Communities of Ukraine will be able to receive funds for recovery from the State Fund for Regional Development
Starting from September 1, the communities of Ukraine will have the opportunity to submit applications for financing reconstruction projects at the expense of the State Fund for Regional Development (SFRD). This year, 1 billion hryvnias have been earmarked for these purposes in the State Budget. The fund resumed work after a three-year break caused by a full-scale war, reports the press service of the Ministry of Community and Territorial Development of Ukraine.
“We are glad that we are returning to the functioning of the State Fund for Regional Development. Today, our priority is the frontline communities, but other regions will be able to receive support as well. We strive to make the project selection process as open and transparent as possible, so that the funds are used effectively for the reconstruction of our communities, Deputy Minister of Development of Communities and Territories of Ukraine Oleksiy Ryabikin said at the briefing.
DFRR is a special fund, funds from which are directed to the development of regions. They are used to implement infrastructure projects that contribute to the restoration of communities and regions.
Implementation will take place within the transitional model of public investment management. Communities that are not in the zone of active hostilities will be able to submit applications from September 1 to 10. This will be done through the DREAM digital platform — the only state bank of projects and programs that allows tracking the status of their implementation.
The cost of one project should not exceed UAH 50 million, and they should be completed by the end of 2025. Funds that communities will receive from the DFRD will be provided in the form of a subvention. If the subvention is not used within a year, it will be returned to the state budget.
Several thousand community projects that can claim this support are already registered in the system. After the submission of applications is completed, the selection process will begin on September 10, which should be transparent and accountable, with the broad involvement of communities and regions.
“The Ministry of Development has already demonstrated this approach in the selection of projects within the framework of the Ukraine recovery program, where 100 million euros were allocated. We have involved all communities, all regional state administrations, as well as experts, the public and various ministries to ensure complete transparency and openness of the selection, Oleksiy Ryabikin emphasizes.
To qualify for funding, communities must meet four main conditions when preparing an application. First, the project must correspond to the general strategy of regional development. Secondly, the object that is planned for restoration must belong to the state or the community. Thirdly, project documentation must be prepared in accordance with established requirements. And finally, the local budget must provide at least 10% of the total cost of the project.
According to the Budget Declaration for 2026-2028, starting next year, the FDRR has allocated UAH 90 billion for three years — UAH 30 billion each year. Thus, this year’s transparent and effective use of the funds of the fund will be a kind of pilot stage and preparation for larger-scale work with public investments in the near future.
