Serhiy Sukhomlyn, who has recently been appointed as head of the Restoration Agency under the Ministry of Infrastructure, has extensive experience implementing energy-efficient and cost-effective projects. He served as the mayor of Zhytomyr for almost 10 years; an earlier report on how the city overcame its Soviet legacy and became a model of energy efficiency under his guidance can be found here.
On his appointment, it is evident that the agency's focus will shift from large-scale construction to more socially oriented and energy-efficient projects. During the interview, he discussed road repairs during the war, social housing projects for internally displaced persons, and the feasibility and cost-effectiveness of trying to restore old infrastructure to its pre-war state.
Let’s start with a hotly debated topic: roads. Expenditure on road construction and repairs during wartime is often criticized, why do we need them during the war?
This is a matter of priorities. Roads in the rear areas can wait. Only those roads specifically requested by the military and deemed necessary by them will be repaired. The same applies to bridges. Currently, the applications for road repairs amount to approximately UAH 4 billion (around $100 million).
The agency oversees many projects, such as the construction of a new water pipeline to Mykolaiv. This project is continuously increasing in cost. What will happen next? Will the agency's previous management be audited?
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I support any audit - not only of the previous team’s activities but also of the current team’s work. If you visit the agency’s website, you’ll find detailed information about the Mykolaiv water pipeline project on an online dashboard. This information is fully open and interactive. You can see when contractor selection procedures were conducted, how much the price has decreased, the total cost of the project, and how the construction is progressing - all of it updated in real time.
Everything we undertake will be presented on similar dashboards to ensure transparency and fairness and to allow for timely responses to any questions or concerns.
Regarding the social housing program: What is its purpose, and why is it necessary?
Let’s just say that the current housing rental conditions in rear area cities are challenging for displaced persons. We need to encourage people to remain in Ukraine. If we fail to do so, they will move to EU countries, where they will be welcomed. People need more affordable rental conditions, which is possible if housing is built by the state and local communities.
Another reason this project is vital is that if you look at today’s economic map of the country, enterprises from Kherson, Mykolaiv, and Kharkiv have relocated to the west or the center of Ukraine. Border and frontline regions have lost their budgets, businesses, and jobs. This project can help redistribute the population, create jobs, and make Ukraine’s economic map more balanced. Where there are people, businesses will follow.
So, housing will be built by the state and cities, owned by cities, and provided to displaced specialists?
Yes. The project model is designed so that the rent for social housing will be significantly lower than the market rate. What’s in it for the communities? They gain new opportunities and people. For example, if a community builds 500 apartments, it gains approximately 1,200 new residents. If those people work, the community also benefits from increased personal income tax contributions to its budget.
How many communities are ready to participate? Where are they from, and how many apartments are planned?
The pilot project plans to build 6,000 to 8,000 apartments, with the first stage targeting 50,000 units. Fifteen communities have already expressed interest and readiness to proceed. These are primarily communities in central Ukraine that have experience implementing similar projects. However, we first need to refine the project model. Communities will need to fulfill their responsibilities, such as allocating land and bringing in utilities.
How and where will social housing blocks be located?
Not blocks - we want them to be integrated. Social apartments will be interspersed within different areas. It’s crucial for people to have a diverse social environment and feel secure. I’ve seen examples abroad. In Spain, there are entire districts of social housing that are often dangerous and intimidating. On the other hand, in London, wealthy areas sometimes include one or two social housing buildings. This approach is more effective. Children from social housing can play alongside those from other families on the same sports or playgrounds, fostering aspirations for a better life.
Clustering social housing in blocks can lead to different outcomes. Additionally, communities will have the autonomy to allocate approximately 25-30 percent of the apartments to specific individuals. For instance, if a hospital lacks a doctor, the community could offer an apartment as an incentive to recruit one.
What about the regional recovery strategy, especially for frontline and occupied regions after the war?
It’s essential to rebuild with a focus on quality and sustainability, drawing from other countries' experiences. For example, I believe we should not restore destroyed coal-fired power plants or large CHPPs [combined heat and power plants] from the 1950s. It’s more efficient to develop decentralized generation using gas-powered piston stations or small, energy-efficient boiler houses, which are also harder to destroy.
We understand that we cannot rely solely on international funding. We need businesses to invest in Ukraine’s recovery. Our job is to facilitate this process. However, businesses will approach large investments cautiously. Many companies might prefer to invest in more stable regions rather than border areas, unless there is some form of insurance.
After the war, Ukraine’s demographic map will likely look very different. The state’s role will be to develop programs to encourage businesses to return to or invest in regions in need.
Will these restoration projects be initiated by communities themselves or international donors?
Many Ukrainian communities can implement specific projects independently with private investments. Donors can assist communities that lack such capacity—typically smaller or frontline ones.
We recognize that international assistance won’t cover all of Ukraine’s recovery needs, but without this support, the situation would be far more challenging. We are grateful for the aid that has addressed many pressing issues.
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