Transparent procurement: a special procurement organization will be created for the Recovery Agency
1 April 16:36
The Cabinet of Ministers of Ukraine has decided to establish a centralized procurement organization for the State Agency for Reconstruction. This was reported by the Ministry of Communities and Territories Development, Komersant ukrainskyi reports.
The decision also provides for the introduction of unified standards of control systems and an appropriate level of accountability, which will increase the transparency of procurement.
“For the first time at the state level, we will conduct procurement for construction in a centralized manner,” commented Oleksiy Kuleba, Vice Prime Minister for Recovery and Minister of Communities and Territories Development of Ukraine.
Also, as explained by the Recovery Agency, for the first time in Ukraine, customers will be able to purchase not only goods, but also works and related services in a centralized manner.
What is envisaged by the government decision
The State Enterprise Infrastructure Projects has been designated as a centralized procurement organization under the management of the Recovery Agency, which will coordinate the activities of procuring entities.
Procurement through the Centralized Procurement Organization will cover: expertise of construction projects and technical supervision, engineering and consulting services, construction works and goods necessary for this, as well as road maintenance.
All procurement will be carried out through open bidding, including under framework agreements, in accordance with the Law on Public Procurement and government regulations.
The Ministry of Communities and Territories Development and the Reconstruction Agency will soon present the final model of the Centralized Procurement Organization. A competition to select the head of this organization will also be announced and corporate governance elements will be introduced.
What does the Recovery Agency do?
The Agency’s activities include projects to rebuild war-damaged buildings, bridges, and road infrastructure.
Restoration of Borodianka and Vasylkiv in Kyiv region, reconstruction of a destroyed bridge in Kharkiv region, repair of the bridge over the Kofa Canal in Odesa region, reconstruction of a house in Zaporizhzhia, repair of important frontline roads in Sumy region, development of border infrastructure at the Yahodyn-Dorohusk checkpoint are among the Agency’s activities.
For example, the project “Building Resilient Infrastructure in Vulnerable Environments in Ukraine” (DRIVE) provides for major repairs of roads and bridges in 19 regions of Ukraine, reform of national roads, installation of modular bridges, as well as technical assistance and project management. The World Bank Board of Directors has recently approved $432 million in financing for this project. Of this amount, $422 million is provided in loans and $10 million in grants.
The Recovery Agency is also involved in the implementation of the Emergency Recovery Program, which is being implemented by the Ministry of Community and Territorial Development together with the Japan International Cooperation Agency (JICA). The very first agreement was signed in March 2023. Since then, 3 phases of the Program have already been implemented. A grant of 8.8 billion Japanese yen, or about $60 million, has been allocated for Phase 4. It will implement 6 subprojects aimed at supporting humanitarian demining; maintaining energy infrastructure; restoring water supply systems; supporting public health and safety projects; providing educational services; and improving public infrastructure in the regions.
Development of border infrastructure is another of the priorities of the Recovery Agency for this year. The Reconstruction Agency currently manages 27 checkpoints. One of the immediate tasks is to formalize the rights of permanent use of the land plots where the checkpoints are located.
Another priority project of the Reconstruction Agency is the modernization of street lighting. 402 communities from all over Ukraine have already applied for participation in the project, and they would like to install energy-efficient street lighting. In total, the project plans to replace up to 2 million LED street lights across the country. A quarter of them will be equipped with a system that automatically changes brightness depending on the ambient light level.
