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  • In April, Ukraine stepped up procurement of reconstruction works and services — Recovery Watchdog project

    10.06.2025

    According to the Recovery Watchdog project, Ukrainian contracting authorities significantly increased procurement for construction and reconstruction in April 2025. The value of completed tenders amounted to UAH 25 billion. By comparison, over the previous three months of 2025, procurement totaled UAH 44 billion.

     

    The most considerable contracting authority during this period was the Recovery Service in Dnipropetrovsk Oblast, which held three tenders in April for the design and new construction of a water intake facility on the Southern Bug River and a main water pipeline to supply Mykolaiv. The total value of these tenders was UAH 6.2 billion.

     

    The second-largest procurer was a military unit, which contracted for the construction of a non-explosive barrier system in Donetsk Oblast, worth UAH 2.8 billion.

     

    In total, in April 2025, Ukrainian military procurers completed 521 tenders in the field of defense construction, valued at a total of UAH 3.45 billion. In contrast, only 155 tenders worth UAH 0.2 million were completed in January through March. As a result, the share of defense-related procurement in the overall construction and reconstruction sector rose from 0.2% to 14%.

     

    At the same time, competition in reconstruction and construction tenders remained very low in January–April 2025, with 95.5% of all procurements having only one bidder.

     

    However, according to the project, when tenders attracted multiple potential contractors, the final procurement prices could drop significantly.

     

    For example, the Restoration and Infrastructure Development Service in Lviv Oblast held two tenders for the development of design documentation for freight truck parking areas. During the bidding process, the price for one contract fell from UAH 4 million to 1.2 million, and the other from UAH 5 million to 1 million — a decrease of 70% and 80%, respectively—the reason: high competition, with 17 companies participating — the highest number of bidders this year.

     

    More details on reconstruction procurement outcomes for January–April are available via the following link:

    The Recovery Spending Watch project is a joint initiative of the Institute for Economic Research and Policy Consulting (IER), the Centre for Economic Strategy, and the Progress Technologies NGO, funded by the European Union.

     

    Media contact:
     Olena Shkarpova
     📧 shkarpova@ier.kyiv.ua

     

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