Ukraine’s network of more than 1,000 territorial communities now finds itself at a unique historical juncture. On the one hand, decentralisation has entrusted these communities with the authority and responsibility for their own development. On the other, the ongoing war has depleted resources and made the survival of critical infrastructure a key issue.
Ruslan Shcherbakov, President of the Regional Centre for Economic Research and Business Support | 5 February 2026
Communities with populations of up to 30,000 people account for around 95% of all communities currently under Ukrainian control. Yet they often remain invisible to major investors, despite being the very places where the country’s resilience is forged.
Communities at the epicentre of change
The Regional Centre for Economic Research and Business Support is a non-profit foundation that works with communities across Ukraine, and we have first-hand knowledge of the local investment and recovery challenges they face. Despite the war, these communities are increasingly taking the initiative. Rather than waiting for solutions from above, they’re independently seeking ways to achieve energy independence and environmental security.
However, showing initiative doesn’t always translate into results. Our recent assessments of municipal capacity and investment readiness reveal a significant gap between the ambition of these communities and their current capacity to effectively prepare projects that meet the requirements of potential donors, particularly the demanding compliance criteria of commercial and international banks.
This deficit is largely due to a critical shortage of qualified personnel and a lack of accessible tools. Local communities simply cannot afford expensive consultants, while state support mechanisms tend to prioritise large-scale infrastructure projects, resulting in local initiatives being overlooked.
Driving results, not just spending
Our view of the current state of public investment management reform in Ukraine is clear: the system must transition from a ‘patching holes’ model to one driven by data management. We welcome the development of Ukraine’s public investment management system – the Digital Recovery Ecosystem for Accountable Management (DREAM) – which represents a significant step forward in transparency. However, for a community project to be considered for inclusion in this ‘showcase’ and to attract investors, it must be technically and economically flawless.
We’ve also identified another systemic challenge: state institutions don’t always have the time or resources to provide communities with high-quality methodological support. To address this gap, we’ve launched the ‘project navigator’ designed to level the playing field, providing communities with comprehensive training in effective project management.
Advantages of an independent tool
Community representatives from across the country are already using the project navigator to organise and guide their recovery projects. First, the tool provides direct access to expertise. Second, as a completely independent tool, it helps stakeholders resolve the problem of ‘information overload’ and filter out unreliable data.
After entering their project data, communities can assess their compliance with basic sustainability requirements in a matter of hours. And the feedback has been unanimous: there’s a huge appetite for a digital solution that not only removes administrative burdens, but also pinpoints areas where projects can be improved. Some of its key advantages include:
- Independent and objective: With no political mandate, the tool provides an accurate reflection of a community’s actual readiness – one based on data rather than lobbying.
- Enhanced project readiness: Projects developed using the tool are primed to receive high scores in the DREAM system. The tool’s rigorous and transparent feasibility framework results in higher-quality project submissions that stand a much greater chance of being selected for the state’s public investment portfolio and securing funding.
- Impact monitoring: The tool enables donors not only to provide funding, but also to track the effectiveness of their investments through integrated monitoring modules.
From strategy to investment
This structured approach allows communities to develop their first green project portfolios. This means local waste management plans and energy strategies no longer just exist on paper; they become fully functioning roadmaps that serve as a credible foundation for securing project financing.
Ensuring that Ukraine’s public investment management reform truly benefits communities requires a far greater collective effort – from the state, its partners, international financial institutions, civil society, and the communities themselves. The success of any recovery project – particularly in the case of Ukraine – should solely depend on the quality of its strategy and the transparency of its plans.
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Theme: Ukraine's reconstruction
