The role of the Donetsk oblast construction sector in renovation of the territories
The state of the construction industry in Donetsk Oblast is assessed, in particular, the damage to infrastructure facilities that were destroyed as a result of armed conflict in Donbas are analyzed. The amounts of completed construction work by types of construction products in the cities and distri...
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Tochonov, I. Kalashnikova, T. Hordiienko, V. 2018-03-06T16:02:36Z 2018-03-06T16:02:36Z 2017 The role of the Donetsk oblast construction sector in renovation of the territories / I. Tochonov, T. Kalashnikova, V. Hordiienko // Економічний вісник Донбасу. — 2017. — № 4 (50). — С. 5-9. — Бібліогр.: 11 назв. — англ. 1817-3772 https://nasplib.isofts.kiev.ua/handle/123456789/130895 338.2:69.009(477.62) The state of the construction industry in Donetsk Oblast is assessed, in particular, the damage to infrastructure facilities that were destroyed as a result of armed conflict in Donbas are analyzed. The amounts of completed construction work by types of construction products in the cities and districts (raions) of Donetsk Oblast are analyzed. Proposals on the development of the construction industry in Donetsk Oblast in the issues of solving the housing problems of the population are given. Оцінено стан будівельної галузі Донецької області, зокрема проаналізовано пошкоджені об’єкти інфраструктури, які були зруйновані внаслідок воєнних дій на Донбасі. Проаналізовано обсяги виконаних будівельних робіт за видами будівельної продукції по містах та районах Донецької області. Надано пропозиції щодо розвитку будівельної галузі Донецької області в питаннях вирішення житлових проблем населення. Оценено состояние строительной отрасли Донецкой области, в частности проанализированы поврежденные объекты инфраструктуры, которые были разрушены в результате военных действий на Донбассе. Проанализированы объемы выполненных строительных работ по видам строительной продукции по городам и районам Донецкой области. Даны предложения по развитию строительной отрасли Донецкой области в вопросах решения жилищных проблем населения. en Інститут економіки промисловості НАН України Економічний вісник Донбасу Social and economic problems of Donbas The role of the Donetsk oblast construction sector in renovation of the territories Роль будівельної галузі Донецького регіону в питаннях відновлення територій Роль строительной отрасли Донецкого региона в вопросах восстановления территорий Article published earlier |
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Digital Library of Periodicals of National Academy of Sciences of Ukraine |
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| title |
The role of the Donetsk oblast construction sector in renovation of the territories |
| spellingShingle |
The role of the Donetsk oblast construction sector in renovation of the territories Tochonov, I. Kalashnikova, T. Hordiienko, V. Social and economic problems of Donbas |
| title_short |
The role of the Donetsk oblast construction sector in renovation of the territories |
| title_full |
The role of the Donetsk oblast construction sector in renovation of the territories |
| title_fullStr |
The role of the Donetsk oblast construction sector in renovation of the territories |
| title_full_unstemmed |
The role of the Donetsk oblast construction sector in renovation of the territories |
| title_sort |
role of the donetsk oblast construction sector in renovation of the territories |
| author |
Tochonov, I. Kalashnikova, T. Hordiienko, V. |
| author_facet |
Tochonov, I. Kalashnikova, T. Hordiienko, V. |
| topic |
Social and economic problems of Donbas |
| topic_facet |
Social and economic problems of Donbas |
| publishDate |
2017 |
| language |
English |
| container_title |
Економічний вісник Донбасу |
| publisher |
Інститут економіки промисловості НАН України |
| format |
Article |
| title_alt |
Роль будівельної галузі Донецького регіону в питаннях відновлення територій Роль строительной отрасли Донецкого региона в вопросах восстановления территорий |
| description |
The state of the construction industry in Donetsk Oblast is assessed, in particular, the damage to infrastructure facilities that were destroyed as a result of armed conflict in Donbas are analyzed. The amounts of completed construction work by types of construction products in the cities and districts (raions) of Donetsk Oblast are analyzed. Proposals on the development of the construction industry in Donetsk Oblast in the issues of solving the housing problems of the population are given.
