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Ukraine

CoST Beneficial Ownership Standards (UA0062)

Overview

At-a-Glance

Action Plan: Ukraine Third National Action Plan 2016-2018

Action Plan Cycle: 2016

Status: Inactive

Institutions

Lead Institution: Ministry of Infrastructure, Ministry of Regional Development, Ministry of Economic Development, Ministry of Finance, Ukraine State Roadway Agency (Ukravtodor).

Support Institution(s): Transparency International Ukraine and Eidos Centre for Political Studies and Analysis non-governmental organisations, Advisory Steering Group of the Construction Sector Transparency Initiative (CoST), other civil society institutions and international organisations (by consent).

Policy Areas

E-Government, Fiscal Transparency, Infrastructure & Transport, Legislation & Regulation, Open Contracting and Procurement

IRM Review

IRM Report: Ukraine End-of-Term Report 2016-2018, Ukraine Mid-Term Report 2016-2018

Starred: No

Early Results: Marginal

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information

Potential Impact:

Implementation i

Completion:

Description

Event: Introduction of the Construction Sector Transparency Initiative (CoST) international standards in order to ensure the accountability of procurement organisations and open access to information during publically funded construction work.; Implementation timeframe: 2017; Entities responsible: Ministry of Infrastructure, Ministry of Regional Development, Ministry of Economic Development, Ministry of Finance, Ukraine State Roadway Agency (Ukravtodor).; Partners: Transparency International Ukraine and Eidos Centre for Political Studies and Analysis non-governmental organisations, Advisory Steering Group of the Construction Sector Transparency Initiative (CoST), other civil society institutions and international organisations (by consent). Expected results: Ensuring the: Implementation of four pilot projects by the Construction Sector Transparency Initiative (CoST) regarding the disclosure of data on construction sites, major renovations and road infrastructure reconstruction, and the publication of reports on the data by a group of independent experts (first half of the year 2017). Adding of other construction sites using public funds to the standards for information disclosure of the Construction Sector Transparency Initiative (CoST) (March 2017). After the successful implementation of the four pilot projects of the Construction Sector Transparency Initiative (CoST), filing of proposals on the required amendments to regulations aimed at enhancing the efficient of use of public funds by applying the information disclosure standards of the Construction Sector Transparency Initiative (CoST) (second half of 2017). Approval of a mechanism to apply the standards of the Construction. Sector Transparency Initiative (CoST) at the level of by-laws in order to ensure transparency of the use of public funds during the construction of infrastructure and to improve the accountability of procurement organisations (December 2017).

IRM End of Term Status Summary

6. Introduce the Construction Sector Transparency Initiative standards

Commitment 6. Introduce the Construction Sector Transparency Initiative standards

Commitment Text:

Introduction of the Construction Sector Transparency Initiative (CoST) international standards in order to ensure the accountability of procurement organizations and open access to information during publically funded construction work.

Expected results: Implementation of four pilot projects by the Construction Sector Transparency Initiative (CoST) regarding the disclosure of data on construction sites, major renovations and road infrastructure reconstruction, and the publication of reports on the data by a group of independent experts (first half of the year 2017). Adding of other construction sites using public funds to the standards for information disclosure of the Construction Sector Transparency Initiative (CoST) (March 2017). After the successful implementation of the four pilot projects of the Construction Sector Transparency Initiative (CoST), filing of proposals on the required amendments to regulations aimed at enhancing the efficient of use of public funds by applying the information disclosure standards of the Construction Sector Transparency Initiative (CoST) (second half of 2017). Approval of a mechanism to apply the standards of the Construction Sector Transparency Initiative (CoST) at the level of by-laws in order to ensure transparency of the use of public funds during the construction of infrastructure and to improve the accountability of procurement organizations (December 2017).

Responsible Institutions: Ministry of Infrastructure, Ministry of Regional Development, Ministry of Economic Development, Ministry of Finance, Ukraine State Roadway Agency (Ukravtodor).

