MONITORING OF THE PROCESS OF POWER DECENTRALIZATION AND LOCAL GOVERNANCE REFORM as of August 15, 2017

1. MONITORING
OF THE PROCESS OF POWER DECENTRALISATION
AND LOCAL GOVERNANCE REFORM
AUGUST 2017

2. MONITORING OF THE PROCESS OF POWER DECENTRALISATION IN UKRAINE
2
№ KEY INDICATORS Responsible Slide
1 Dynamics of ATCs forming Minregion 3,4
2 Rating of the oblasts in terms of ATCs forming Minregion 5,6
3 Cooperation between territorial communities Minregion 7
4 Results of financial decentralisation Minregion 8-13
4.1 Growth of local budgets (2014 – 2017) Minregion 8
4.2 Local budget revenues Minregion 9,10
4.3 Local budget expenditures Minregion 11,12
4.4 Remaining funds of local budgets, deposited funds Minregion 13
5 Infrastructure support Minregion 14-16
5.1 Dynamics of state support for regional development and construction of infrastructure Minregion 14
5.2
Status of subvention allocation from the State Budget to local budgets for development of
infrastructure of amalgamated territorial communities
Minregion 15
5.3 Status of distribution of State Fund for Regional Development between projects Minregion 16
6 Decentralisation in education MoE 17
7 Decentralisation in health care, creating hospital districts MoH 17
8
Decentralisation of powers in architectural construction control and improvement of urban
development law
Minregion, State
Architectural-
Construction Inspection
19
9 Decentralisation in administrative services provision
Ministry of Economic
Development
20

3. 3
INDICATOR 1
616
amalgamated
territorial
communities were
formed
Out of those
203
are waiting for the
Central Election
Committee to set first
elections
MINREGION:MINREGION:
DYNAMICS OF FORMING AMALGAMATED TERRITORIAL COMMUNITIESDYNAMICS OF FORMING AMALGAMATED TERRITORIAL COMMUNITIES
Hromadas in the process of amalgamation
Waiting for Central Election Committee decision on setting first elections
First elections were held in 2017

4. INDICATOR 1
MINREGION:MINREGION:
DYNAMICS OF FORMING AMALGAMATED TERRITORIAL COMMUNITIESDYNAMICS OF FORMING AMALGAMATED TERRITORIAL COMMUNITIES
4
in 2015 - 2017
amalgamated territorial communities
were formed (out of those 203 in CEC)
616
NUMBER OF AMALGAMATED COMMUNITIES THAT HELD THEIR FIRST ELECTIONS
NUMBER OF TERRITORIAL COMMUNITIES WHICH CREATED AMALGAMATED TERRITORIAL COMMUNITIES
NUMBER OF RESIDENTS IN AMALGAMATED TERRITORIAL COMMUNITIES
In 2015 - 2017
Territorial communities amalgamated into 587 ATCs (25 % of the total number of the basic level councils as of 01.01.2015)
2888
number of residents in amalgamated territorial communities (15.9 % of the total population of Ukraine)
6 700
820

5. INDICATOR 2
MINREGION: RATING OF THE OBLASTS IN TERMS OF ATCs FORMING
OVERALL RATING AND PLACE BY PARAMETERS as of 11.08.17
5
Place of the oblast
in overall rating
Note: when calculating the rating by parameters "Number of
ATCs“ and "Communities which amalgamated" the data of
those communities was accounted for, which documents were
in CEC as of 11.08.2017 for setting first elections.

6. INDICATOR 2
MINREGION: RATING OF THE OBLASTS IN TERMS OF ATCs FORMING
OVERALL RATING AND PLACE BY PARAMETERS as of 11.08.17
6
VINNYTSIA
VOLYN
DNIPROPETROVSK
DONETSK
ZHYTOMYR
ZAKARPATTIA
ZAPORIZHZHIA
IVANO-FRANKIVSK
KYIV
KIROVOHRAD
LUHANSK
LVIV
MYKOLAIV
ODESSA
POLTAVA
RIVNE
SUMY
TERNOPIL
KHARKIV
KHERSON
KHMELNYTSKYI
CHERKASY
CHERNIVTSI
CHERNIHIV
TOTAL
Note: when calculating the rating by parameters "Number of ATCs“ and "Communities which amalgamated" the data of those communities was accounted for,
which documents were in CEC as of 11.08.2017 for setting first elections.

