The Polaris Programme “Supporting Multilevel Governance in Ukraine” is expanding its support for municipal enterprise reform and invites hromadas to become partners. A dedicated thematic area will focus on improving the management of municipal assets and resources, enhancing the efficiency of municipal enterprises, and improving the quality of services they provide.

Under the Municipal Enterprise Reform thematic area, at least five hromadas will receive expert support to transform between one and three commercial municipal enterprises selected by each hromada. They will also receive recommendations on developing and implementing policies for the management of municipal assets and resources in line with the principles of good democratic governance.

For reference: Municipal enterprises are expected to be transformed into business companies or non-profit companies (100% owned by a hromada), or into joint municipal enterprises established through intermunicipal cooperation, in accordance with Law No. 4196 “On Peculiarities of Regulating the Activities of Legal Entities of Certain Organisational and Legal Forms During the Transitional Period and Associations of Legal Entities”.

Applications are open from 19 August to 6 September 2026.

The Programme’s support includes:

• support based on a comprehensive model combining legal, financial, accounting and organisational analysis of the readiness of the hromada and municipal enterprise for transformation;
• individual consultations for each selected partner hromada on the transformation of municipal enterprises;
• advisory support on transitioning to the management of municipal assets and resources in line with OECD standards;
• recommendations on implementing corporate governance policies based on European best practices and models, including disclosure of information on public assets and services, integrity and corruption prevention;
• recommendations on optimising the inventory, accounting and management of the hromada’s assets and resources;
• participation in training activities for local self-government professionals responsible for municipal asset management.

   

Duration of support: 8 months (from October 2026 to May 2027). Selected hromadas will sign a Memorandum of Cooperation with the Polaris Programme.

Partner hromadas and municipal enterprises may participate in study visits to other hromadas and municipal enterprises. In 2027, the Programme may consider providing selected hromadas (or their legal entities receiving support) with certain types of material support to facilitate activities under the thematic area, including those implemented in partnership with the Programme.

Who can apply?

Hromadas may apply for support for up to three municipal enterprises that:
1) are 100% owned by the respective hromada, or were established with the participation of the partner hromada through intermunicipal cooperation in the form of a joint municipal enterprise;
2) carry out economic activities and operate on a commercial basis;
3) have as their primary activity the provision of utility and/or transport services, services related to public amenities, burial and funeral services, outdoor lighting, road maintenance, and/or the management of social, commercial or critical infrastructure facilities of the hromada;
4) are not undergoing preventive restructuring, bankruptcy or liquidation proceedings;
5) do not have assets located in the temporarily occupied territories of Ukraine or in areas of active hostilities.

Criteria for applicant hromadas:

• small and medium-sized hromadas with a population of up to 50,000 residents (the Programme may also consider applications from hromadas with a population of more than 50,000);
• readiness to undergo a comprehensive analysis and provide, in a timely manner and at the request of Programme experts, relevant documents, including municipal enterprise statutes, financial and tax reports, property-related documents, information on land plots, contracts, licences, permits, declarations and other authorisation documents, staffing schedules and HR documentation, information on outstanding debts and court disputes, approved tariffs, information on investment programmes, documents related to the implementation of local programmes, as well as accounting records and documentation concerning the financing of municipal enterprises from local budgets;
• readiness to designate a responsible contact person at no lower than the level of head of a department or unit;
• a motivated leadership team and designated responsible representatives of the selected municipal enterprises as part of the project team;
• preference will be given to hromadas planning the transformation of a joint municipal enterprise established through intermunicipal cooperation. 

Detailed application evaluation criteria are available in this document (in Ukrainian).

How to apply?

Applications may be submitted by local self-government officials. To apply, please complete the following steps by 6 September 2026 inclusive:

1. Complete the online application form. 
2. Attach a motivation letter from the head of the municipal enterprise to the application form.
3. Attach an information note on the enterprise(s) to the application form.
4. Attach letters of support from other founding hromadas where the application concerns support for a joint municipal enterprise.

Key dates:

• 6 September, 23:59 — application deadline;
• 7–20 September — review of applications and possible interviews with shortlisted hromadas;
• 28 September–9 October — visits to hromadas;
• by 16 October — finalisation of the selection process and start of cooperation with selected partner hromadas under the thematic area.

The results of the selection process will be published in the second half of October 2026.

If you have any questions, please contact us by email at halyna.nereta@polaris.org.ua.