Supporting Institutions: Transparency International Ukraine and Eidos Center for Political Studies and Analysis non-governmental organizations, Advisory Steering Group of the Construction Sector Transparency Initiative (CoST), other civil society institutions and international organizations (by consent).

Start date: December 2016..                                     End date: August 2018

Commitment Aim:

The commitment intends to introduce the Construction Sector Transparency Initiative (CoST) international standards. The commitment aims to open access to information about publicly funded construction work. It entails the implementation of four pilot projects by CoST standards and the publication of reports by independent experts. It would add CoST standards to other construction sites that use public funds. The commitment also requires the filing of proposals on the required amendments to regulations introducing CoST standards. In addition, the commitment involves approval of a mechanism to apply CoST standards at the level of government decrees.

Status

Midterm: Substantial

During the first year of the action plan, this commitment demonstrated substantial progress. Construction Sector Transparency Initiative (CoST) standards have been implemented in the four pilot infrastructure projects. [103] Independent experts wrote CoST reports on these pilot projects, and the government has made them available online. [104] In December 2016, the Ministry of Infrastructure planned for four additional pilot projects. [105] CoST Ukraine drafted recommendations to amend government regulations. [106] However, by the end of midterm, these bylaws had not been adopted. For more information, please see the 2016–2018 IRM midterm report. [107]

End of term: Complete

During the second year, the government completed implementation of the commitment. Construction Sectory Transparency Initiative (CoST) Ukraine launched an online portal. [108] The portal provides CoST standards information about projects of three state companies and three local authorities. The state companies are Kyiv road maintenance company Kyivavtodor, [109] nationwide road maintenance company Ukravtodor, [110] and electricity infrastructure maintenance company Ukrenergo. [111] The local authorities are Lviv Oblast State Administration, Sumy Oblast State Administration, and Ternopil Oblast State Administration. The portal discloses information about 3,331 construction projects worth over UAH 46 billion in public funds. The portal presents information in map and table formats. [112]

A CoST Ukraine representative noted an exemplary 93 percent disclosure rate by Ukrenergo. [113] However, a civil society expert from Transparency International Ukraine noted a low disclosure rate by Ukravtodor. [114] Relatedly, the CoST portal listed eight projects financed by international financial institutions (IFIs) during 2016–2018. [115] However, among them, the project Go Highway, financed by IFIs, was not listed. [116] The CoST Ukraine representative confirmed a lack of information about IFI-supported Ukravtodor projects but emphasized the transparency regarding the Ukravtodor projects that utilize public funds. [117]

In the legislative domain, on 20 December 2017 the Cabinet of Ministers issued decree #1100. [118] The decree introduced amendments to regulation #835 [119] on mandatory open datasets. It obligated Ukravtodor to publish data on construction, reconstruction, and the repair of public automobile roads of state significance (public roads of regional, national, and international scale) according to CoST standards. Consequently, CoST standards have been legally institutionalized. In addition, the government mandated the central government agency responsible for road construction policy at the state level to disclose extensive information on the use of public funds.

The government completed implementation of this commitment. The government implemented four planned pilot projects and four additional pilot projects. It published two expert reports, and it also filed and adopted legal amendments introducing CoST standards as mandatory for Ukravtodor.

Did It Open Government?

Access to Information: Marginal

The government introduced Construction Sector Transparency Initiative (CoST) transparency standards as mandatory for Ukravtodor and several other state companies. Local authorities proactively joined the initiative. These actions constituted a step forward in opening the government. However, stakeholders raised several concerns. In particular, despite the genuine political support from the minister of infrastructure and Ukravtodor’s proclaimed commitment to openness, the latter has gradually become more closed and provided contradictory and unverifiable data. [120] (Ukravtodor reports directly to the Cabinet of Ministers and therefore is accountable only to the Cabinet.) According to the representative of CoST Ukraine, despite government efforts and international financial institutions (IFIs) support, after 2016, Ukravtodor refused to provide access to documents about IFI-funded road construction and repair. [121] The CoST Ukraine representative concluded that UAH 2 billion of public funds taken as a loan by the Ukraine government from IFO are spent in a nontransparent way. [122] However, Ukravtodor is publishing the protocols of its Technical Council. [123] These disclosures provide technical, not financial, information.

