The Public Investment Watchdog №4, May 2026

The Institute for Economic Research and Policy Consulting, the Centre for Economic Strategy, and Technologies of Progress present the fourth issue of the “Public Investment Watchdog” monitoring report.

This time, we examine changes in public investment planning at the national and local levels, as well as the preparation and financing of investment projects.

In particular, the government has updated the rules for developing and monitoring the implementation of the state’s Medium-Term Plan for Priority Public Investments. The plan will be developed annually for three budget periods as part of the Budget Declaration process and is intended to align strategic priorities, investment areas, and available resources. In May, the government also approved a list of sectoral strategies to be updated by the end of the year and used as a basis for planning priority investments.

The report also looks at how municipalities are adding public investment projects to their Unified Project Portfolios. The number of projects increased in May, although at a slower pace than in April. Municipalities are primarily submitting projects that have already received, or are expected to receive, state budget funding, while the amount of funding already allocated has not increased significantly.

The monitoring also analyses trends in construction procurement. In April, construction procurement rebounded after the decline at the beginning of the year, with the total value of procurements increasing by 56% year-on-year and their number by 2%. At the same time, consolidated budget capital expenditure increased by 16% year-on-year. Major areas of procurement in April included the construction of a shelter for a lyceum, road repairs, and protective structures for energy infrastructure. The Kyiv, Kharkiv, and Dnipropetrovsk regions were among the leaders by the number of construction procurements.

The report also examines the role of local development strategies as a link between community needs, investment projects, and funding. Ukrainian municipalities are only beginning to make active use of strategic planning, while the extensive experience of Polish gminas offers five practical recommendations for Ukrainian municipalities.

More details are available in the May issue of the “Public Investment Watchdog” monitoring report.