Ukraine needs not just reconstruction and recovery but a new concept of development and modernization. To ensure the effectiveness of this process, in 2023, the Government of Ukraine launched a Public Investment Management (PIM) reform. This will allow to direct limited financial resources to key projects that meet the recovery priorities and consider the actual needs of Ukrainians.
Public investment management (PIM) reform involves the introduction of new tools for planning, preparing, monitoring and evaluating public investment projects.
To ensure effective strategic planning, the Government has established the Strategic Investment Council as a temporary advisory body of the Cabinet of Ministers of Ukraine. This council plays a key role in setting strategic priorities for public investment, both using the state’s own resources and funds from international partners.
The World Bank is currently supporting the Public Investment Management (PIM) process in Ukraine through separate projects. Technical assistance to improve the Ukrainian Government’s capacity to plan and finance public investment projects for reconstruction and recovery will be provided through the Strengthening Government Capacity for Fiscal Reform Implementation (STRONG) project. The Public Investment Management (PIM) reform and the implementation of the PIM Roadmap are being supported through another World Bank-financed programme – Supporting Reconstruction through Smart Fiscal Governance (SURGE).
Despite the significant efforts of the Ukrainian government and international donors, including the World Bank, challenges remain in advancing reconstruction and recovery due to limited institutional capacity and limited funding for the preparation of public investment projects.
To address this issue, the Government is working with international financial institutions (EIB, EBRD and the World Bank Group) to establish the Framework for Project Preparation for Ukraine (FPPU). This framework will coordinate project preparation through the Project Preparation Facility (PPF), enabling the Government to prepare priority recovery and reconstruction projects in line with quality, fiduciary, and environmental and social standards. The FPPU will facilitate the efficient use of public and donor resources in the short term while paving the way for Public-Private Partnerships (PPPs) and private financing in the medium term.
The Ukraine Project Preparation Facility is being designed and developed with the technical support of the World Bank in cooperation with the Government of Ukraine, based on the PPP Agency, which is state-owned and managed by the Ministry of Economy.
The Ministry of Economy recognises the importance of effective communication and stakeholder engagement for successfully implementing reconstruction and recovery projects. To this end, together with World Bank consultants, a draft Stakeholder Engagement Plan (SEP) has been prepared, which can be found in detail here:
The overall objective of this Stakeholder Engagement Plan (SEP) is to define a programme for stakeholder engagement, including public information disclosure and consultation throughout the entire project cycle.