Carried Forward?

To scale up the successful pilot cases, Construction Sector Transparency Initiative (CoST) Ukraine and other civil society groups should combine advocacy efforts. Together, they should work to convince the government to further introduce advanced CoST standards into Ukrainian legislation for all related national and local authorities. The government could introduce monitoring and assurance mechanisms to ensure the accuracy of the published information. Comprehensive reform of construction management and monitoring of infrastructure need to be introduced. This could be done both through legal acts and an integrated information technology product that can enable better tracking of infrastructure projects. The data on the CoST portal needs to be published in the format that allows easy cross checking with the data on public procurement and public spending available on ProZorro and E-data portals respectively.

[103] “The Interim Report on the Realization of the Action Plan for the Implementation of the Open Government Partnership Initiative in 2016–2018,” Civil Society and Authorities: Governmental Website, accessed 13 September 2017 (link no longer accessible as of 25 April 2018) http://civic.kmu.gov.ua/consult_mvc_kmu/uploads/attach-3467-910681586.doc.

[104] “Pilot Projects,” CoST Ukraine, https://costukraine.org/en/projects/.

[105] “The Interim Report on the Realization of the Action Plan for the Implementation of the Open Government Partnership Initiative in 2016–2018.”

[106] “CoST Recommendations,” CoST Ukraine, https://costukraine.org/projects/rekomendatsiyi-cost/.

[107] “Ukraine Mid-Term Report 2016–2018,” Open Government Partnership, https://www.opengovpartnership.org/documents/ukraine-mid-term-report-2016-2018-year-1/.

[108] “CoST Portal: Transparent Infrastructure,” CoST Ukraine, http://portal.costukraine.org/.

[109] Kyivavtodor, http://kyivavtodor.kievcity.gov.ua/content/pro-nas.html.

[110] Ukravtodor, http://ukravtodor.gov.ua/ukravtodor/pro_nas.html.

[111] Ukrenergo, https://ua.energy/about/.

[112] “CoST Portal: Transparent Infrastructure,” CoST Ukraine, accessed 20 September 2018, http://portal.costukraine.org/.

[113] Natalia Forsiuk (CoST Ukraine), interview with IRM researcher, 23 August 2018.

[114] Victor Nestulia (Transparency International Ukraine), interview with IRM researcher, 6 August 2018.

[115] “IFIs projects,” CoST Ukraine, http://portal.costukraine.org/proekti/ukravtodor/proekti-mfo/.

[116] “Slavomir Novak: ‘The Initiated Project Go Highway Is the Foundation for Integration between Ukraine and EU,’” Ukravtodor, http://ukravtodor.gov.ua/press/news/slavomir_novak_initsiiovanyi_proekt_go_highway_ye_osnovoiu_intehratsiinykh_protsesiv_mizh_ukrainoiu_ta_yes.html.

[117] Natalia Forsiuk (CoST Ukraine), interview with IRM researcher, 23 August 2018.

[118] “Cabinet of Ministers of Ukraine. The Regulation on 20 December 2017 #1100, The Government Portal,” Unified Web-Portal of Executive Authorities of Ukraine, https://www.kmu.gov.ua/ua/npas/pro-vnesennya-zmin-do-polozhen.

[119] “Cabinet of Ministers of Ukraine. The Decree on 21 October 2015 #835, The Government Portal,” Unified Web-Portal of Executive Authorities of Ukraine, https://www.kmu.gov.ua/ua/npas/248573101.

[120] Natalia Forsiuk (CoST Ukraine), interview with IRM researcher, 23 August 2018.

