Monitoring of Infrastructure Projects (UA0041)

Preparing and submitting to the Cabinet of Ministers of Ukraine in due course a draft Model Regulation on a Monitoring Committee of Infrastructure Projects, which would envisage the procedures for establishment of supervisory boards for the implementation of infrastructure projects of national and regional levels

9. Monitor infrastructure projects

Commitment Text: 9. Preparing and submitting to the Cabinet of Ministers of Ukraine in due course a draft Model Regulation on a Monitoring Committee of Infrastructure Projects, which would envisage the procedures for establishment of supervisory boards for the implementation of infrastructure projects of national and regional levels.

Expected result: relevant resolution adopted by the Cabinet of Ministers of Ukraine.

Lead institution(s): Ministry of Infrastructure

Supporting institution(s): Ministry of Economic Development, Ministry of Finance, Ministry of Ecology and Natural Resources, NGO Transparency International Ukraine, other unspecified NGOs and international organisations

Start Date: Not specified                                             End Date: 31 December 2014

Commitment aim

This commitment aimed to enhance transparency, civic oversight, and public accountability in national and regional infrastructure projects. Such projects often use significant public funds, and lack transparency at the design and implementation stages. As this is also an area in which there is widespread corruption, a monitoring mechanism with civil society involvement would help reduce corruption.

Status

Midterm: Substantial

The 2014 Law on Anti-Corruption Strategy of Ukraine for 2014-2017^{[Note 42: http://bit.ly/1LvuQWk. ]} provided, as one of the measures to be taken, the implementation of “pilot projects of integrity pacts in infrastructure projects or other projects, which include significant budget expenses, by forming tripartite (government-business-civil society) mechanism of control over design and implementation of such projects, targeted and efficient use of relevant funds.” The monitoring of infrastructure projects can be seen as implementation of this measure. The Ministry of Infrastructure developed several versions of the draft regulations in 2015, but CSOs criticised the drafts because they did not grant sufficient power to the monitoring structures. The draft regulations allowed the setting up of permanent monitoring panels (committees) for infrastructure projects at the central and local executive authority levels. The panels would comprise representatives from CSOs and other non-governmental stakeholders selected through an open competition. Despite much effort to develop the regulations, none of its versions reached the government meeting.^{[Note 43: Independent Reporting Mechanism (IRM) Progress Report 2014-15: Ukraine, 44-45. ]}

End of term: Limited

Since the midterm report, no progress has been made to adopt the regulations. On the contrary, from the government self-assessment report, it appears that the commitment’s implementation has been halted, and no further attempts to finalise and adopt relevant regulations have been made. The government reported that the Ministry of Infrastructure is reviewing whether they should continue to implement this commitment.

The Ministry of Infrastructure developed draft regulations in cooperation with NGOs (in particular, TI-Ukraine and the Centre for Political Studies and Analysis). However, the draft text had to be revised twice, and the original text was weakened after the approval process was conducted among ministries and other government agencies. Due to ministry and agency reluctance to endorse the regulations to provide citizens with meaningful oversight instruments, the draft regulation was stopped.

Did it open government?

Civic Participation: Did not change

Public accountability: Did not change

The commitment set an ambitious aim of direct involvement of non-governmental stakeholders in the process of designing and implementing infrastructure projects with the use of public funds. Such oversight would be conducted via special panels (monitoring committees) to review budgets and designs of the projects, procedures for selection of contractors, procurement and other related contracts, and disbursement and use of public funds. However, as implemented, this commitment did not lead to any change in government practice.

Carried forward?

The commitment was not carried over to the new action plan. The new plan contains a commitment on implementation of the Construction Sector Transparency Initiative (COST), but the latter focuses on disclosure of information, and does not include instruments for civic oversight in specific projects. The IRM researcher recommends that the government adopt, without further delay, regulations that provide a robust mechanism of civic oversight for the implementation of large infrastructure projects using public funds. The government should also consider the possibility of establishing provisions on such oversight panels in the law to make them permanent and effective.