Digital Tool for Managing Reconstruction of Infrastructure and Real Estate Projects (UA0101)

Reconstruction of destroyed facilities is a huge challenge for the entire country. Tens of thousands of reconstruction projects implemented by many institutions and organizations require high-quality planning, preparation, attraction, and coordination of funding from various sources, as well as high-quality and effective implementation. Moreover, these projects should meet the needs and priorities of citizens. To effectively address this issue, the Cabinet of Ministers of Ukraine issued Resolution No. 1286 "On Implementing a Pilot Project to Create, Implement, and Operate a Unified Digital Integrated Information and Analytical System for Managing the Reconstruction of Real Estate, Construction, and Infrastructure Projects,” dated November 15, 2022 (Ofitsiinyi Visnyk Ukrainy [The Official Bulletin of Ukraine], 2022, No. 92, art. 5738; 2023, No. 48, art. 2654). The unified digital system has been piloted for all pilot project participants. In addition, the Ministry of Infrastructure, together with the Agency for Reconstruction, in cooperation with the Open Contracting Partnership initiative, established a Project Office for the development and implementation of the Unified Digital Integrated Information and Analytical System for Managing the Reconstruction of Real Estate, Construction, and Infrastructure Projects, conducted training for pilot project participants, and organized a technical support service based on messengers, e-mail, and a multi-channel telephone number. The Unified Digital System is designed to integrate the entire planning and implementation cycle of major projects, particularly the identification, preparation, assessment, funding allocation, implementation, and commissioning. At each stage, the system is expected to cover processes such as the project description, justification, planning, budgeting, evaluation, financing, procurement, contracting, project implementation, payment for work, and project completion. Adherence to the principles of openness and data accessibility at all stages will enable citizens to participate in prioritizing and monitoring the implementation of reconstruction projects. It will increase the trust of all stakeholders in the reconstruction. Implementing the Unified Digital System will promote transparency, accountability, and inclusiveness in reconstructing infrastructure, construction, and real estate projects.

Steps | Responsible agency | Completion time/period | Delivery indication

1. Development of the Regulation of the Unified Digital System and the Instructions for Its Use | Ministry of Infrastructure Agency for Reconstruction | November 2023 | Use of the system have been developed and approved

2. Launch of the Unified Digital System into trial operation | Ministry of Infrastructure Agency for Reconstruction | November 2023 — August 2024 | The Unified Digital System has been put into trial operation

3. Training of various user groups in using the Unified Digital System | Ministry of Infrastructure Agency for Reconstruction | November 2023 — December 2024 | Various groups of users (representatives of state authorities, local selfgovernment bodies, civil society institutions, etc.)

Action Plan Review

• Verifiable: Yes
• Does it have an open government lens? Yes
• Potential for results: Substantial

Commitment 1։ Digital tool for infrastructure and real estate reconstruction
Ministry for Communities, Territories, and Infrastructure Development; Agency for Reconstruction.

For a complete description of the commitment, see Commitment 1 in Ukraine’s 2023–2025 action plan: https://www.opengovpartnership.org/documents/ukraine-action-plan-2023-2025.

Context and objectives

Considerable international support has been directed towards Ukraine’s reconstruction and recovery from Russia’s full-scale military invasion, underscoring the importance of transparency in the implementation of recovery projects. In 2022, a coalition of 50 local and international organizations aimed at advancing Ukraine’s Reconstruction Integrity, Sustainability (RISE) proposed creating a system for managing reconstruction projects. On 26 August 2022, the Ministry of Infrastructure (later transformed into the Ministry for Communities, Territories, and Infrastructure Development of Ukraine) signed a memorandum of cooperation with RISE Ukraine on introducing an electronic reconstruction management ecosystem. [1] In November 2022, the Cabinet of Ministers adopted Resolution No. 1286, which sets the pilot of the unified system. [2] This platform was named the Digital Restoration Ecosystem for Accountable Management (DREAM). [3] In 2023, the ministry, along with the Agency for Reconstruction and the Open Contracting Partnership (OCP), established the DREAM project office that is responsible for the system development and implementation, including capacity building for communities on how to use the system. ^[4] The system was developed in the framework of an OCP project with the support of the British government and later the German government through the German Development Cooperation(GIZ) as well as USAID’s and UK Dev Digital’s Ukraine Digital Transformation Activity implemented by Eurasia Foundation. As with Prozorro and Prozorro.Sale, the management of DREAM’s electronic system is being gradually transferred to the government upon its development. [5]