Оцінено стан будівельної галузі Донецької області, зокрема проаналізовано пошкоджені об’єкти інфраструктури, які були зруйновані внаслідок воєнних дій на Донбасі. Проаналізовано обсяги виконаних будівельних робіт за видами будівельної продукції по містах та районах Донецької області. Надано пропозиції щодо розвитку будівельної галузі Донецької області в питаннях вирішення житлових проблем населення.
Оценено состояние строительной отрасли Донецкой области, в частности проанализированы поврежденные объекты инфраструктуры, которые были разрушены в результате военных действий на Донбассе. Проанализированы объемы выполненных строительных работ по видам строительной продукции по городам и районам Донецкой области. Даны предложения по развитию строительной отрасли Донецкой области в вопросах решения жилищных проблем населения.
|
| issn |
1817-3772 |
| url |
https://nasplib.isofts.kiev.ua/handle/123456789/130895 |
| citation_txt |
The role of the Donetsk oblast construction sector in renovation of the territories / I. Tochonov, T. Kalashnikova, V. Hordiienko // Економічний вісник Донбасу. — 2017. — № 4 (50). — С. 5-9. — Бібліогр.: 11 назв. — англ. |
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5
Економічний вісник Донбасу № 4(50), 2017
SCIENTIFIC ARTICLES
UDC 338.2: 69.009(477.62)
I. Tochonov,
PhD (Economics),
T. Kalashnikova,
V. Hordiienko,
Donbas National Academy of Civil Engineering and Architecture
THE ROLE OF THE DONETSK OBLAST CONSTRUCTION SECTOR
IN RENOVATION OF THE TERRITORIES
Problem statement. In the context of the anti-ter-
rorist operation being held on the territory of Donetsk
Oblast (province) looking for ways to restore and re-
build the territory has emerged full blown. The armed
conflict in the east of Ukraine caused numerous human
casualties and significant material losses. All these drive
the need for restoring Donetsk region. Restoration of
Donetsk Oblast is seen as the development of the terri-
tory which is suited for life while taking into account all
special aspects and problems conditioned by its direct
proximity to the line of confrontation. Erosion of tech-
nologically obsolete economy and severance of tradi-
tional ties with temporary occupied areas does not only
call for the need to form principally new economic com-
plex but also initiates the search for new sources of raw
materials and component parts supply and requires
questing for new markets for manufactured products.
All the facts stated above call for:
− changing the settlement system;
− constructing new roads and utility systems;
− constructing and repairing objects of social in-
frastructure, in the first place, housing development;
− attracting investment in innovation objects and
technologies;
− boosting small and medium business, which
will provide jobs to the residents of the territory and sup-
ply local communities with necessary goods and ser-
vices [5].
Analysis of the latest studies. It is to be noted that
since the beginning of the armed conflict in the eastern
part of Ukraine politicians, researchers, public officials,
residents, mass media have placed special emphasis on
analyzing and monitoring the situation unfolding in Do-
netsk and Luhansk Oblasts. We now have analytical
notes and monographs that have been attempted at eval-
uating the state of Donetsk Oblast economic growth and
giving predictive assessment of further scenarios of re-
storing the areas affected by the armed conflict. Thus, in
the monograph “Donbas and Crimea: return at what
price?” the authors (V. Horbulin, O. Vlasiuk, E. Li-
banova, O. Liashenko) undertook a comprehensive
study of the war at the Donbas and the annexation of
Crimea. The research is conducted from the perspective
of the National Security of Ukraine. In the monograph
reintegration terms and recovery priorities for Donbas
are outlined, the ways to overcome social consequences
of military aggression are defined and prognoses of de-
velopment of situation in Donbas are provided.
In the scientific report “Modernization of the econ-
omy of Donetsk region: strategic implementation sce-
narios from the standpoint of sustainable development
2020” by Y. Harazishvili V. Lyashenko, L. Shamileva,
Y. Zhyhreva [11] conceptual basis for working out the
scenarios of sustainable development with allowance
for economic security restrictive guidelines are set for-
ward. The authors defined strategic scenarios for mod-
ernization of Donetsk Oblast till 2020 with three 'no
change' scenario (pessimistic, realistic and optimistic)
and two scenarios of stable development. However, in
our opinion in these and other scientific efforts the role
and the functions of the construction sector as the basis
for the Donetsk region renovation has not been given
careful consideration.
