Implementing OGP Action Plan (UA0111)

Measures to Implement the Action Plan

Transforming public investment management for recovery and development at the local and regional levels through the implementation of best practices in open government and open contracting.

The recovery and development of each community and region depend largely on the proper planning, preparation, prioritisation and implementation of public investment projects that are aligned with the strategic objectives of local communities and regions, as well as the interests of their residents and businesses. At the same time, the lack of clear mechanisms to ensure that these processes are carried out in accordance with the 'build back better' principle, with stakeholders involved in decision- making and monitoring, poses a significant challenge.

Based on the findings of the public investment management assessment carried out by the Government of Ukraine in collaboration with the World Bank, more than 15 different approaches to developing investment projects are currently used in Ukraine. However, there are no standardised procedures for their evaluation, the creation of a single project portfolio for prioritisation, funding allocation or monitoring of implementation. The standards for project design are outdated and do not take into account the 'build back better' principle. Investment decisions are often taken without considering strategic priorities; the level of transparency in these processes remains low; and citizens are largely excluded from discussions on the feasibility of investments and from subsequent monitoring of their implementation.

The Cabinet of Ministers of Ukraine is implementing a public investment management reform aimed at establishing a comprehensive, sustainable and effective system that ensures investment projects are planned in line with strategic priorities and the medium-term budgetary framework and selected in accordance with standardised and transparent procedures and clear criteria. As part of the reform, the Roadmap for Reforming Public Investment Management for 2024-2028 and an action plan for its implementation were approved (Order of the Cabinet of Ministers of Ukraine No. 588 of 18 June 2024), and the Strategic Investment Council was established (Resolution of the Cabinet of Ministers of Ukraine No. 549 of 14 May 2024). New methodological approaches to the preparation, evaluation and prioritisation of investment projects were introduced, a Unified Portfolio of Public Investment Projects was established, and implementation of the reform at the local level has begun. In addition, part of the functionality of the DREAM system has been developed to enable the digital transformation of the aforementioned processes and the Geographic Information System for Regional Development.

To address the existing problems, the following measures are proposed, in particular:
- to expand the functionality of the DREAM and the GIS for Regional Development using artificial intelligence tools to improve the quality of technical and economic feasibility studies, taking into account best practices;
- to ensure broader access to information on public investment;
- to introduce mechanisms for civic participation in the management of public investment.

The expected outcomes of these measures are:
- improved quality of planning and the effectiveness of public investment project implementation;
- increased participation of citizens and the private sector in decision-making on investment planning and implementation in local communities;
- reduced corruption risks during the planning and implementation of public investment;
- increased confidence among citizens and international partners in the selection and implementation of public investment projects.

It is anticipated that this activity will be submitted to the Open Gov Challenge organised by the international Open Government Partnership Initiative, as it aims to bring about systemic transformation in public investment management for recovery and development by combining digital tools, open government approaches and open contracting with the introduction of transparent procedures and the strengthening of accountability mechanisms at the local and regional levels. The activity envisages a transition from fragmented approaches and limited transparency to cross-cutting digitalisation of the key stages of the investment cycle (planning, preparation, prioritisation, selection, implementation and monitoring), expanded access to information, and the introduction of mechanisms for citizen and private-sector participation in discussing priorities and monitoring implementation. These measures will help reduce corruption risks and strengthen confidence in the recovery processes. Given the planned introduction of procedures and tools to engage citizens and other stakeholders in decision-making and the monitoring of investment projects, the main thematic area of the Open Gov Challenge in which the activity will be presented is digital governance. This is because the key implementation tool is the development and integration of digital systems to ensure the systematic disclosure of data and support management decision-making. An additional focus area is civic participation.

Milestones Table

Steps | Responsible agency | Completion time/period | Partners | Delivery indication
---|---|---|---|---
1. Integration of artificial intelligence tools into the DREAM system to support the preparation of public investment projects at local and regional levels | Ministry of Communities and Territories Development | June 2026 - September 2027 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent) | A number of AI-based services have been developed and implemented for use with the DREAM system
2. The implementation of the GIS for Regional Development in all territorial local communities and regions, and its integration with the DREAM system | Ministry of Communities and Territories Development | June 2026 - December 2027 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent) | The GIS for Regional Development has been implemented and is in use across all regions and in at least 90 per cent of the local communities
3. Implementation of an awareness-raising campaign aimed at government authorities, citizens and international partners regarding opportunities for interaction and cooperation at all stages of the life cycles of public investment projects at local and regional levels | Ministry of Communities and Territories Development | July 2026 - December 2027 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent) | The awareness-raising campaign has been carried out across all regions
4. Development and implementation of a comprehensive set of tools for accessing information on public investment | Ministry of Communities and Territories Development | June - December 2026 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent) | Functionality to manage public investments via the public portal, analytics module, an interactive map and the DREAM projects via the DREAM platform and the GIS for Regional Development (including a public portal, an analytics module, an interactive map, and open data in compliance with the OCDS standard)
5. The introduction of mechanisms for civic participation in the discussion and planning of public investment projects at local and regional levels using the DREAM platform, the GIS for Regional Development, other IT tools and offline mechanisms | Ministry of Communities and Territories Development | July 2026 - December 2027 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent) | A methodology has been developed for civic participation in planning and implementation of public investments. The trial functionality of the DREAM/GIS for Regional Development has been implemented to pilot the methodology
6. The introduction of a feedback mechanism regarding identified opportunities or shortcomings in the implementation of public investment projects at local and regional levels | Ministry of Communities and Territories Development | January - December 2027 | Open Contracting Partnership Initiative (subject to consent), civil society organisations (subject to consent), international organisations, development partners engaged in international technical assistance projects (programmes) (subject to consent) | The feedback mechanism has been developed. The trial functionality of DREAM/GIS for Regional Development has been implemented to pilot such a mechanism.