7. 435territorial communities are using
tools for intermunicipal
cooperation
INDICATOR 3MINREGION: COOPERATION BETWEEN TERRITORIAL COMMUNITIESMINREGION: COOPERATION BETWEEN TERRITORIAL COMMUNITIES
STATUS OF CONCLUDING INTERMUNICIPAL COOPERATIONSTATUS OF CONCLUDING INTERMUNICIPAL COOPERATION AGREEMENTS
7
90intermunicipal
cooperation agreements
4
Number of territorial communities that
used the tools of intermunicipal
cooperation
(1) Number of intermunicipal cooperation
agreements
AREAS OF
IMPLEMENTATION OF
INTERMUNICIPAL
COOPERATION
AGREEMENTS
32
13
7
19
19
Housing and utilities
Urban land development
Fire safety
Education, health care, social
care
Other

8. 68.6 98.2
146.6
170.7
(forecast)
+29.6
(42%)
+48.4
(49%)
+24
(16%)
102.8
(fact 7 months)
60% of fact
revenues
compared to
forecast
INDICATOR 4.1MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
GROWTH OF THE LOCAL BUDGETS (2014 – 2017)GROWTH OF THE LOCAL BUDGETS (2014 – 2017)
8

9. Own revenues in January-July 2017, as compared to
January-July 2016,
bln UAH
77.8
102.8+25.0
(32%)
2.5
4.7
+2.2
(almost doubled)
2016 2017 2016 2017
Ukraine 366 ATCs
INDICATOR 4.2MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
LOCAL BUDGET REVENUES (2014 – 2017)LOCAL BUDGET REVENUES (2014 – 2017)
9

10. Administrative services fee growth
rate in January-July 2017 as
compared to January-July 2016 (by
budget levels), in % and mln UAH
INDICATOR 4.2MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
LOCAL BUDGET REVENUES, GROWTH RATELOCAL BUDGET REVENUES, GROWTH RATE
10
single tax property tax
Cities of oblast
significance
Local budgets of Ukraine, total Budgets of the cities of oblast significance

11. %
-8.6% -7.0%
+1.1%
%
-2.9% -3.2% -1.5%
Dynamics of relative share of payroll expenditures in local budgets in January-
June 2016 and 2017
(excluding subventions for payment of benefits and subsidies)
Dynamics of relative share of energy expenditures in local budgets
in January-June 2016 and 2017
(excluding subventions for payment of benefits and subsidies)
2016
2017
INDICATOR 4.3
MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
LOCAL BUDGET EXPENDITURES. DYNAMICS OF RELATIVE SHARE OF SOME EXPENDITURESLOCAL BUDGET EXPENDITURES. DYNAMICS OF RELATIVE SHARE OF SOME EXPENDITURES
11
Note: relative share of payroll expenditures in local budgets
of Ukraine, in particular, in cities of oblast significance
budgets, decreased in the amount of overall expenditures of
the local budgets. In ATCs relative share of payroll
expenditures slightly increased due to expansion of LSG
powers.
Note: relative share of energy expenditures in local budgets
of Ukraine, in particular, in cities of oblast significance
budgets, decreased due to changes in state-owned
infrastructure financing system and implementation of
energy effective measures focused on energy saving,
development of renewable energy sources and alternative
fuel.

12. Development budget expenditures per capita
in January-June 2016 and 2017, UAH
грн.
+72.2% +71.3%
by 3.3 times
Share of expenditures of development budget
in special fund of local budgets
in January-June 2016 and 2017, %
2017
2016
INDICATOR 4.3MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
LOCAL BUDGET EXPENDITURESLOCAL BUDGET EXPENDITURES. SHARE OF EXPENDITURES OF DEVELOPMENT BUDGET. SHARE OF EXPENDITURES OF DEVELOPMENT BUDGET
12

13. Remaining funds of the general fund of local budgets
of Ukraine, bln UAH
+14.9
(+44.3%)
Remaining funds of the general fund of the budgets
of the cities of oblast significance, bln UAH
+4.4
(+47.8%)
Remaining funds of the general fund of the budgets
of 366 ATCs, bln UAH
+0.4
(+23.5%)
01.01.2017
01.01.2017 01.07.2017
01.07.2017
Treasury accounts
Deposit accounts
INDICATOR 4.4MINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATIONMINREGION, MINFIN: RESULTS OF FIANACIAL DECENTRALISATION
REMAINING FUNDS OF LOCAL BUDGETS, DEPOSITED FUNDS
13

14. INDICATOR 5.1
MINREGION, MINFIN: INFRASTRUCTURE SUPPORTMINREGION, MINFIN: INFRASTRUCTURE SUPPORT
DYNAMICS OF STATE SUPPORT FOR COMMUNITY DEVELOPMENT AND CONSTRUCTION
OF INFRASTRUCTURE
14
0.5
bln UAH
3.7
bln UAH
7.3
bln UAH
14.9
bln UAH
state support for
territorial community
development and
construction of their
infrastructure increased
by 30 times