DREAM will integrate the entire cycle of projects, such as the description, justification, planning, budgeting, evaluation, financing, procurement, contracting, implementation, payment for work, and completion. Implementing bodies (local communities, regional and national authorities) can add their projects and upload relevant information and documents. Registered donor organizations can also use the platform to launch open calls for applications, communicate with projects initiators, and monitor implementation while other organizations can register as independent reviewers. [6] All data is collected and published in accordance with the Open Contracting Data Standard (OCDS). [7] DREAM is linked with other government registers and systems such as the Registry for Damaged and Destroyed Property, e-Construction, United State Register, Prozorro, spending.gov.ua, ProIFI, OpenBudget, Legal Entities Register, and will later be linked with the geo-information system (GIS), Diia, and other systems to transfer information through a unified channel and automatically retrieve information at the implementation stage. [8] While the system is primarily designed for reconstruction, the Head of DREAM Project Office indicates it will also cover other public projects that have attracted investment. [9] The milestones of this commitment include developing by-law regulations which will clarify the functions and components of the platform and responsibilities of the respective bodies as well as testing the platform and training users on how to use it.

Potential for results:Substantial

Stakeholders highlight this commitment as one of the most important of the action plan. Citizens can identify their region or community on the platform and track the implementation, expenditures, and reports of local projects. DREAM will also offer a single window for information on specific projects from other registries and implementing entities in a user-friendly manner, providing an analytics module, easy searching and filtering, and information on risks. Besides providing information on projects, the new module under development will allow citizens to submit project ideas, leave feedback, participate in e-polls, and vote for projects. [10]

As of the end of 2023, the World Bank and the Government of Ukraine estimated that Ukraine’s reconstruction would require as much as USD 486 billion. [11] A 2023 opinion poll revealed that 79% of Ukrainians are concerned about a lack of control over reconstruction resulting in embezzlement or the use of poor-quality materials, and 75% concerned about the resumption of money laundering on large-scale projects. Over 70 percent of respondents considered it essential to control the implementation of works, costs, and information about contractors and responsible persons to prevent corruption. [12] DREAM could address these concerns by enabling closer monitoring of detailed information on the implementation of reconstruction projects.

As the government plans to mandate DREAM for all reconstruction projects, the IRM assesses the commitment as having substantial potential for results. [13] The legal regulations for mandatory use of the platform are expected to be adopted by the parliament in 2024. [14] As of June 2024, over 1050 local governments (up from 315 in March 2024) have already registered and presented their projects. [15]

Opportunities, challenges, and recommendations during implementation

As DREAM primarily targets regions and communities, it will be important to ensure local governments have the necessary capacity to utilize the platform for reconstruction. It will also be important to maintain the interest and input of civil society and citizens in monitoring and participation. Training users and supporting the project office could mitigate these risks. Another challenge will be sustaining the platform and project office beyond donor support. This commitment addresses this risk by legally requiring the project implementers to use the platform. Additionally, the government has amended the “Fund for Liquidation of the Consequences of Military Aggression” to fund projects via DREAM. [16] The EU’s Ukraine Facility also provides EUR50 billion for reconstruction in regions. [17] Allocating these funds through DREAM will allow for greater monitoring and participation.

To fully realize the potential of DREAM, the IRM recommends the following:

• Strengthen the participatory module of the platform by incorporating provisions in the by-law regulations on DREAM to ensure that project implementers consider public input and provide feedback to the input as relevant, similar to Dozorro and Italy’s OpenCoesione. [18]
• Specify the timelines and roadmap for mandating the use of the platform for publishing information on all reconstruction and investment projects (including those funded by the Liquidation Fund and the EU’s Ukraine Facility).
• Organize ongoing capacity building of regional and local governments, specifically for project design, management, and application of OCDS. The government can cooperate with CSOs on an institutional basis to benefit from their existing support work. For example, the Initiative Center to Support Social Action - Ednannia has shared professional standards for reconstruction experts and supported relevant capacity building activities. [19]