Funds unused, protection incomplete: The Accounts Chamber has identified significant violations in the implementation of the energy infrastructure protection project.

The Accounting Chamber of Ukraine has released the results of its audit of a pilot project to protect critical infrastructure in the fuel and energy sector. The audit identified numerous deficiencies, ineffective use, and delays in completing the work.

The department’s press service reported this. 

According to the report, UAH 35.9 billion was allocated for the project’s implementation in 2023-2024; UAH 29.97 billion was actually received, but only UAH 18.71 billion was used.

The audit found that drone defenses were less than three-quarters of their planned capacity, and missile defense fortifications were less than a quarter.

The Accounts Chamber noted that the State Renewal Agency, which coordinated the project, lacked sufficient experience in protecting energy facilities. Similar problems were also identified in regional renewal services and among contractors.

Furthermore, the project was implemented using the simplified “design-build” procedure, which lacks legislative regulation. Therefore, procurement was carried out without open bidding, through direct contracts, which reduced transparency and competition.

“Despite simplified procedures, by the end of 2024, the majority of fortification structures remained unfinished,” the Accounts Chamber report states.

Auditors also recorded inflated costs for work, volumes, and types of services, and that some international aid was unused.

Following the audit, the Accounts Chamber provided the government and the Agency with a number of recommendations to improve the efficiency of fund management and strengthen oversight of work performance.