15. No. Oblast
Передбачено
коштів,
тис. грн
Projects approved by Minregion
Number
Amount,
thous.UAH
% of the
provisioned
subvention
sum
1 Vinnytsia
Volyn
Dnipropetrovsk
Donetsk
Zhytomyr
Zakarpattia
Zaporizhzhia
Ivano-frankivsk
Kyiv
Kirovohrad
Luhansk
Lviv
Mykolaiv
Odessa
Poltava
Rivne
Sumy
Ternopil
Kharkiv
Kherson
Khmelnytskyi
Cherkasy
Chernivtsi
Chernihiv
45705,60 31 27675,1 61
2 50122,90 55 24893,0 50
3 135017,00 71 77633,0 57
4 41845,90 20 39675,8 95
5 155132,40 39 39679,4 26
6 14551,80 20 14551,8 100
7 70918,80 41 34510,7 49
8 43224,10 78 40497,0 94
9 6075,30 0 0,0 -
10 19178,90 11 13156,6 69
11 16167,90 2 9680,1 60
12 63497,20 78 42868,2 68
13 90567,00 0 0,0 -
14 53017,20 17 21235,6 40
15 59161,90 18 23200,1 39
16 64265,90 20 15711,9 24
17 54607,40 39 35474,6 65
18 115491,20 44 36364,6 31
19 17654,00 1 1033,8 6
20 52113,80 2 13037,7 25
21 167031,20 74 56653,0 34
22 17910,70 21 12653,8 71
23 61935,90 59 43219,8 70
24 84806,00 7 10881,6 13
TOTAL: 1 500 000,00 748 634 287,14 42,3
165ATCs out of 366
established in
2015-2016
748infrastructure projects
634mln UAH
INDICATOR 5.2
MINREGION: INFRASTRUCTURE SUPPORTMINREGION: INFRASTRUCTURE SUPPORT
STATUS OF SUBVENTION ALLOCATION FOR INFRASTRUCTURE OF ATCs TO THE PROJECTS
15

16. 3,5
bln UAH
No. Region
Provisioned for project
implementation, thous. UAH
Remaining
undistribut
ed funds,
mln UAH
Percent of
the
remaining
undistribut
ed funds,
%
Total
including
SFRD funds
local budget
funds
1 Vinnytsia 238, 996 172, 989 66, 006 4, 877 2,8
2 Volyn 124, 535 113, 128 11, 406 0,000 0,0
3 Dnipropetrovsk 237, 419 212, 628 24, 791 0,000 0,0
4 Donetsk 312, 869 279, 137 33, 731 0, 612 0,2
5 Zhytomyr 203, 983 134, 971 69, 012 0, 350 0,3
6 Zakarpattia 178, 220 136, 726 41, 493 0,000 0,0
7 Zaporizhzhia 128, 720 114, 501 14, 219 22, 900 20,0
8 Ivano-Frankivsk 172, 461 149, 822 22, 638 0,000 0,0
9 Kyiv 170, 512 113, 932 56, 579 0,000 0,0
10 Kirovohrad 69, 958 63, 599 6, 359 0,000 0,0
11 Luhansk 241, 939 238, 543 3, 395 10, 340 4,3
12 Lviv 230, 451 166, 561 63, 889 0,000 0,0
13 Mykolaiv 91, 078 75, 692 15, 385 17, 036 22,5
14 Odessa 208, 899 156, 838 52, 060 29, 141 18,6
15 Poltava 174, 082 93, 889 80, 193 20, 000 21,3
16 Rivne 147, 797 126, 104 21, 693 0,000 0,0
17 Sumy 174, 385 120, 089 54, 295 0, 113 0,1
18 Ternopil 138, 275 115, 198 23, 076 0,000 0,0
19 Kharkiv 204, 177 177, 708 26, 469 0,000 0,0
20 Kherson 149, 016 114, 753 34, 263 4, 305 3,8
21 Khmelnytskyi 188, 679 139, 812 48, 867 0,000 0,0
22 Cherkasy 118, 627 81, 135 37, 491 0,000 0,0
23 Chernivtsi 105, 985 98, 655 7, 330 0,000 0,0
24 Chernihiv 123, 696 112, 553 11, 143 11, 541 10,3
25 Kyiv city 351, 807 191, 025 160, 781 9, 281 4,9
TOTAL 4 486, 577 3 500, 000 986, 577 130, 499 3,7
Percentage of SFRD funds distributed between projects, %
Provisioned SFRD
funds in 2017
INDICATOR 5.3
MINREGION: INFRASTRUCTURE SUPPORTMINREGION: INFRASTRUCTURE SUPPORT
STATUS OF DISTRIBUTION OF STATE FUND FOR REGIONAL DEVELOPMENT (SFRD) BETWEEN
PROJECTS as of 11.08.2017as of 11.08.2017
16

