Assessment of Public Investment Initiatives
An evaluation of 15 public investment projects across the Odesa and Kharkiv regions has revealed significant challenges related to planning, financing, budget adjustments, deadlines, and incomplete data within the state’s DREAM system. These findings were shared on October 27 in Odesa. The study is part of the “Recovery Window” initiative, supported by the European Union.
Key Findings and Monitored Projects
The assessment focused on 15 projects—10 in Odesa region and 5 in Kharkiv. These included hospital and maternity ward renovations, construction of the Kharkiv Regional Oncology Center, restoration of multi-story residential buildings, and housing development for displaced persons. Major obstacles identified were:
- lack of integrated planning;
- insufficient funding;
- frequent changes to budgets and timelines;
- incomplete information in the DREAM system;
- difficulties in project management.
Notable examples highlight these issues: the surgical pavilion of Odesa’s City Clinical Hospital No. 1 saw its repair budget nearly double from approximately 174 million UAH to 369 million UAH. Restoration work at the Valikhovsky building of Odesa’s City Clinical Infectious Diseases Hospital is ongoing amid legal disputes over contract termination with the contractor. Additionally, construction of a clinic with housing for a physician in the village of Taranivka, Kharkiv region, initiated in 2018, remains dependent on funding availability.
The DREAM system currently lacks comprehensive data necessary to fully track funding flows and project progress. Expanded results from this research are expected to be published on the Big Recovery Portal by the end of 2026. Alexandra Betliy emphasized,
“Public investments must target clear strategic community goals rather than isolated repair efforts.”Alexandra Petrova noted that
“communities face challenges due to rapid reform implementation, procedural inconsistencies, and years of underfunded infrastructure.”
Overall, the monitoring underscores the urgent need to enhance public investment management in Ukraine, particularly in healthcare and housing sectors, amid the numerous difficulties local communities confront. Given the extensive infrastructure damage caused by the ongoing war, there is heightened pressure to ensure state funds are used efficiently and recovery projects are executed effectively.
As the assessment highlights severe issues in public investment projects, it is important to note that the costs for the surgical pavilion at Odesa’s City Hospital No. 1 have surged due to inflation and additional repairs. This case exemplifies the broader financial challenges faced by ongoing public projects, emphasizing the need for improved planning and budget management.