Ukraine has directed about $20 billion towards construction procurement over more than three years of full-scale war; however, the scale of reconstruction still significantly lags behind the level of destruction caused by Russian aggression.
This is reported by Business • Media
Investment volumes and key areas of recovery
According to analysts, in 2023-2024, the annual volume of construction procurement reached approximately ₴300 billion. It is forecasted that this amount will remain at the same level in 2025. The total includes expenses for both reconstruction projects and other infrastructure tenders.
Among the largest procurements are the repair and maintenance of roads in various regions, the creation of water supply systems for Kryvyi Rih, Marhanets, and Mykolaiv, as well as the restoration of educational and medical institutions. Significant attention is also being paid to strengthening the protection of energy infrastructure.
Lagging behind in reconstruction: causes and challenges
Despite significant financial efforts, the pace of recovery is substantially lagging behind the pace of destruction. One of the main reasons for this is insufficient funding. By the end of 2024, the losses from the destruction of housing and infrastructure in Ukraine had already reached $80 billion, while the total needs for reconstruction are estimated at $190 billion.
“Over more than three years of full-scale war, Ukraine has spent approximately $20 billion on construction procurement: 46% of medical institutions damaged by Russian aggression have been restored, and 28% of schools, with over $1 billion in compensation paid for destroyed housing.”
In addition to the lack of funds, the effectiveness of reconstruction is hindered by low competition during procurement procedures and existing bureaucracy. The leaders in terms of construction procurement volumes are Kyiv and Kyiv region, Vinnytsia, Dnipropetrovsk, Kharkiv, and Odesa regions.
To accelerate reconstruction, experts recommend improving procurement and control procedures, planning expenditures several years in advance, and considering the priorities of local communities.