The objective of the article is to define the role of
Donetsk Oblast construction industry in renovation of
the territories.
Presentation of basic material of the research.
The construction engineering sector of Donetsk Oblast
is to play the key role in restoring the destroyed indus-
trial and social infrastructure and housing facilities of
the region. Table 1 gives certain presentation of the
scope of work required for the renovation of the objects
damaged in the course of the armed conflict.
It stands to mention that the information on mate-
rial losses of Donetsk Oblast slightly varies in different
information sources. Thus, as of 01 March, 2015 accord-
ing to the Department of Economy of Donetsk Regional
State Administration there are 10,000 facilities which
were destroyed or damaged, in particular: 7409 residen-
tial houses, 1346 power supply facilities, 62 heating
supply facilities, 58 water supply facilities. According
to the ReDonbass portal that was created with the sup-
Social and economic problems of Donbas
I. Tochonov, T. Kalashnikova, V. Hordiienko
6
Економічний вісник Донбасу № 4(50), 2017
port of UNDP and PO SocialBoost as of June 13, 2016
on the territories of Luhansk and Donetsk Oblasts there
are 3029 infrastructure facilities that are destroyed or
damaged; 378 of which require major repairs, 216 are
completely destroyed and 2435 are damaged.
Table 1
Information on destroyed and damaged objects of Donetsk oblast infrastructure as of 19.05.2016 [10]
Name of facility
Total num-
ber of de-
stroyed and
damaged ob-
jects
**Restored objects
* Remain destroyed
and damaged
Number
Amount
(mln. of
UAH)
Number
Amount
(mln. of
UAH)
Residential houses 8792 1452 35,1 7340 1890,2
Power supply facilities 213 213 256,5 - -
Heating supply facilities 23 23 2,8 - -
Water supply facilities 21 20 120,5 1 0,98
Gas supply facilities 100 54 10,4 46 20,3
Water disposal facilities 14 14 36,7 - -
Health institutions 48 23 15,2 25 26,6
General educational institutions 108 69 27,8 39 57,7
Pre-school educational institutions 74 51 14 23 17,7
Vocational-technical educational institu-
tions
20 10 3 10 20
Higher educational institutions 11 9 0,5 2 1,2
Institutions of physical culture and sports 8 5 0,1 3 13,5
Cultural institutions 42 22 1,7 20 21,2
Objects of road transport infrastructure 48 32 44,6 16 1257
Industrial facilities 51 19 48,2 32 82
Commercial establishments 64 23 0,4 41 2,3
Other facilities and establishments 100 24 6,8 76 56,02
Total 9737 2063 624,3 7674 3466,7
* Territories controlled by Ukraine.
** Restoration works on most objects were carried out in 2015.
In Anti-Terrorist Operation (ATO) Zone 90 objects
of road transport infrastructure, 54 administrative build-
ings, 39 manufacturing facilities, 34 health institutions,
25 public utility facilities etc. are destroyed or damaged.
It is definitely the restoration of destroyed infrastructure
facilities and housing stock that becomes the key issue
in developing restoration strategies for Donetsk Oblast.
In Donetsk Oblast over 12,000 objects, circa 9,000
of which are residential buildings, have been destroyed.
The housing problem does not only concern those per-
sons whose homes have been destroyed but also inter-
nally displaced persons (IDPs) from the areas not con-
trolled by Ukraine. As mentioned above Donetsk Oblast
has the largest number of IDPs, though their housing
problem is not being addressed in orderly manner.
Here arise the questions: “Is the current construc-
tion sector able to become the basis for restoration of
Donetsk Oblast? What is the region’s construction in-
dustry capacity?”
