's access to basic services, which leads to a deterioration of the socio-economic situation, increased social tension and migration. This problem is especially acute in regions that have suffered significant losses as a result of hostilities or natural disasters. Infrastructure restoration — is not only the physical reconstruction of buildings, but and strategic investment in the future. This process helps restore citizens' trust in the state, stimulates economic activity, creates jobs, promotes social cohesion and the return of internally displaced persons. It is assumed that the IIPs that will be implemented within the framework of the program will introduce modern standards of energy efficiency, inclusiveness and accessibility that will meet the needs of all segments of the population.
Strategic Case
Program Goal
Strategic Relevance of the Program
Program Objectives
Number of communities in which facilities have been restored
0 units
880 units
Programme Sustainable Development Goals
Economic Case
Economic feasibility of the program
What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?
Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?
Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?
Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?
Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?
Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?
Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?
What social consequences are relevant for your program, after its implementation?
Why is it advisable to implement projects in the format of one comprehensive program, and not separately?
How will the program help strengthen other economic processes or reforms?
Program Components
Component ID
DREAM-1
Restoration, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local self-government bodies
Justification
The implementation of the component involves the restoration of damaged/destroyed facilities, including educational, healthcare, social protection and other administrative buildings, water supply, sewage, heat supply, culture, sports facilities, etc. According to the report prepared by the Government of Ukraine, the World Bank, the EU, the UN in cooperation with partners (RDNA4), Ukraine's reconstruction needs reached $524 billion, including education - $9.6 billion, healthcare - $19.6 billion, social protection - $9.5 billion, culture and tourism - $29.3 billion.
Year
Amount
1
31'224'400'000 UAH
2
20'000'000'000 UAH
Financial justification
Total estimated program cost
51'224'400'000 UAH
Estimated cost of program components
51'224'400'000 UAH
Component
Amount
Restoration, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local self-government bodies
51'224'400'000 UAH
Cost justification
Short description
Justification document
Sources and mechanisms of financial support for the implementation of programs.
Status
Funding mechanisms
Coverage, %
Investment
Non-repayable financing. Direct budget financing. Direct expenditures from the state budget (public procurement).
100%
Justification document
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)
The source of financing is the receipts to the general fund of the state budget within the framework of the Plan of Ukraine, approved by the order of the Cabinet of Ministers of Ukraine dated March 18, 2024 No. 244-r, in accordance with the implementation of the European Union initiative “Ukraine Facility”, introduced by Regulation (EU) of the European Parliament and of the Council (EU) dated February 29, 2024 No. 2024/792. The Plan of Ukraine provides that at least 20% (1.054 billion euros) of the non-repayable financial support within the framework of Component I of the Ukraine Facility was directed to the needs of the restoration, reconstruction and modernization of subnational authorities of Ukraine, in particular local governments. 1.054 billion euros within the framework of the “Ukraine Facility” calculated in hryvnia equivalent at the exchange rate of 48.6.
Management Case
Total program duration (months): 2
Approaches to project selection
Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?
Organizational Measures
5. Program implementation (construction works)
17 months
4. Preparation for implementation (conducting tender procedures, obtaining permits, etc.)
2 months
1. Development of regulatory legal acts on prioritization of public investment projects that can be implemented at the expense of funds provided in the state budget for the Restoration, reconstruction and modernization of facilities of subnational authorities of Ukraine, in particular local self-government bodies, and the procedure for using such funds
2 months
6. Conducting audits and assessments
1 months
2. Selection of projects for the program
1 months
3. Development of a draft regulatory legal act on approval of the distribution of funds between local budgets/projects and activities (based on the results of project selection)
1 months
Risk Assessment
Risk
Probability
Degree
Strategy
Risk
Specific and discriminatory changes in legislation (tax, customs, etc.)
Probability
Low
Degree
Considerable
Strategy
Acceptance
Risk
Changing requirements for services/projects during the implementation of subprojects
Probability
Low
Degree
Minor
Strategy
Acceptance
Risk
Delay in receiving permit documents
Probability
Low
Degree
Considerable
Strategy
Avoidance
Risk
Exchange rate fluctuations
Probability
Medium
Degree
Considerable
Strategy
Acceptance
Risk
Lack of co-financing of local budgets
Probability
Medium
Degree
Critical
Strategy
Avoidance