Local authorities have reduced their activity on DREAM, but construction procurement volumes remain at last year’s level

In August 2026, local authorities registered less than half as many new public investment projects on the DREAM platform as in July. At the same time, construction procurement in July was broadly in line with last year’s figures, although 99% of completed tenders attracted only one bidder. This is according to The Public Investment Watchdog №7, August 2026, published on the Big Recovery Portal.

DREAM: fewer projects and significantly less funding

In August, local authorities registered 300 new public investment projects (PIPs) on DREAM, compared with 704 in July. Nearly three-quarters of the new projects were concentrated in two areas: education (141) and municipal infrastructure and services (77). Analysts attribute this primarily to the availability of earmarked funding, particularly in education.

The estimated value of new projects registered by local authorities was UAH 11.6 billion. Expected funding fell to UAH 2.3 billion, compared with UAH 47.2 billion in July, while funding received fell to UAH 0.4 billion, compared with UAH 3.2 billion in July. Almost half of the expected funding was accounted for by two projects: the capital repair of a sidewalk in Mykolaiv (UAH 604 million) and the modernisation of the wastewater system in Nadvirna, Ivano-Frankivsk region (almost UAH 362 million).

At the regional level, 86 new projects were registered in August, most of them in healthcare (50) and education (15). Their estimated value was UAH 3 billion, almost five times lower than in July. Despite the decline in the number of projects, funding received by the regions rose from UAH 0.3 billion to UAH 0.4 billion. The largest regional projects in August were the reconstruction of a cardiology building in Zaporizhzhia (UAH 900 million) and the reconstruction of Kyiv City Children’s Clinical Hospital No. 2 (UAH 212 million).

Overall, since September 2025, more than 16,000 local projects with an estimated value of UAH 1.2 trillion and nearly 4,700 regional projects have been registered on DREAM.

Procurement: volumes remain at last year’s level, but competition is almost absent

In July 2026, contracting authorities conducted around 13,500 procurements for construction works and current repairs worth UAH 28.7 billion. Compared with July 2025, the number of procurements fell by 12%, while their total value increased by 7%.

The largest contracting authority was the Department of Capital Construction of the Kharkiv Regional State Administration, which conducted procurements worth UAH 3.2 billion. It also accounted for the two largest procurements of the month: the construction of artesian wells to provide drinking water (UAH 1.7 billion) and the construction of the Regional Oncology Centre in Kharkiv (UAH 1.2 billion). Another major contracting authority was Kyivteploenergo, which conducted procurements worth UAH 2.4 billion for the reconstruction of facilities with physical protection and the construction of energy interconnections. Overall, the largest procurements in July concerned energy, water supply and roads.

The market remains concentrated: the ten largest contracting authorities accounted for half of the value of completed procurements, while the ten largest winning bidders received 39% of the total funds.

Only 28% of completed procurements were conducted through the electronic procurement system, but they accounted for the majority of funds – UAH 26.6 billion, or 52% of the total value.

The lack of competition remains a key problem. In July, 99% of completed procurements attracted only one bidder, while 86% of tenders lasted no longer than three days. At the same time, where there was competition, it generated significant savings. For example, in a procurement for the construction of a water supply network in Bucha municipality, involving three companies, the price fell from UAH 380.5 million to UAH 323.6 million (15%). In a procurement for current road repairs in Bila Tserkva district, involving five bidders, the price fell by 29%.

Construction procurement is concentrated in the largest regions: 22% of all procurements were conducted in Kyiv and Kyiv region. The fewest procurements were conducted in Kherson and Luhansk regions.

This material was produced as part of The Public Investment Watchdog project. The project is implemented by the Institute for Economic Research and Policy Consulting (IER) and Technologies of Progress, with financial support from the European Union.