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Defense Ministry presents six-month plan for defense infrastructure reforms: audit of construction, provision of military housing, cost optimization

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The Ministry of Defense of Ukraine has presented a six-month plan of key steps in defense infrastructure reform. The document was presented during a meeting of the Council of Donors for Institutional Reforms with the participation of representatives of 25 countries and international organizations.

This was reported by Censor.NET with reference to the press service of the Ministry of Defense.

"In accordance with the established vision of the target structure of the Ministry of Defense of Ukraine and the results of the functional audit, the infrastructure sector should undergo transformation," said Deputy Minister Stanislav Haider.

Work is already underway on key points of transformation processes in defense infrastructure. Among them:

  • Unified development priorities

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Based on the approaches of NATO member states, a decision has been made to create a military infrastructure development function on the basis of one of the Ministry of Defense units. This function will be developed over the next two months. The task is to define clear priorities and directions for financing defense infrastructure during wartime by the beginning of the new budget year.

  • Eliminating duplication, optimizing administrative structures and costs.

By the end of the year, a number of organizational changes will be implemented to eliminate duplication of functions in the infrastructure sector. The administrative structures currently involved in the organization of construction in the Ministry of Defense will be significantly reduced without losing capacity. Starting from January 1, 2025, the procurement of secondary housing, modular structures, equipment and certain other items of the Ministry of Defense totaling several billion hryvnias will be transferred to the State Logistics Operator. These actions will result in the release of a significant financial resource.

  • Construction audit.

For the first time, the Ministry of Defense will conduct a comprehensive audit of military facilities under construction. Over the next 4-6 months, an inventory of all existing and frozen projects will be made to form a holistic vision of how to effectively spend funds in this area in 2025 and beyond. A strategic plan for managing construction in progress will be part of this vision.

  • Housing for the military

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The Ministry of Defense will change its approach to providing housing for the military. Instead of multi-year construction projects, clear and transparent financial mechanisms and financial support for housing will be introduced. The concept of such changes has already been formed, and discussions with financial institutions and non-governmental organizations have begun.

  • Transparency.

To create a transparent electronic record of land and buildings, the Ministry of Defense is working on an appropriate IT system. A prototype of such a solution has already been created, and the first results of the electronic accounting implementation are expected by the end of the year.

  • Efficient management and operation of infrastructure.

Work has begun on the creation of a civilian real estate agency that will manage land and other real estate on a commercial basis. The work of such an agency is based on the examples of NATO member states. Some pilot energy efficiency projects have already been launched to save infrastructure maintenance costs. However, a comprehensive policy and implementation of joint energy efficiency projects are needed. Work is underway to launch a partnership project in this area.

  • Joint infrastructure projects with partners.

At the same time, joint projects in the areas of construction, restoration (reconstruction) of defense infrastructure facilities such as health care facilities, military educational institutions, etc. are the subject of discussion with partners. Bilateral security agreements concluded with partner countries can also serve as the basis for such joint projects.