It should be noted that before the armed conflict the
construction industry in Donetsk region was developing
slowly. Construction companies in the area if compared
to the other regions operated less efficiently and less ef-
fectively took advantage of market opportunities, which
was all conditioned by the socio-economic development
of the region. Presently we should agree with the fact
that the region requires assistance in creating funding
opportunities for modernization. The state of construc-
tion industry has deteriorated due to the ATO. That was
related to the sector-specific issues of construction com-
panies as they are very susceptible to the factors of the
macroeconomic environment. For that reason the main
challenge on the way to ensure the effectiveness of the
construction industry in the whole is seen as the neces-
sity to minimize the negative impact of the external eco-
nomic environment through strategic planning and man-
agement of construction sector development.
In spite of the strong need of the region under study
for housing, the volumes of setting it into operation
are the lowest in Ukraine. Over 2015 in Donetsk
Oblast 43,400 square meters of housing or 0.4% of total
housing stock in Ukraine were put into operation. As a
comparison, in Vinnytsia Oblast these indicators are
381,000 м2 or 3.5%, in Kharkiv Oblast – 384,000 м2 or
3.3% [6]. According to Donetsk Region Development
Strategy until 2020 [10] over the year of 2015 the con-
struction companies of the region carried out construc-
tion work on their own in the amount of 2.3 bln UAH.
I. Tochonov, T. Kalashnikova, V. Hordiienko
7
Економічний вісник Донбасу № 4(50), 2017
If compared with 2014 the volume of construction out-
put was reduced by 2.4 times.
The amount of construction works increased in
January-September 2015: in Luhansk Oblast by 68.5%
and in Donetsk Oblast by 66.2%. The general trend in
January-September 2015 in comparison with the corre-
sponding period in 2014 was influenced by the reduc-
tion in constructing non-residential buildings by 26.7%,
engineering structures by 25.1% and housing by 4.1%.
The amount of the construction works completed in Jan-
uary-September 2016 by type of construction is given in
Table 2, by cities and districts (raions) – in Table 3.
Table 2
The amount of the construction work completed
in January-September 2016 by type construction products1 [1]
Construction work completed in January-September 2016
Thousands of UAH
as a percentage of total
amount
as a percentage of the cor-
responding period in 2015
Construction 1642223 100,0 104,2
Buildings: 290185 17,7 102,9
residential 24733 1,5 57,7
non-residential 265452 16,2 111,5
engineering structures 1352038 82,3 104,7
1 Without regard to the area of ATO zone.
Data can be specified.
The construction companies of the region, which
performed construction contracts, and those, which car-
ried out construction work by in-house way, in January-
September 2016 completed construction work on their
own in the amount of 2.6 bln UAH (without regard to
the area of ATO zone). Compared to the period of Jan-
uary-September 2015 the number of construction prod-
ucts increased by 4.2%. In the areas of Donetsk Oblast
controlled by Ukrainian government the difference
between the most and the least well-off cities (districts)
in terms of capital investment per capita was: in cities –
by 58.6 times, in raions – by 28.7 times.
Table 3
The amount of construction work completed in cities
and districts over the period January-September 2016 1 [1]
Inhabited locality
Completed construction work
Thousands
of UAH
as a percentage
of total amount
Donetsk Oblast 1642223 100,0
Donetsk 448863 27,3
Bakhmut 59852 3,6
Dobropillia 35720 2,2
Druzhkivka 301162 18,3
Kostiantynivka 6103 0,4
Kramatorsk 128534 7,8
Makiivka 40366 2,5
Mariupol 388007 23,6
Myrnohrad 15934 1,0
Pokrovsk 94315 5,7
Sloviansk 10100 0,6
Khartsyzk 20730 1,3
Volnovakha Raion 8240 0,5
Marinka Raion 2568 0,2
1 Without regard to the area of ATO zone.
Data can be specified.
In 2016 57.600 m2 of total floor space of residential
buildings (including 51.700 m2 in urban settlements)
were put into operation, which is by 32.6% more.
The construction companies of the region, which
performed construction contracts, and those, which car-
ried out construction work by in-house way, in January
2017 completed construction work on their own in the
amount of 142 mln UAH (without regard to the area of
ATO zone). Compared to January 2016 the number of
construction products increased by 9.5 %.