17. INDICATOR 6
MoE: DECENTRALISATION IN EDUCATIONMoE: DECENTRALISATION IN EDUCATION
ESTABLISHMENT OF HUB SCHOOLS IN THE OBLASTS, INCLUDING IN ATCsESTABLISHMENT OF HUB SCHOOLS IN THE OBLASTS, INCLUDING IN ATCs
17
24.3
thous.
pupils are taken to
schools by bus
577
school buses (extra
need – 190)
24.3
thous.
roads have been
repaired, more 4.5
thous. km need to be
repaired
323
out of 338
(95.6%) hub schools
have architectural
accessibility
338
hub schools have
been established,
out of those 96 in
ATCs
4 Number of hub schools in the oblast
(1) Number of hub schools in ATCs
300
mln UAH
is provisioned in 2017
for establishment of
school districts

18. INDICATOR 7MoH: DECENTRALISATION IN HEALTH CAREMoH: DECENTRALISATION IN HEALTH CARE
CREATING HOSPITAL DISTRICTS IN THE OBLASTSCREATING HOSPITAL DISTRICTS IN THE OBLASTS
18
4 Oblasts where hospital districts were created and
their number
Oblasts where hospital districts haven’t been
created
60hospital districts
in 16oblasts

19. No. Oblast
Number of LSGs, which received powers in architecture and construction
control
Cities
of
oblast
signific
ance
ATCs
Cities of
oblast
significance
Cities of rayon
significance
with
population of
50 thous. and
more
Village,
settlement
councils and
city councils
with
population
below 50
thous.
Total
LSG
Includi
ng
ATCs
1 Vinnytsia 6 24 1 2 3 1
2 Volyn 4 20 1 1
3 Dnipropetrovsk 13 34 1 4 3 8 2
4 Donetsk 27 7 1 5 1 7 1
5 Zhytomyr 5 32 1 1 1 3 1
6 Zakarpattia 5 5 1 1
7 Zaporizhzhia 5 24 1 1
8 Ivano-Frankivsk 6 12 1 2 2 5
9 Kyiv 13 2 4 10 14
10 Kirovohrad 4 7 1 1
11 Luhansk 14 4 1 1
12 Lviv 9 25 1 1 2 4
13 Mykolaiv 5 20 1 1
14 Odessa 7 12 1 1 4 6 2
15 Poltava 6 20 2 2 4
16 Rivne 4 19 1 1
17 Sumy 7 18 1 1 2
18 Ternopil 4 36 1 1
19 Kharkiv 7 5 1 3 4
20 Kherson 4 14 1 2
21 Khmelnytskyi 6 26 1 1 4 5
22 Cherkasy 6 10 1 1 2
23 Chernivtsi 2 18 1 1 2 1
24 Chernihiv 4 19 1 1
25 Kyiv city 1 1 1
TOTAL
173 413 21 24 36 81 8
out of
587
LSGs within Kyiv
city, oblast (cities of
oblast significance
and ATCs)
Only 81
LSGs
were delegated powers in
architecture and
construction control
Incl. 8 ATCs
were delegated powers in
architecture and
construction control
INDICATOR 8MINREGION, SACI: DECENTRALISATION IN ARCHITECTURE CONTROLMINREGION, SACI: DECENTRALISATION IN ARCHITECTURE CONTROL
TRANSFER OF POWERS TO AMALGAMATED TERRITORIAL COMMUNITIES
19
Oblast centres which received powers Oblast centres which didn’t
Note: oblast centres and cities of rayon significance with population over 50 thous. persons received powers for construction objects with modest (СС1) and medium (CC2) consequence classes. Village, settlement and city councils with population
below 50 thous. persons have powers for construction objects with modest (СС1) consequence classes.

20. INDICATOR 9
MINISTRY OF ECONOMIC DEVELOPMENT:MINISTRY OF ECONOMIC DEVELOPMENT:
DECENTRALISATION IN ADMINISTRATIVE SERVICES PROVISIONDECENTRALISATION IN ADMINISTRATIVE SERVICES PROVISION
20
During the first half of
2017:
+30new centres and regional
subdivisions, including
21 new CASPs in ATCs
44CASPs
already
operate in
ATCs
713Centres for
administrative
services provision
Distribution of CASPs
between authorities which established
them
713
464 rayon state administrations
63 cities, oblast centres and Kyiv city
133 cities of oblast significance
53 other LSGs (including 44 in ATCs)