[121] Natalia Forsiuk (CoST Ukraine), email exchange with IRM researcher, 18 October 2018.

[122] Ibid.

[123] “Protocols 2018,” Ukravtodor, http://ukravtodor.gov.ua/4489/tekhnichna_rada/protokoly_2018_zasidannia_tekhnichnoi_rady_derzhavnoho_ahentstva_avtomobilnykh_dorih_ukrainy.html.


Commitments

  1. Infrastructure Data Portal

    UA0070, 2018, E-Government

  2. Open Standard for e-System

    UA0071, 2018, E-Government

  3. Ensuring Openness and Transparency of Selling Public Assets and Property

    UA0072, 2018, E-Government

  4. Transparency in Public Procurement (Prozorro)

    UA0073, 2018, E-Government

  5. Awarenss Raising About Social and Economic Development

    UA0074, 2018, Aid

  6. e-Calls for Proposals to Support CSOs

    UA0075, 2018, Civic Space

  7. Beneficial Ownership Registry

    UA0076, 2018, Beneficial Ownership

  8. Anti-Corruption Training

    UA0077, 2018, Anti-Corruption Institutions

  9. Publishing Environmental Information

    UA0078, 2018, E-Government

  10. Database of Natural Resources

    UA0079, 2018, E-Government

  11. Interactive Map of Mines

    UA0080, 2018, E-Government

  12. Priority Electronic Services

    UA0081, 2018, Citizenship and Immigration

  13. Online Platform for Executive Bodies and CSOs

    UA0082, 2018, Civic Space

  14. EITI Online Data

    UA0083, 2018, E-Government

  15. Electronic Resources for Education

    UA0084, 2018, E-Government

  16. Online Verification of Education Certificates

    UA0085, 2018, E-Government

  17. Free Access to National Repository for Academic Texts

    UA0086, 2018, E-Government

  18. Administrative Service Decentrilisation and Improvement

    UA0057, 2016, Capacity Building

  19. United State Portal Extension; Electronic Government Information Services Unification; Modern Tools for Electronic Identification

