The experiment failed without even starting: how the government is going to build a home for IDPs

In the summer of 2024, Ukrainian media spoke about a large -scale initiative: construction of social housing for internally displaced persons (IDPs). Representatives of international institutions have repeatedly declared their readiness to support the program. In particular, European Investment Bank (EIB) plans Allocate 400 million euros for the construction of social lifetime, half of which are credit.

« EIB plans to provide credit resources for the amount of 200 million euros that will be structured as a frame credit to Ukraine (sovereign credit). The possibility of providing appropriate grant support is currently discussing with development partners, » – reads in EIB letters, addressed by the Ministry of Finance.

The Ministry of Community and Territories Development is the initiator of the project. It developed documents that outline the total framework of the project. According to them, it is planned to create a social rent fund and rent apartments at preferential prices.

The state plans to build apartment buildings that will be communal ownership of local self -government bodies (OMCs), and they will rent it to IDPs and other categories of the population that will require such housing.

The variant of housing construction in Belotserkovsky, Brovarsky, Buchan, Drohobych, Zhytomyr, Kryvyi Rih, Kropyvnytskyi, Lviv, Novovolynsk, Poltava, Rivne, Ternopil, Kharkiv, Khmelnytsky and Cherkasy districts is pre -worked out.

« Risk Assessment Center » analyzed government documents and identified a number of problems recorded in study.

Not a priority project

According to Reforms Public investment that should ensure transparency of use in reconstruction, all concepts of the relevant projects are submitted to a single digital integrated system management system of reconstruction process (Dream). Into the same system loaded and concept “Creating a Social Purpose Housing Fund”.

By design, the concept must contain a description Problems solved by the project, compliance with strategic documents, financing plan and accessibility of the project, plan of its implementation. WITHAngated in Dream The document is evaluated by the Ministry of Economy, the Ministry of Finance and the Ministry of Infrastructure and prepare conclusions.

Based on these estimates, a particular document scores a certain number of points that determines its priority and a chance of funding. The decision to include the project in the list of priority is made by the Strategic Investment Council.

September 10 2024 The second happened The meeting of this council, which approved a list of priority projects for financing for 2025. Despite its strategic feasibility and importance, the concept of building social housing received low points – only 2.8. As a result, it did not get to the list of priority. The reason is the « poor quality of preparation of the concept » and « lack of part of the starting data ».

Promoted by the Ministry of Development in early 2025, the project on the creation of a social housing fund contains a number of shortcomings, one of which – Lack of financial and economic calculations and data on which these calculations could be based.

During the approval of the document, the Ministry of Finance drew attention to the decision Accounting ChamberAccording to which the government has already had the experience of approving documents without financial and economic calculations and conclusions of the Ministry of Justice, Ministry of Finance, the Ministry of Economy and the Ministry of Defense.

It is a resolution on allocation of funds for the construction of main water pipelines in Kryvyi Rih, Nikopol and Tomakivka after the destruction of the Kakhovka hydroelectric power station. At that time, we had to review the project construction decisions and increase their financing more than 12 times: from UAH 1.5 billion to UAH 19 billion.

The Ministry of Finance also indicated the Ministry of Development and the Recovery Agency for the recommendation specified in the decision of the Accounting Chamber: to implement the experimental Project only in the presence of financial and economic payments and to oblige budget spending units to additionally control their use.

Expensive square meters

For 400 million euros from the EU and the EIB Ministry of Development plans To build 52 houses of social housing. The typical project of the house is: nine floors and 126 apartments, of which 72 are one -room (40 square meters), 36 – two -room (53 square meters), 18 – three -room (65 square meters). The total area of ​​apartments will be 5 958 square meters. m, and the cost of construction – UAH 333.65 million.

Based on this description, the cost of construction of one square meter of the apartment will be 56 thousand UAH without VAT. Is it expensive? Yes, and that’s why.

Thing is that the Ministry of Development regularly publishes indicators indirect value housing construction. In January, the average cost of building a square meter of apartment in Ukraine amounted to 23 841 UAH with VAT. This is twice less than the stated in the project.

« Risk Assessment Center » analyzed the cost of square meter apartments on Lun.ua in new buildings and homes, which are planned for 2025, with underground parking or special shelter in communities where social housing is planned. The result of the study gave the following prices per square meter with VAT:

• Bila Tserkva – UAH 36.8 thousand;
• Bucha – 37 thousand UAH;
• Zhytomyr-33-36.5 thousand UAH;
• Drohobych-35,4-36,65 thousand UAH.

Thus, the market cost of housing is 1.5 times lower than it is laid in the project.

“Risk Assessment Center” asked The Ministry of Development whether they consider the department to be justified in the department. This is a question there ignoredNoting that at meetings with the communities they decided to take a different price as a basis.

