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2 May 2022

Re-building Ukraine’s infrastructure 

The war in Ukraine has not only taken thousands of lives but destroyed a large part of Ukraine’s infrastructure.

According to Ukraine’s Minister of Infrastructure Olexander Kubrakov, around 30 per cent of infrastructure have already been either damaged or completely ruined.

Among the damaged or destroyed infrastructure are around 23,000 kilometers of roads, 300 bridges, several ports and civilian airports, including:

  • M-01 Kyiv-Chernihi – Novy Yarylovychi road, repairs of which were previously financed by EBRD as part of the Pan European Corridors Project / European Roads of Ukraine II;
  • the large bridge near the city of Voznesenk (Mykolaiv region) and various smaller bridges in Bucha, Irpyn and Stoyanka (Kyiv region);
  • Mykolaiv and Mariupol seaports; and
  • Dnipro, Mykolaiv and Vinnytsya airports.

While it is difficult to think about the recovery when there is no end to the warfare in sight, it is essential to start developing rebuilding plans to be ready for a quick start.

Soon after the war erupted, the Cabinet of Ministers of Ukraine (the “CMU”) adopted special legislation regulating procurement procedures during the war, including CMU Resolution “Some aspects of defense and public procurement of goods, works and service in conditions of martial law” No. 169 dated 28 February 2022, as amended (the “CMU Resolution No. 169”).

Under the CMU Resolution No. 169, during the martial law, public and municipal authorities are allowed to carry out procurement at their discretion, as long as they comply with the general principles of procurement under the Law of Ukraine “On Public Procurement” or, in case of defense-related procurement, some principles enshrined in the Law of Ukraine “On Defense Procurement”.

On 17 March 2022, EBRD, EIB, CEB, IMF and WBG made a Statement of Heads of International Financial Institutions with programmes in Ukraine and neighbouring countries. The financial institutions mentioned, among other things, their commitment towards restoring Ukrainian infrastructure.

On 21 April 2022, pursuant to Decree No. 266/2022, President Volodymyr Zelenskyy formed the National Council for the Recovery of Ukraine from the Consequences of the War (the “Council”). The Council will be an advisory body to the President performing the following tasks:

  • developing an action plan for the post-war reconstruction and development of Ukraine;
  • identifying and developing proposals for priority reforms, and
  • preparing strategic initiatives and draft regulations.

The Council will consist of various officials, including the Prime Minister, the Head of the President’s Office, Deputy Prime Ministers and Ministers, Deputy Heads of the President’s Office, Secretary of the National Security and Defense Council, Chairman of the National Bank of Ukraine and Chairmen of the Parliament’s Committees.

The Council is allowed to create specialised working groups and committees, including regarding infrastructure recovery, which may include national and international experts, serving in an advisory role to the Council.

Sayenko Kharenko’s team will continue monitoring initiatives of the Ukrainian government, its international partners and private businesses in re-building Ukraine’s infrastructure.

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