    UA0058, 2016, Capacity Building

  20. System for Entities Performing Government Functions

    UA0059, 2016, Capacity Building

  21. Free Urban Planning Documentation

    UA0060, 2016, E-Government

  22. Beneficial Ownership Verification System

    UA0061, 2016, Beneficial Ownership

  23. CoST Beneficial Ownership Standards

    UA0062, 2016, E-Government

  24. Transpartent Budget System

    UA0063, 2016,

  25. Starred commitment Open Public Procurement

    UA0064, 2016, Capacity Building

  26. Starred commitment Extractive Industries Transparency Initiative

    UA0065, 2016, Extractive Industries

  27. Environmental Public Monitoring

    UA0066, 2016, Environment and Climate

  28. Community Policing System

    UA0067, 2016, Education

  29. Draft Law on Public Consultations

    UA0068, 2016, Legislation & Regulation

  30. Development of E-Democracy.

    UA0069, 2016, Money in Politics

  31. Improve Government Rules on CSO Involvement

    UA0031, 2014, E-Government

  32. Financing of Charities

    UA0032, 2014, Civic Space

  33. Not-For-Profit Status for CSOs

    UA0033, 2014, Civic Space

  34. Public Participation Law

    UA0034, 2014, E-Government

  35. Establishing Rules on Processing Official Information

    UA0035, 2014, E-Government

  36. Access to Urban Planning Documents

    UA0036, 2014, E-Government

  37. Starred commitment Access to Communist-Era Archives

    UA0037, 2014, Legislation & Regulation

  38. Starred commitment Draft Law on Open Data

    UA0038, 2014, Legislation & Regulation

  39. Starred commitment Supervisory Mechanism for the Right to Information

    UA0039, 2014, Legislation & Regulation

  40. Compliance with EITI

    UA0040, 2014, Extractive Industries

  41. Monitoring of Infrastructure Projects

    UA0041, 2014, Anti-Corruption Institutions

  42. Adopt Regional Anti-Corruption Programmes

    UA0042, 2014, Anti-Corruption Institutions

  43. Corruption Risk Assessment Methodology

    UA0043, 2014, Anti-Corruption Institutions

  44. Starred commitment Asset Disclosure on a Single Web Portal

    UA0044, 2014, Asset Disclosure

  45. Law on Administrative Procedure

    UA0045, 2014, Legislation & Regulation

  46. Law on Streamlining Payment of Administrative Fees

    UA0046, 2014, E-Government

  47. Administrative Services Portal

    UA0047, 2014, E-Government

  48. Draft Law on Decentralisation of Administrative Services

    UA0048, 2014, Legislation & Regulation

  49. Draft Law on Social Services

    UA0049, 2014, E-Government

  50. e-Government Laws

    UA0050, 2014, E-Government

  51. Electronic Readiness Assessment

    UA0051, 2014, E-Government

  52. Government Regulations on Open Data

    UA0052, 2014, E-Government

  53. Electronic Democracy Development Roadmap

    UA0053, 2014, E-Government

  54. Open Budget Initiatives

    UA0054, 2014, E-Government

  55. e-Petitions

    UA0055, 2014, E-Government

  56. e-Governance Training for Local Government

    UA0056, 2014, Capacity Building

  57. Laws on Public Participation

    UA0001, 2012, Civic Space

  58. Amendments to the Law on Community Associations

    UA0002, 2012, Civic Space

  59. Amendments to Resolutions on Collaboration with Civil Society

    UA0003, 2012, E-Government

  60. Training for Public Servants on Consultations

    UA0004, 2012, Capacity Building

  61. Harmonisation of Access to Information Laws

    UA0005, 2012, E-Government

  62. By-Laws on Access to Information

    UA0006, 2012, Legislation & Regulation

  63. Guidelines for Classifying Data

    UA0007, 2012, Public Participation

  64. Public Information Recording Systems

    UA0008, 2012, Records Management

  65. Law on Public Broadcasting

    UA0009, 2012, Civic Space

  66. Public Access to Information in State Registers

    UA0010, 2012, E-Government

  67. Starred commitment Extractive Industries Transparency Initiative

    UA0011, 2012, E-Government

  68. Law for Controlling Declarations of Public Servants

    UA0012, 2012, Asset Disclosure

  69. Public Declarations of Officials’ Assets

    UA0013, 2012, Asset Disclosure

  70. Guidelines on Conflicts of Interest

    UA0014, 2012, Conflicts of Interest

  71. Updated Anti-Corruption Laws

    UA0015, 2012, E-Government

  72. Regional Anti-Corruption Programmes

    UA0016, 2012, E-Government

  73. Law on Competitive e-Government Procurement

    UA0017, 2012, E-Government

  74. Starred commitment Administrative Services Reforms

    UA0018, 2012, E-Government

  75. Electronic Access to Administrative Services

    UA0019, 2012, E-Government

  76. Governmental Web Portal of Administrative Services

    UA0020, 2012, E-Government

  77. Administrative Services in a Digital Format

    UA0021, 2012,

  78. Starred commitment Regional Administrative Service Centres

    UA0022, 2012, Public Service Delivery

  79. Programme for Promotion of e-Government

    UA0023, 2012, E-Government

  80. Electronic Collaboration Between Executive Agencies

    UA0024, 2012,

  81. Web-Based Petitions System

    UA0025, 2012,

  82. One Stop Shop for e-Reporting

    UA0026, 2012, E-Government

  83. e-Region Pilot Project

    UA0027, 2012, E-Government

  84. Network of e-Government Practitioners

    UA0028, 2012, Public Participation

  85. Public Libraries as Bridges Towards e-Governance

    UA0029, 2012, E-Government

  86. e-Government Knowledge Management Portal

    UA0030, 2012,