Economy

EIB allocates almost EUR 100 mln to Ukraine for reconstruction projects

The European Investment Bank (EIB) has allocated EUR 99.6 million in assistance to the Ukrainian government for the reconstruction of about 200 facilities in 18 regions, the press service of the European Union Delegation to Ukraine reported.

EIB Vice-President Teresa Czerwińska, who is responsible for the Bank's operations in Ukraine, said: "Ukraine, like most countries hurt by war, needs strong partnerships and resources, or else spillover effects become even more disruptive. A hundred hospitals, social housing units and educational facilities have already been renovated with our support and thanks to the incredible efforts and determination of the Ukrainian government, municipalities and construction workers. We are honoured to stand with them, providing the necessary financing for new life-changing projects, ensuring sustainable, energy-efficient and rapid recovery."

The release notes that this financial contribution is part of the EIB's emergency solidarity package for Ukraine, which is backed by an EU guarantee.

The funds are being disbursed in two tranches of EUR 60 million and EUR 39.6 million and will enable the reconstruction of nearly 200 small-scale municipal and social infrastructure projects across various crucial sectors in Ukraine. These projects encompass multiple oblasts of Ukraine, including Chernihiv, Dnipropetrovsk, Kharkiv, Kyiv, Mykolaiv, Odesa, Sumy, Volyn and Zhytomyr.

The funding will prioritise major repairs, reconstruction and some new construction of hospitals, public buildings and social housing, as well as wastewater and water facilities. These improvements will benefit the Ukrainian population, including approximately 900 000 internally displaced persons.

The Ukraine Early Recovery and Ukraine Recovery Programmes - two multi-sectoral framework loans from the European Investment Bank signed with Ukraine in 2014 and 2020 and totalling EUR 540 million - have played a vital role in supporting Ukraine. Backed by the European Commission, these initiatives aim to assist the Ukrainian government and municipalities in financing the refurbishment of critical social infrastructure. This not only enhances services but also improves living conditions for internally displaced people and their host communities.

As of the end of 2023, the Ukraine Early Recovery Programme has successfully completed 100 sub-projects, including the construction and renovation of 53 education buildings, 39 health facilities, nine housing units, four administrative buildings, three cultural centres, one library and one sports centre. Currently, more than 60 projects are in various stages of reconstruction.

The Ukraine Recovery Programme has identified 141 sub-projects across Ukraine. These include construction projects for healthcare and social housing buildings, as well as water and waste sector improvements.

The Ministry for Communities, Territories and Infrastructure Development of Ukraine coordinates the programme together with the Ministry of Finance, while the reconstruction projects are fully managed by local government bodies. The United Nations Development Programme (UNDP) in Ukraine provides technical assistance for the initiative, ensuring the effective and efficient implementation of sub-projects.

The EIB's support for Ukraine since the start of Russia's full-scale invasion in 2022 has amounted to EUR 1.7 billion of financing dedicated to emergency repairs for the country's ravaged infrastructure. The EU bank also provided a EUR 4 billion credit line to support the integration of refugees from Ukraine in EU countries.

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