Olha Budeichuk, Expert of the ‘Economy and Investments’ sectoral platform of the All-Ukrainian Association of Amalgamated Territorial Communities

Public investment reform in Ukraine is one of the key instruments for improving the efficiency of budget spending, transparency and effectiveness of projects implemented at the local level. Its implementation directly affects the ability of communities to plan and implement development initiatives, attract additional resources, and ensure sustainable local economic growth.

Today, communities face a number of challenges when implementing public investment reform. These include the need for the timely and high-quality development of strategic documents such as the Community Development Strategy and the Medium-Term Plan for the Implementation of Projects and Programmes (MTPIPP); submitting and administering projects in the DREAM digital ecosystem; and limited human resources and expert support. The state of martial law further complicates the financing and implementation of projects, particularly in relocated communities.

Research into the implementation of public investment reform in communities reveals key issues, identifies barriers and opportunities, and provides practical recommendations for local authorities and state institutions. This is especially important when the effective use of public funds is essential for both community development and the country’s overall recovery.

The procedure for preparing and creating a unified project portfolio of public investments for communities in DREAM ecosystem is worthy of particular attention. Currently, this is perhaps the most challenging issue for communities due to a lack of clarity and a unified approach to implementation.

To assess the readiness and needs of communities in this process, the All-Ukrainian Association of Amalgamated Territorial Communities (based on the ‘Economy and Investments’ sectoral platform) conducted a survey of local government representatives from different regions of Ukraine. The results help to outline the current situation, identify key challenges, and determine which tools and resources communities require most for effective local economic development planning.

General overview

The study involved representatives of communities from various regions of Ukraine, including those that have been temporarily occupied or relocated (Odesa, Sumy, Dnipropetrovsk, Poltava, Kyiv, Mykolaiv, and Chernihiv, among others). The respondents were primarily managers and specialists from economic development, finance, investment and urban planning departments.

State of implementation of the MTPIPP

• MTPIPP approved: over 68.8 per cent of communities.
• Partially implemented (individual projects): around 25 per cent of communities.
• No MTPIPP: around 5.5 per cent of communities, some of which have postponed the process due to military operations (in particular, frontline communities).
• Integration into the DREAM ecosystem: only a few communities have submitted complete data; some have submitted partial data; a significant number are not yet using the ecosystem.

Priority sectors in project portfolios

Communities most often plan projects in the following areas:

• municipal infrastructure and services (80 per cent of responses),
• education and science (70 per cent),
• healthcare (65 per cent),
• social sphere and public safety (50 per cent),
• energy and environment (40 per cent),
• transport and housing (35 per cent),
• digitalisation of public services (25 per cent).

This situation is quite obvious, given that medium-term planning at community level focuses on state priorities.

Sources of funding

The community noted the following sources of funding for public investment projects:

• state programmes and subsidies (80 per cent),
• the community’s own budget (70 per cent),
• international technical assistance and donor projects (50 per cent),
• private investment and PPP (less than 20 per cent).

Human resources

A reliable and qualified team is crucial for the implementation of PIM reform. However, an analysis of the current situation in communities, particularly in small rural, settlements and even urban ones, reveals a significant shortage of personnel. This has a negative impact on the development of local self-government capacity, and is one of the main management challenges communities currently face.

• There is a separate department/team – only in 30 per cent of communities.
• There are individual persons in charge – in 40 per cent of communities.
• There is no team at all – in around 30 per cent of communities.

Main difficulties and challenges communities face in implementing PIM reform

• lack of funding – over 80 per cent,
• lack of human resources – around 70 per cent,
• lack of quality data and analytics – 60 per cent,
• difficulty in attracting investors – 50 per cent,
• lack of monitoring and evaluation tools – 40 per cent.

Requests for support

A survey of community representatives revealed that, in light of the current challenges, communities most need:

• methodological and expert assistance in the formation of a single project pipeline (from idea to implementation),
• practical tools for monitoring and evaluating projects,
• training local specialists in modern strategic and investment planning tools,
• consultative and informational support when working with the DREAM ecosystem,
• assistance in finding and attracting external funding (donors, investors, PPPs).

Conclusions

Communities see the formation of MTPIPP as a key tool for local economic development, but the implementation process is still in its early stages in most communities.

The most pressing issues are funding, staff shortages and weak analytics.

There is significant demand for practical training, methodological support and digital tools, as well as clearer legislative regulation of specific processes.

DREAM is perceived as a promising ecosystem, but it needs better implementation support at the local level.

The Ministry for Development of Communities and Territories of Ukraine and the DREAM ecosystem team have had a significant impact on improving the implementation of public investment management reform in communities. This is achieved through public presentations of the reform and the development of methodological materials for communities.

The All-Ukrainian Association of Amalgamated Territorial Communities plays an active role in training events for local government representatives, seeking answers to complex community issues, lobbying for interests and providing information on current legislative developments. Between June and September 2025, a series of five webinars was held with the participation of representatives of ministries and experts, with a total of over 3,000 people taking part.

Despite the challenges and difficulties that communities are currently facing in implementing the PIM reform, the All-Ukrainian Association of Amalgamated Territorial Communities is ready to collaborate with others to develop effective solutions, share best practices and create a better future for capable local self-government.

The column reflects the opinion of its author only. The author is responsible for ensuring the accuracy of the information. The views expressed in the column may not coincide with those of the editorial staff of the Decentralisation Portal.