About the Project

Reform of Municipal Services in Eastern Ukraine *

Commissioned by: Federal Ministry for Economic Cooperation and Development (BMZ)

Partner: Ministry of Regional Development, Construction, Housing and Communal Services of Ukraine

Current project phase: 2010 – 09.2017

Budget: EUR 9 million

The Reform of Municipal Services in Eastern Ukraine Project is being implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on the basis of the official agreement between the Ukrainian and German governments.


The local self-governments and state authorities apply the improved tools and procedures to provide the municipal services in a more effective and sustainable way.


Ukraine’s administrative structures remain highly centralised, and at the same time, the local service provision is not customer-oriented. It inflicts major challenges in Eastern Ukraine, where local communities had to take in persons internally displaced due to persisted heavy fighting in the easternmost part of the country. With the new government, decentralisation and the implementation of public administration reforms took on a great significance at the beginning of 2014.


The local self-governments obtain support in improving their services provided, inter alia, via Centres for Administrative Services, or when dealing with selected public utility services. Participation of municipalities‘ employees in trainings and networking between cities contributes to experience exchanging and adopting of best practices by other municipalities. Intensified inter-municipal cooperation allows the communities to share the available resources and use them more efficiently.


Sustainable results have been achieved with the administrative service reforms. Fifteen Centres for Administrative Services were equipped and provided advisory support. In Eastern Ukraine, 600,000 citizens now benefit from more efficient municipal services. Ten Centres for Administrative Services are being established in the voluntarily amalgamated communities. With the support of the project, the laws aimed at decentralisation and optimisation of administrative service delivery procedures have been developed and adopted.

The inter-municipal cooperation (IMC) concept has been adopted as a law. Seven IMC projects are resulting in annual savings of EUR 250,000 for 30 cooperating communities. The comprehensive sub-regional strategy for solid household waste management has been elaborated and is now being implemented in Poltava Oblast.

Municipal water utilities** are now developing their business plans in line with EU standards. Participating water utilities are now able to present transparent and economically viable project proposals to financial institutions. By doing this, one municipal utility acquired a loan of EUR 20 million from the European Bank for Reconstruction and Development (EBRD) and the Nordic Environment Finance Corporation (NEFCO).

* Within the period from 2009 to 2013 the project name was ‘Improvement of Municipal Services’

** Consultation services related to water supply, sanitation and waste management were provided by a sub-contractor – GFA Consulting Group GmbH. The Public Utility component has phased out on 31 May 2016. For further information about the results and products, please follow the link: http://ims-ukraine.org/en/public-utilities