On March 13, the Global Business for Ukraine and European Business representatives met with Mustafa Nayem, Head of the State Agency for Infrastructure Reconstruction and Development of Ukraine. The Agency was established not long ago, so it was important to learn about its tasks and plans and discuss ways of cooperation with business.
The Agency was established in January 2023 after the merger of the State Agency for Infrastructure Projects and the State Road Agency. Its activities are directed and coordinated by the Cabinet of Ministers of Ukraine through the Vice Prime Minister for Reconstruction of Ukraine – Minister of Community, Territorial and Infrastructure Development.
In its work, the Agency will focus on coordinating the immediate restoration of destroyed or damaged facilities of strategic importance to the state. The main priorities are critical infrastructure, energy and housing facilities that need to be restored in the near future and cannot be delayed till the end of hostilities.
It is possible to learn more details on the Agency’s tasks and responsibilities in the recently published Regulations on the State Agency for Infrastructure Reconstruction and Development of Ukraine.
What are the areas for cooperation between the Agency and business?
1. For companies that have export financing and are looking for where to direct their efforts – the Agency can help identify an object, industry, or region; 2. Public-private partnerships in the field of infrastructure, especially if destroyed or damaged, – businesses can apply to the Agency if they want to join the reconstruction; 3. The Agency advises international organizations, foundations, and governments on current reconstruction needs; 4. The Agency can provide information support and contacts, and facilitate communication with other authorities involved in the recovery and reconstruction process.
What does the Agency not do? The Agency does not deal with financing issues – it does not provide loans or subventions, nor does it select objects or prioritize their restoration. The priority will be determined by the Ministry of Infrastructure and other ministries and local authorities and will depend on the availability of funding.
In the context of housing restoration, the Agency’s area of responsibility will include major repairs of the housing stock, while the requests for the restoration of housing from scratch can be submitted to the Agency by local authorities.
To ensure maximum transparency, Mr. Nayem and his team plan to create digital monitoring of the projects that will be in the Agency’s work, so that every stage of implementation can be tracked.
The source of funding for the reconstruction of such projects will be the state budget, including special funds (for the elimination of the consequences of russian aggression, the reserve fund, and the road fund), as well as direct loans or grants. Participation in the reconstruction will be possible through open tenders.
The EBA and GB4U are grateful to Mr. Nayem for his participation and familiarization with the work of the newly established body and is ready to join the coordination of business involvement in the process of urgent reconstruction of important critical and social infrastructure.