A range of serious and expert speakers addressed the issues of Ukrainian Infrastructure Reconstruction. The Embassy of Ukraine opened with three key priorities: ‘Energy resilience and renewable upgrades’, ‘Rebuilding connectivity’ for bridges, rail and logistical communications and ‘Becoming future ready’ – ensuring cities are smart and secure. In general, many speakers addressed the concept of ‘building back better’ where infrastructure is concerned, whether in new renewable technology and network distribution systems, or better planned cities, new construction technologies and upgraded rail systems, not only to match EU standards, but to make Ukraine future proofed against conflict, climate and technological evolution. In short, an upgrade, to make the most of the opportunities to rebuild damaged infrastructure and to evolve the country from old soviet style, heavy and costly energy distribution systems to modern, efficient and lower cost construction and carbon systems.
One of the key issues companies are facing is the ability to plan large infrastructure projects in a timely way, to prepare for a less uncertain times, and to manage the interaction and national connectivity of large projects- such as rail and road systems, that local mayors have control over versus central governments needs. Its not clear who has control to establish the briefs for large projects or evolve the legal frameworks and regulations at this stage. The Government of Ukraine needs to establish its investment priorities clearly. The capability of planning and project management also needs to be addressed to enable rapid and effective delivery on infrastructure. Bechtel flagged this up, and the theme, which was echoed by the panels, including Herbet Smith, Jacobs, Arup and Gleeds, Gensler. More positively, the Mayor of Kharkiv told us of the masterplan that Foster Foundation have developed for future city creation – some of which is already being enacted, with the support of Uk’s DBT. The plan will offer a blueprint for other Ukrainian cities, for planning, smart city development and sustainable, green transport systems.
In the light of planning capability, the private sector is seen as central to capacity and delivering the work, the IFC are investing grants into reconstruction and loans to encourage private sector investment. However, given the planning process takes time (at least 2 years) and the Ukrainian Gov is focused on winning the war, the large Infrastructure projects are still some way off for financial and planning reasons – but now is a good time to start the planning, to prepare supply chains and organise for war ending. The IFC and World Bank estimate at least $500bn of core funding is required to update the infrastructure, of which about $300bn might come from frozen Russian assets, and some Eu, US and UK Government loans, but it’s estimated that about 1/3 of funds should come from the private sector and investors. Dragon capital, Jacobs and BOV group, The City UK addressed the needs of Investors, and what needs to happen- including more stability and certainty, Government guarantees and insurance and clear city planning and project management of large projects and encourage investor confidence. The forum was sponsored by Vantiq, Herbert Smith Freehills, Asters and organised by Strategy Council.