Mechanisms of Investment Support for the Reconstruction of Social Infrastructure of Ukraine (ГРААЛЬ НАУКИ)

Summary

• The article studies mechanisms of investment support for rebuilding Ukraine's social infrastructure in wartime and post-war conditions.p.1
• It argues for an integrated investment management system based on multi-channel financing.p.1
• The main function of investment mechanisms is to identify and bridge the investment gap between reconstruction financing needs and available resources.p.3
• State resources and international donor funds in the form of grants, loans and technical assistance dominate the financing of social infrastructure.p.5
• Local budgets have limited capacity because many war-affected communities lost their revenue base.p.5
• Private investment is linked to public-private partnerships, co-investment and corporate financing.p.5
• The private sector and PPPs remain underused in Ukraine because of high investment risks, long payback periods and institutional constraints.p.7

Key insights

1. Current challenges require systemic management of investment flows integrating state, local, international and private resources rather than selective financing of individual facilities.p.2
2. Existing research focuses on individual financing instruments rather than a coherent system of investment mechanisms.p.2
3. Effective investment depends on the roles and capacity of public authorities, international partners, the private sector and civil society.p.3
4. Debt sources can be complemented by state guarantees or other risk-mitigation tools to raise their attractiveness to lenders.p.5
5. The IFC promotes People-First PPPs and a PPP toolkit for social impact, including post-crisis solutions in health, education and social housing.p.6
6. The OECD stresses clear risk allocation, contract transparency and evaluation of social benefit in PPPs.p.6
7. International practice shows PPPs evolving from a mainly financial instrument into a complex mechanism of social impact.p.7
8. The role of PPPs may grow substantially in post-war recovery, which requires better legislation, lower risks and investor incentives.p.7