Transparent reconstruction: digital solutions from Ukraine and the Republic of Korea

The recovery process is determined not only by the level of infrastructure changes, but also by the degree of transparency and openness that accompanies this journey. These aspects play a crucial role in shaping sustainable development by promoting public trust and engagement, efficient use of resources, and prevention of corruption.

One example of a successful global experience of recovery was South Korea after the war with North Korea in 1950-1953. To improve efficiency, effectiveness and accountability in the public construction sector, the Seoul Metropolitan Government created the Anti-Corruption Transparent Construction System, which displays all reconstruction processes in real time.

This year, Ukraine launched the DREAM electronic ecosystem, which is also designed to ensure transparency in reconstruction. Recently, representatives of the systems of Ukraine and South Korea discussed key aspects of their functioning and shared their experience in implementing digital solutions.

You can watch the recording of the event here.

What do the systems have in common, what is the context of their creation, and what issues do they address?

Context of creation

Clean Construction System

South Korea was devastated by the war with North Korea, which lasted from 1950 to 1953. In fact, it was dependent on financial aid from other countries. In just over 50 years, it has become one of the most developed countries in the world. However, this growth was accompanied by tragic events related to the inadequate construction process.

For example, due to the lack of a reliable monitoring system to prevent improper construction, the Sampoong department store collapsed in 1995 due to illegal land use, project modifications and expansion. That day, 502 people died and about 1,000 were injured – until the 11 September 2001 terrorist attack in the United States, this was considered the largest disaster in terms of casualties.

Recognising that effective and transparent management of the public construction sector is directly linked to the lives of citizens, the Seoul Municipal Government has begun to work on finding a systematic solution to the problems created by improper construction. To this end, the Clean Construction System was established to combat corruption.

Kim Seung-op, representative of BORIM, which is a partner in the implementation of the Clean Construction System project, noted that the system’s stages were created over 7 months, with another 3-4 months spent testing and training the target audience.

DREAM

As of 1 September 2023, the total amount of direct documented damage to Ukraine’s infrastructure caused by Russia’s full-scale invasion is about $151.2 billion (at replacement cost). In total, 167,200 residential buildings have been destroyed or damaged as a result of the hostilities. According to the Rapid Damage and Needs Assessment (RDNA 2), the total reconstruction needs in Ukraine amount to $411 billion.

Reconstruction of Ukraine is a long-term and complex process that has two main areas: restoration of critical infrastructure and modernisation. It involves tens of thousands of projects that will take place simultaneously at different stages and in all parts of the country.

In order to systematise project data, key documentation, funding sources, procurement, payment and performance data, Ukraine is implementing the state electronic reconstruction management ecosystem (DREAM).

Problems and solutions

Clean Construction System

The anti-corruption system of transparent construction improves the efficiency of the construction business in an innovative way and ensures transparency on construction sites. Previously, the process of editing and storing a large number of documents that were created in a written reporting format was carried out. However, the system allows you to register/upload, edit and save various electronic documents directly on the server, eliminating unnecessary paperwork.

Clean Construction System allows you to check the status of construction, materials and worker activities in real time, facilitating systematic workflow management. In other words, the supervisor, construction company and inspection team log in to the system to register business status, process report, data management, safety management, and construction personnel continue to exchange information with each other. With this system, all personnel are seamlessly connected into a single system, allowing for real-time response to accidents and improved construction quality.

DREAM

The DREAM system records and monitors all stages of reconstruction projects, including damage registration, financing, procurement of materials and services, construction works and commissioning of facilities. DREAM allows you to see in real time how houses, roads, oblasts and regions are being rebuilt using a large amount of open data. Construction participants (customers, contractors and regulatory authorities) upload documents to the system and record every step of the reconstruction process.

All this information is available to the public and donors in the format of convenient tables and graphs in the public analytics module https://bi.dream.gov.ua/. Open data allows, among other things, to compare different projects and facilities, assess their progress and make decisions on investments.

In this way, the ecosystem also provides an anti-corruption function, allowing everyone to monitor the recovery process, prevent and report possible violations.

Viktor Nestulia, Open Contracting Partnership, Head of the DREAM Project Office, said that the ecosystem currently has information on more than 1400 recovery projects. The ecosystem integrates data from 9 state IT systems and solutions (for example, the Register of Damaged and Destroyed Property, the Unified State Electronic System in the Field of Construction, PROZORRO, etc.), which allows for a single digital route for the implementation of a restoration project.

“When we were working on the DREAM concept, we were inspired, in particular, by the experience of the Clean Construction System. Our ecosystem provides an opportunity to see the entire process of restoring facilities through a single window. We are currently working in an experimental mode, but step by step we are moving towards the realisation of our vision. As a result, the system should become a useful and effective tool for both Ukrainian citizens and international partners of the reconstruction,” said Viktor Nestulia.

This material was prepared by the Institute for Analytics and Advocacy as part of its activity implemented under the USAID/ENGAGE activity, which is funded by the United States Agency for International Development (USAID) and implemented by Pact. The contents are the sole responsibility of Pact and its partners and do not necessary reflect the views of USAID or the United States Government.