The main problem is the lack of funds available for
investment in restoration of housing stock and industrial
I. Tochonov, T. Kalashnikova, V. Hordiienko
8
Економічний вісник Донбасу № 4(50), 2017
and social infrastructure. According to experts as early
as 2015 not less than 3.5 bln of UAH was required in
Donetsk Oblast for restoring the cities and villages af-
fected by the armed conflict. We agree with the opinion
of the academician E. Libanova [5] that the lack of re-
sources significantly limits the possibilities of sending
budget funds for revival of Donbas, the hopes for
foreign investment might not materialize; therefore, it is
of vital importance to attract personal funds of the pop-
ulation of the regions. For this purpose it is necessary:
1) to reform the taxation system;
2) to change the system of income distribution be-
tween budgets of different levels;
3) to turn to the development budget at the expense
of budget allocations, state domestic loans, the resources
of specialized financial institutions and government se-
curities with preferences for their acquisition for popu-
lation’s own savings [5].
To attract investment in the economy of the region
it is necessary to ensure a congenial investment climate,
to increase the investment prospects of enterprises and
to facilitate the search for potential investors, as well as,
to create enterprises with foreign authorized capital and
to determine the priorities of the investment policy of
the region, which must be outlined in documents on
regional and urban development programs, ant thus, le-
gitimate for investors.
The housing problem is the most acute and urgent
for all internally displaced persons from the ATO zone
and requires a state approach to its solution. Now there
are more than 70 000 citizens with housing needs in the
region. Of those, 23,000 are young people. In addition,
in Donetsk Oblast there live about four thousand ATO
participants and 720000 registered IDPs. Restoration of
housing stock is one of the most important issues of the
Program for the Restoration and Development of Don-
bas.
The restoration of housing stock in the affected ar-
eas may consist of several components, which, depend-
ing on the degree of damage to the housing, are imple-
mented in two separate directions: firstly, these are new
construction developments in inhabited localities with a
high proportion of destroyed housing; secondly, the res-
toration of the buildings, technical and technological
characteristics of which are suitable for further mainte-
nance.
As an intermediate step in the realization of this
important task the construction of temporary houses for
the groups of returnees, as well as for the "pioneer de-
velopment squads", can be considered, and it is advisa-
ble to engage IDPs who will get the opportunity to par-
ticipate in reconstruction work. These houses can be of
a container type and can be located in support centers in
the form of small settlements.
Currently, Ukraine has three basic programs to
stimulate the development of housing construction,
namely, the State target socioeconomic program on
the construction (acquisition) of affordable housing
for 2010-2017 [3], the State Programme for providing
youth with housing in 2013-2017 [7] and the State Tar-
get Program on Village Development of Ukraine for
the period till 2015 [9], as well as a number of regional
programs.
Donetsk regional department of the State Fund for
the Promotion of Youth Housing Construction has de-
veloped a draft regional program to provide certain cat-
egories of citizens of Donetsk Oblast with affordable
housing. In particular, this program offers preferential
long-term loans for the acquisition and construction of
housing for combatants, IDPs, civil servants and young
families. It is proposed to issue loans with a rate of 0 %
to 3% for a period of 20 years or until the recipient enters
retirement age. The first installment will be 6% of the
standard cost of housing. All programs provide for the
creation of appropriate financial and institutional mech-
anisms so that to ensure the affordability of housing for
the population. It is advisable to offer proposals on the
priority of financing. Another urgent problem is the lack
of necessary interaction and communication between
the public-supported volunteer organizations that pro-
vide assistance to IDPs and housing organizations and
construction companies that are now able to provide af-
fordable housing.
Conclusions and directions for further research.
Thereby it shall be proposed for the Cabinet of Ministers
of Ukraine to adopt an appropriate resolution and guid-
ance documents for the Ministry of Regional Develop-
ment, Construction and Housing and Communal Ser-
vices of Ukraine on the introduction of changes and cor-
rections to the current state targeted programs in order
to stimulate housing construction with a focus on the
successful solution of housing problems of IDPs; to cre-
ate conditions for partnership relations between public
organizations and construction developers on the for-
mation and implementation of mechanisms for ensuring
housing affordability for IDPs.
