The M-03 Kiev -Kharkiv- Dovzhansky highway reconstruction project between Lubny and Poltava.The Ukrainian State Road Agency (Ukravtodor) has formally agreed to commence a CoST Ukraine programme shortly. In becoming the twelfth country to join CoST, Ukraine’s membership of CoST is supported by the Word Bank, who believes that it will play a vital role in driving greater transparency in the public construction sector.
The establishment of a CoST Ukraine national programme follows a multi-stakeholder workshop convened by the World Bank country office where representatives from government, industry and civil society expressed a strong determination to improve the efficiency of investments in infrastructure and ensure that it meets the needs of citizens.
By adopting CoST principles and engaging both public and private stakeholders, Ukravtodor hopes the CoST Ukraine programme will help strengthen transparency and accountability of public works administration, specifically to address poor governance and mitigate corruption, reduce risks and increase public safety, create fair competition in industry and increase the potential for foreign direct investment.
The M-03 Kiev -Kharkiv- Dovzhansky highway reconstruction project between Lubny and Poltava, co-financed by the International Bank for Reconstruction and Development (IBRD), was selected as a pilot project for testing the implementation and effectiveness of CoST principles in the country. Implementation is likely to commence later this year.
A scoping study has been published that identifies the need for a Decree of the Cabinet Ministers to provide a framework for CoST Ukraine.
The study felt that UAD’s commitment to greater transparency and openness in its work could be undermined by the political instability and a chronic lack of money. It also identified that unfair business practices and corruption in road construction sphere are large-scale and persistent with potential losses reaching up to 50% of the total budget for road construction and repairs. It is expected that the a Decree would provide the necessary high level political support that would be help to overcome these challenges and provide a secure basis for the CoST Ukraine programme.
A scoping study identifies how CoST can add value to transparency and accountability in public infrastructure by aligning CoST with existing efforts, by establishing a baseline of existing disclosure practices and by adapting its approach to the local context. Key to all of this is assessing how the political economy will influence the CoST programme.
The study also identified that information disclosure procedures and practices for information disclosure within UAD are sound and largely consistent with the domestic legal requirements and international practice. But the information was not disclosed regularly or systematically. There was also no systemic and consistent mechanism of civil society monitoring of UAD’s actions and spending. The study highlighted the role of Multi-Stakeholder Group which brings together civil society, the private sector and the government into a constructive environment to help fill this gap.
The study also recommended the adoption of the CoST Infrastructure Data Standard for piloting on a number of projects.
The study was carried out by Adam Smith International on behalf of the International Secretariat.