Draft law “On the basic principles of the recovery of Ukraine” has been presented. It is a broad legislative framework that will govern all aspects of reconstruction and recovery. It enshrines 14 key points of the state reconstruction policy and outlines the executors at each level, objects and forms of restoration are clearly recorded, as well as the project financing sources and the system of accountability and control based on the principle of everyone sees everything.
Olena Shulyak, head of the Servant of the People party, chairwoman of the Supreme Council Committee on State Power Organization, Local Self-Government, Regional Development and Urban Planning, reports that such draft law is an important part of fulfilling the terms of the Ukraine Facility plan, whereunder Ukraine will receive aid in the amount of 50 billion euros from the EU. It sets out mandatory compliance with the principles of a green, inclusive and digital economy, the use of better solutions and the approach to build better than it was before.
She notes, 14 key points are fixed as the main principles of the state recovery policy: people-centeredness, legality, the principles of the New European Bauhaus (NEB), the approach to build better than it was before, integration, decentralization and subsidiarity, cooperation and coordination, planning and prioritization of recovery, financial stability , integrity, responsibility, the principle of everyone sees everything, digitalization, non-discrimination and equal rights and opportunities both for women and men.
Mrs. Shulyak emphasizes, “The purpose of the legislative framework is to secure effective, transparent and accountable recovery of Ukraine, reducing damages caused by armed aggression of the Russian Federation, sustainable growth of the economy, as well as facilitating security, social and financial and economic conditions for the citizens of Ukraine. Launching this legislative instrument will allow us to overcome the consequences of the war and create conditions for socio-economic growth, improve the life of the population and business”.
Draft law clearly fixes objects and forms of recovery. Objects include damaged, destroyed and lost property, as well as other movable and immovable property, the restoration whereof will contribute to facilitating conditions for improving life of the population and the activities of business entities. Forms of restoration provide object-by-object and comprehensive restoration of destroyed/significantly damaged settlements. A special form of recovery shall be reimbursement for damaged and destroyed real estate objects. The parliamentarian adds,
State policy on recovery will be carried out by the Cabinet of Ministers of Ukraine, the Ministry of Recovery, the Agency for Recovery (the Council of Integrity), special regional centers (Ministry of Education, Ministry of Health, Ministry of Education, Ministry of Culture and Information Policy etc.), local state authorities and local self-government bodies.
“We also provided creating the Integrity Council at the Recovery Agency aimed to secure transparency and public control. Council will be formed on the grounds of open and transparent competition consisting of 15 people”.
A crucial aspect of the draft law shall be mandatory use of the DREAM digital reconstruction system for objects that are restored with the funds of the state budget or by order of the state, local self-government, state enterprises and communal property. Shulyak notes that it will secure automation of project management processes and will allow you to see every step of their implementation.
It will be a mandatory term to enter information about the objects, the customers of the current repair or construction whereof are state bodies, local government/municipal enterprises, institutions or organizations, subjects owning over 50% decisive share in the authorized capital of the state. In addition, information to be entered into the system shall concern objects financed from budget funds, as well as purchase of goods and services to be financed from the state budget.
The parliamentarian emphasizes, “The DREAM system plays a huge role in the reconstruction process. Its use is not only effective recovery planning. This is a unified approach to restoration project management, constant monitoring, an opportunity for prioritization in view of the needs of communities. The most important aspect is to secure transparency and availability of all information concerning the recovery process. In addition, the draft law also prescribed a transparent mechanism for selecting urban settlements for priority restoration at the expense of the state budget. In such cases, the decision will be made by the Cabinet of Ministers of Ukraine at the request of the Ministry of Reconstruction. It will be initiated either by the village/settlement/city council or by the military/military-civilian administration of the village, settlement or city”.
Funding sources will be funds from the state and local budgets, in particular, the State Fund for Regional Development, the Fund for Restoration of Property and Destroyed Infrastructure, and the Fund for Elimination of the Consequences of Armed Aggression.
In addition, the draft law provides using funds from international financial organizations and investors, international technical and returnable or non-returnable financial assistance, as well as reparations from the Russian Federation and other sources not prohibited by the legislation of Ukraine.
Finally, Mrs. Shulyak adds, “The draft law prescribes clear requirements for creating high-quality project documentation for construction in the framework of reconstruction process and its examination. All these processes should be exclusively digitized and should be entered and passed through the Unified State Electronic System in Construction. Speaking about restoration of Ukraine, it is not just about rebuilding all that was destroyed. The recovery of Ukraine is a much broader context. It will include facilitating conditions for comprehensive development and positive changes. Therefore, this law will become a kind of Constitution for restoration, with regards to the best global practices, aimed to create digital mechanisms mitigating corruption risks, as well as to provide restoration based on the approach to build better than it was before”.