As a result of the analysis of the world experience
and domestic practice of housing provision for IDPs we
have identified the problems and obstacles in this area,
as well as provided the following proposals for their
solving:
1. to provide an inventory of the housing stock and
its use to create temporary housing for IDPs;
2. to ensure the renewal of social housing construc-
tion in the region and its use to solve the housing prob-
lem of IDPs;
3. to reorient the existing programs for the devel-
opment of housing construction to address the housing
problems of IDPs;
4. to carry out informational and institutional sup-
port for the solution of housing problems of IDPs; keep
a register of IDPs’ housing needs;
5. to ensure the formation of a permanent housing
stock for IDPs, who decided to stay in the areas for dis-
placement;
I. Tochonov, T. Kalashnikova, V. Hordiienko
9
Економічний вісник Донбасу № 4(50), 2017
6. to develop the mechanisms for compensation of
the cost of the housing lost during actions related to
ATO;
7. to develop mechanisms for regulating prices in
the rental sector of residential real estate and ensure the
expansion of rental housing base.
With a view to further restoration of the region it is
required to introduce a special program for the develop-
ment of the construction sector in the region. In this pro-
gram two directions should be outlined: 1) new con-
struction developments in inhabited localities with a
high proportion of destroyed housing; 2 ) restoration of
the buildings which technically and technologically
suitable for further maintenance.
References
1. Головне управління статистики у Донецькій
області (Соціально-економічне становище Донець-
кої області за січень-вересень 2016 року). URL:
http://www.donetskstat.gov.ua/statinform1/byd6.php.
2. Донбас і Крим: ціна повернення : монографія / за
заг. ред. В. П. Горбуліна, О. С. Власюка, Е. М. Ліба-
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ступу: http://history.org.ua/LiberUA/PrezVidnDonb_
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Точонов І. В., Калашникова Т. С., Гордієнко
В. В. Роль будівельної галузі Донецького регіону
в питаннях відновлення територій
Оцінено стан будівельної галузі Донецької об-
ласті, зокрема проаналізовано пошкоджені об’єкти
інфраструктури, які були зруйновані внаслідок во-
єнних дій на Донбасі. Проаналізовано обсяги вико-
наних будівельних робіт за видами будівельної про-
дукції по містах та районах Донецької області. На-
дано пропозиції щодо розвитку будівельної галузі
Донецької області в питаннях вирішення житлових
проблем населення.
Ключові слова: будівництво, Донецька область,
інфраструктура, житло, відновлення території.
Точёнов И. В., Калашникова Т. С., Горди-
енко В. В. Роль строительной отрасли Донецкого
региона в вопросах восстановления территорий
Оценено состояние строительной отрасли До-
нецкой области, в частности проанализированы по-
врежденные объекты инфраструктуры, которые
были разрушены в результате военных действий на
Донбассе. Проанализированы объемы выполненных
строительных работ по видам строительной продук-
ции по городам и районам Донецкой области. Даны
предложения по развитию строительной отрасли
Донецкой области в вопросах решения жилищных
проблем населения.
Ключевые слова: строительство, Донецкая об-
ласть, инфраструктура, жилье, восстановление тер-
ритории.
Tochonov I., Kalashnikova T., Hordiienko V.
The role of the Donetsk oblast construction sector in
renovation of the territories
The state of the construction industry in Donetsk
Oblast is assessed, in particular, the damage to infra-
structure facilities that were destroyed as a result of
armed conflict in Donbas are analyzed. The amounts of
completed construction work by types of construction
products in the cities and districts (raions) of Donetsk
Oblast are analyzed. Proposals on the development of
the construction industry in Donetsk Oblast in the issues
of solving the housing problems of the population are
given.
Keywords: construction industry, Donetsk Oblast,
infrastructure, housing, restoration of territories.
Received by the editors: 24.11.2017
and final form 22.12.2017
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