During a gathering of the Council of Donors for Institutional Reforms with delegates from 25 countries and international organizations, a dedicated team headed by Deputy Minister of Defence of Ukraine Stanislav Haider introduced a six-month plan of key measures in defense infrastructure reform.

“In line with the envisioned target structure of the Ministry of Defence of Ukraine and the functional efficiency audit results, a transformation is needed for the infrastructure sector,” mentioned Stanislav Haider.

The Deputy Minister reminded that his team had initiated efforts in this field six weeks prior. “We consider infrastructure a crucial component of our capabilities that needs to be developed. We clearly understand what to do over the next six months and how to transform this area,” said Stanislav Haider.

According to Stanislav Haider, efforts are already being made to address key aspects of transformation in the defense infrastructure. These include:

• Coordinated development priorities. 

In times of warfare, when facing continuous missile attacks, the development of the required military infrastructure to accommodate personnel and equipment is critical. Based on the approaches of NATO member countries, a decision was made to designate one of the Ministry of Defence’s units to perform a function focused on developing military infrastructure. This function will be developed over the next two months. By the start of the new fiscal year, our task is to determine clear priorities and areas of defense infrastructure funding in times of war. 

• Increasing efficiency by eliminating duplications, streamlining administrative structures, and optimizing costs. 

At the end of the year, a series of organizational changes will be enacted to eliminate overlap in infrastructure functions. The Ministry of Defence plans to reduce its administrative structures related to construction arrangements without compromising their functionality. The Ministry of Defence's acquisition of secondary housing, modular structures, equipment, and certain other items worth several billion UAH will be shifted to the State Operator For Non-Lethal Acquisition (DOT) starting January 1, 2025. These initiatives will result in a substantial release of financial resources. 

• Audit of the building and construction 

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

• Housing accommodations for service members. 

The Ministry of Defence is going to change its approach to the provision of military housing. The focus will shift towards clear and transparent financing mechanisms and financial aid for housing, moving away from multi-year construction projects. The concept for such changes is already set. Discussions with financial institutions and non-governmental organizations have begun. 

• Transparency. 

The Ministry of Defense is developing an IT system to create a transparent electronic record of land and buildings. A prototype of such a solution has already been devised, and the first outcomes of the electronic accounting implementation are expected by the end of the year.

• Efficient management and use of the infrastructure.

Steps have been taken towards establishing a civilian real estate agency that will manage land and other real estate properties for commercial purposes. The agency's operations are modeled after NATO member countries. The commencement of some pilot energy efficiency projects aims to save on infrastructure maintenance costs. Nonetheless, there is a need for a comprehensive policy and the implementation of joint energy efficiency projects. Efforts are being made to establish a partnership project in this domain.

• Collaboration with partners on joint infrastructure projects. 

Throughout the war, the main emphasis in our collaboration with partners has been and remains on weapons. Concurrently, discussions are ongoing regarding joint projects aimed at constructing and restoring (reconstructing) defense infrastructure facilities, including healthcare facilities, military educational institutions, etc. The groundwork for such joint projects can also be laid through bilateral security agreements with partner countries. The implementation of joint projects will strengthen the capabilities of the Defence Forces for both military and development needs.