PUBLIC PROCUREMENT FOR THE RENOVATION OF UKRAINE'S INFRASTRUCTURE: RISKS OF STATE REGULATION AND OPPORTUNITIES FOR FOREIGN BUSINESS
Authors: SMENTYNA N.V. , FIALKOVSKA A.A. 
Published: March 2024

Topicality. The military invasion of the russian federation caused considerable damage to the Ukraine’s economy, in particular due to the damage and destruction of infrastructure facilities. Among the state priorities is their restoration according to the principle of "we will rebuild better", using the limited financial resources of the state or the funds raised by international donors as efficiently as possible, transparently and without elements of corruption, which becomes possible due to a transparent and efficient public procurement system. The study of the transparency and specificity of procurement in the state under martial law is particularly relevant.Aim and tasks. To carry out an analysis of procurement activities in Ukraine and to highlight the peculiarities of public procurement for the reconstruction of Ukraine's infrastructure under martial law, to identify problematic aspects of the implementation of procurement procedures in the context of the tools of state regulation, and to develop proposals for improving the procurement process and creating opportunities for foreign businesses to participate in the reconstruction of Ukrainian cities.Materials and Methods. The results of comparative analysis, theoretical generalization of scientific approaches to the implementation of procurement activities in the conditions of martial law. The material and methodical base of the study is formed by official statistical data on purchases in the Prozorro system.Research results. The main results of state regulation of procurement activities under martial law are relaxation of a number of restrictions for purchasers and creation of opportunities to purchase goods, works, services for budget funds without the Prozorro system. For its part, it created the basis for irresponsible attitude of customers to the tender process and weakening of competition on the part of participants and led to a number of corruption risks. The opportunities provided to the customer affected the number of procurement procedures in the system, competition among participants in view of the authorization of procurement with an offer from only one participant, instead of a minimum of two, as before, and the efficiency of spending budget funds. Ukraine has many partners who are ready to join the reconstruction of our state. At the same time, a high-quality long-term partnership requires coordinated interaction between authorities at different levels, a high level of professionalism in the implementation of reforms, and transparency in spending funds.Conclusion. The results of the conducted research form the basis for the need to strengthen the strategic role of public procurement in the restoration of state infrastructure. In the context of infrastructure restoration, the public procurement strategy at various levels of the administrative-territorial system of Ukraine should be an effective tool, one of the priorities of which may be to increase the level of involvement of international business in public procurement for the restoration of the infrastructure of the state and its individual territorial units, taking into account their characteristics.