« The Ministry and representatives of the MPS analyzed information on the cost of construction in the regions … and agreed to take as a basis the average cost of construction, which is 42 thousand UAH per square meter, » – says the department’s response.

It was possible to reduce the cost of construction of a square meter of social housing due to manipulations, because 42 thousand UAH is the average cost of a square meter in the house, not apartments in it. Although this figure is smaller, the cost of erection of the house is the same: UAH 333.65 million.

The Ministry of Development explains that the cost is calculated on the basis of « averages » received at meetings with communities, but there is no detailed estimate. Moreover, the cost of 56 thousand UAH per square meter of the apartment includes projects, construction work, installation of engineering, construction of shelter, but not included VAT, land, connection to networks. That is, the total cost of such an experimental project will be higher.

It is noteworthy that the same problems are the Accounting Chamber indicated And in the case of construction of the water supply to Kryvyi Rih. Then the control and audit authority recommended that the renewal agency analyze in detail the market prices before concluding contracts for the supply of material resources and equipment, regularly update prices and control the compliance of the estimates with these prices.

Without a competition and transparent rules

The Ministry of Development during the preparation of the social housing project should provide for rules and procedures that make corruption offenses impossible.

Instead, it has laid the closing process of selecting the reuse of the associations of citizens in which the project will be implemented and the professional community of architects will be implemented. This undermines confidence in public authorities and calls into question the effectiveness of their decisions.

In the project of the resolution About the creation of a social rent fund not Architectural competitions are envisaged and the criteria for the selection of re -use projects are not determined. Such projects will be recommended by the recovery agency.

This approach It gives rise to corruption risk caused by the discretion of the agency officials. Moreover, it is contrary to the guidelines of the recovery process laid down by the EU initiative of Ukraine Facility. Within the latter, Ukraine receives assistance for 50 billion euros.

The experience of other countries shows that the competition of ideas gives the best solutions. Without transparent selection, there is no guarantee that housing will be truly convenient, durable and will meet modern energy efficiency standards.

What next

Now The experimental project of creating a social rental fund contains significant disadvantages that can jeopardize its efficiency and further implementation. The lack of clear source data, financial and economic justification, competitive approach to the choice of architectural decisions and transparent implementation mechanisms creates the risks of inefficient use of funds and long-term problems with the provision of housing of internally displaced persons.

As a result, the experiment on the construction of social housing has actually failed, not even starting, because due to poor quality of preparation, he has not got to a single portfolio of public investment projects of priority for financing for 2025.

However, it is too early to put the final point in this story. In response to a « Risk Assessment Center » request, in the Ministry of Economy It was reported that the initiators of the projects will be given another opportunity to submit projects in Dream.

« After the creation of a new methodology and the opening of the DREAM ecosystem, the main spending units in 2025 will be able to prepare and submit concepts of public investment projects that will require funding from the state budget, state support or implemented within the framework of public-private partnership, » they replied.

This means that the Ministry of Development will have time to correct deficiencies, eliminate risks and errors. You can improve the project of creating a social rent fund through the following recommendations.

Collect data As for the real need for IDP housing and other categories of socially disadvantaged sections of the population. Conduct a sociological survey on the number of persons in need of such housing and ready to pay for it.

Analyze Alternative ways Solving housing problems for IDPs at the expense of other existing state, international programs (Charity Hansen Ukrainian Mission, NefcoEU, etc.) and projections that are already implemented at the local level.

For example, the mechanism of redemption of housing provided by the relevant government by decreewill allow you to solve IDP housing than construction, and also contains much less risks.

To carry out financial and economic calculations to the project of the government’s resolution, taking into account the data collected.

View the mechanism Determination of indicators indirect value housing construction taking into account the urgent cost of housing construction and Apply the following indicators in the forecasting of public investment.

To introduce Transparent mechanism Selection of reuse of construction projects on a competitive basis with a certain clear technical task. This will allow quality and modern social housing projects that will meet the standards of inclusiveness, energy efficiency and urban development.

Clearly identify the functions of each of the participants Experimental project, namely the Ministry of Development, Agency for Recovery, Recovery and Development Services in Oblasts, Management Groups of Recovery Projects, Local Self -Government Bodies.

We recommend when preparing the following concepts predict mandatory filling in all information defined order Preparation, presentation, evaluation and determination of criteria for priority of concepts of public investment projects. IN In case of failure or failure to provide information, such a concept should not be allowed to evaluate and, accordingly, cannot be included in the list of priority for financing.

In addition, all subsequent stages of the concepts of public investment projects that were included in the list of priority for the next year should be reflected in the DREAM system, including documents of documents, approval and conclusions provided by other public authorities.

The introduction of these recommendations will minimize corruption risks, increase the efficiency of use and improve the quality of public investment projects implemented at public and international expense.