Public Investment Watchdog. April 2026

We have prepared the second analytical report as part of the new “Public Investment Watchdog” project. It is a monthly monitoring of the public investment system, as well as an analysis of construction and reconstruction procurement, which we have been conducting since 2023.

Key takeaways from the third issue:

• The government will review sectoral strategies – these should include approaches to public investment management (PIM). However, it is not yet clear which strategies will be reviewed, and how. Best case scenario, the relevant methodology will be approved in May.
• The government launched programmes for project preparation (Project Preparation Facilities – PPFs). The idea is that they will allow for ideas to be transformed into structured projects, ready for financing by international standards.
• The EU is preparing to fundamentally change the principles of regional policy. In order to receive access to structural funds and financing for postwar reconstruction, Ukraine must learn to play by the rules set by the EU: to reform project selection, as well as procurement and planning of public investment.
• Since the beginning of 2026, the number and value of construction procurement contracts remain substantially lower than last year (35% lower by value and 22% lower by number in Q1 2026). This can mostly be explained by a retrenchment of government spending under the conditions of uncertainty regarding outside financing. The implementation of the public investment management reform may have also partially slowed capital spending: in previous years, budgetary allocation was sufficient to receive funds, but from 2026, all projects must be registered in the DREAM system, meet strategic priorities, and receive an affirmative decision according to relevant procedures. Since not all participants have prepared quality projects in a timely manner, their approval and consequently, funds allocation and project realisation are delayed.
• In March 2026, the main procurement areas were energy infrastructure restoration and protection, as well as road repair given their state after the difficult weather conditions this winter. The highest number of construction procurement initiators were recorded in the Kyiv, Dnipropetrovsk and Kharkiv regions.

The “Public Investment Watchdog” project aims to offer systemic solutions to address the challenges of public investment reform. The project team will enhance the analytical monitoring of investment projects, develop practical tools to increase transparency, strengthen the capacity of local authorities, and support public oversight at the local level.

These materials were developed as part of the “Public Investment Watchdog” project, funded by the European Union. The project is a joint effort by the Centre for Economic Strategy, the Institute for Economic Research and Policy Consulting, and the NGO “Technology of Progress”. All project participants are members of the RISE UKRAINE coalition.