Executive Summary
In 2024, the pace of recovery increased significantly: the number of projects rose to 987 (up from 481 in 2023), and total expenditures grew to UAH 1.28 billion (from UAH 0.4 billion in 2023). This indicates a shift from crisis response to systematic management of recovery processes at the local level.
The structure of expenditures shifted from educational facilities toward housing and infrastructure, reflecting the urgent need of communities for basic infrastructure. At the same time, funding is concentrated in key regions—Kyiv (45% of funds) and Donetsk region (12%)—while other regions show more localized activity and require a differentiated approach to resource allocation.
Housing accounts for 75% of all recovery projects, with 50% of the analyzed funds spent on their implementation. At the same time, the average cost of restoring a housing unit is lower than for other types of projects, highlighting the prevalence of numerous small, low-cost repairs. In contrast, educational institutions, healthcare facilities, and critical infrastructure are characterized by higher average project costs, requiring specialized resources and planning.
For the majority of projects, between one and three payment orders were issued. Only a small share of projects had more than 10 payments, indicating the complexity of large-scale projects and potential bureaucratic risks. The return of funds (less than 1% of the total volume) is concentrated in large projects and helps identify weaknesses in control and planning.
A significant share of funds is concentrated among the top 10 contracting authorities (59%) and contractors (37%), while peak spending occurs in December (41% of the annual total), highlighting the need to revise approaches to budget planning throughout the year.
At the same time, the data verification system based on program classification codes TPKVK MB 7372–7377 reveals structural limitations: data is fragmented, incomplete, and inconsistent; sources contain numerous errors and technical discrepancies; and some payments are made outside the treasury system. This complicates oversight, requires manual processing, and underscores the importance of institutional improvements—standardizing payment documents, unifying procurement data, and increasing transparency of processes.
This study is the result of a detailed analysis of collected information and serves as an equivalent of a financial audit conducted by an independent analytical center. Its findings can be used by local governments, state authorities, and donor organizations to improve the efficiency of managing the recovery of Ukraine’s damaged infrastructure.
