The Public Investment Watchdog №1, February 2026

As part of the Public Investment Watchdog project, the Institute for Economic Research and Policy Consulting, the Centre for Economic Strategy, and Technologies of Progress are publishing a series of monitoring reports on public investment management reform and its implementation in practice.

The first issue focuses on key changes in the public investment management (PIM) system, its regulatory framework, and the implementation of the reform at both the national and local levels. The legislative and regulatory framework for the new system is already in place, but it continues to evolve, with further changes and improvements expected based on lessons learned from the reform’s implementation.

The report also examines institutional capacity and coordination among the key actors in the PIM system. The effectiveness of the reform will depend not only on establishing new rules and procedures, but also on coordinated action among the key stakeholders and strong leadership throughout the implementation process.

Digitalisation is becoming an important component of the new system. The report looks at the development of DREAM as an IT system for public investment management. The portal already provides information on the state’s Unified Project Portfolio and investment projects submitted by many municipalities, helping improve transparency and the tracking of public investments.

The monitoring also analyses construction procurement. In January 2026, the number of construction procurements declined slightly, while the amount of funds spent increased. Most procurements were related to healthcare facilities. Efforts to strengthen energy infrastructure also continued. The Kyiv region accounted for the largest number and value of construction procurements.

Another important focus of the issue is the scale of destruction and Ukraine’s recovery needs. According to RDNA5, the value of war-related damage increased by $19 billion in 2025, reaching $195 billion over the entire period of the full-scale war, while total recovery and reconstruction needs rose to $588 billion. Since 2022, housing, transport, energy, commerce, and industry have suffered the greatest damage, accounting for 74% of total destruction. At the same time, in 2025, losses increased significantly in regions further from the front line, as did damage to municipal infrastructure.

The report also examines how public investment management reform is changing the approach to financing reconstruction with public funds. Reconstruction financed by the state is to be carried out within and according to the rules of the new public investment management system. According to RDNA5, Ukraine’s recovery needs for 2026 amount to $15 billion for 195 projects, with priority given to transport, energy, housing, and municipal infrastructure.

More analysis is available in the first issue of the Public Investment Watchdog for February.