Protection of Ukraine’s energy facilities is incomplete: auditors reveal large-scale violations
16 October 12:33
The Accounting Chamber of Ukraine has released the results of an audit of the state program to strengthen energy infrastructure, designed to protect energy facilities from Russian attacks. The audit showed that most of the fortifications remained unfinished, and the project management system was ineffective. This was reported by "Komersant Ukrainian" with reference to the Accounting Chamber.
The war has shown the weaknesses of the power system
Since the beginning of the full-scale aggression, Russia has been systematically attacking Ukraine’s energy infrastructure – from power substations to generation facilities. This leads to power outages, energy shortages, and prolonged blackouts.
To minimize the risks, in 2023-2024, the government implemented a pilot project to build, reconstruct, and strengthen energy facilities. The State Agency for the Restoration and Development of Infrastructure of Ukraine was appointed as the coordinator and executor.
Billions – but partial results
UAH 35.9 billion was envisaged for the program, almost UAH 30 billion was actually received, but only UAH 18.71 billion was used.
The auditors note that despite the existence of a regulatory framework, project management was ineffective. There were no clear performance indicators, scope of work, or required resources. The monitoring and reporting system was imperfect.
“The project was implemented according to a simplified “design-build” procedure, which does not have proper legislative regulation. The approach, where the functions of ensuring design, expertise and author’s supervision are assigned directly to the contractor, significantly reduced the level of transparency and competition,” the report says.
Through this system, procurement was carried out directly, without open bidding.
Despite the simplified procedures, as of the end of 2024, work on the protection of critical infrastructure remained incomplete, and most of the fortifications were unfinished.
Fortifications are not ready
At the end of 2024, the level of readiness of drone defenses was less than 75%, and missile defense fortifications was less than 25%.
The audit also revealed the following consequences of insufficient control by the customers – the Recovery and Development Services in the following areas
- overstatement of the contract price;
- overstatement of the type, scope and cost of work;
- failure to recognize the amount of debt obligations in the accounting.
Inexperienced contractors and lack of control system
The Recovery Agency, according to the auditors, is not a specialized body in the field of energy protection and does not have the relevant experience.
The situation is the same at the level of regional services and contractors, who actually worked without professional expertise.
Recommendations to the Government
The Accounting Chamber made a number of recommendations:
- To theGovernment – to develop clear rules for the implementation of pilot projects, their purpose, reporting requirements and performance evaluation.
- To theMinistry of Development – to update the estimate norms, clarify the procedure for forming contract prices and control over payment for work.
- The Reconstruction Agency is to create a mechanism for analyzing prices for materials, complete the projects that have been started and hand them over to critical infrastructure operators.
Regional services have also been instructed to adjust overestimates.
Some violations have already been corrected
The audit helped to correct some errors: the cost of the work was reduced by UAH 2.38 million and the contract price by UAH 27.5 million. In addition, part of the humanitarian aid that remained unused was returned to the state’s balance sheet.
The next stage – taking into account mistakes
The auditors emphasized that during the implementation of the new project, approved by Government Resolution No. 142 of February 7, 2025, all shortcomings must be taken into account to avoid repeating systemic errors.
