EIB and Ukrainian Government Collaborate on Reconstruction Efforts Amid Conflict

EIB and Ukrainian Government Collaborate on Reconstruction Efforts Amid Conflict

(IN BRIEF) The European Investment Bank (EIB) and the Ukrainian government join forces to advance reconstruction efforts in war-torn regions, allocating funds for critical infrastructure projects under the Ukraine Recovery Programme (URP) and the Ukraine Early Recovery Programme (UERP). With €161 million allocated to local budgets, over 100 cities and communities are set to undergo restoration initiatives, including the reconstruction of hospitals, social housing, educational facilities, and water and waste facilities. Vice Prime Minister Oleksandr Kubrakov expresses gratitude for the support from the EIB and European partners, highlighting the importance of rebuilding vital infrastructure amidst ongoing conflict. EIB Vice-President Teresa Czerwińska reaffirms the bank’s commitment to aiding Ukraine’s recovery, while EU Ambassador Katarína Mathernová emphasizes the comprehensive EU support for Ukraine’s resilience and development.

(PRESS RELEASE) LUXEMBOURG, 9-Mar-2024 — /EuropaWire/ — More than 100 cities and communities in Ukraine will have municipal infrastructure rebuilt under two EIB recovery programmes after the Ukrainian government allocated €161 million to local budgets.

The allocation paves the way for Ukrainian cities to proceed with restoration efforts that include:

• 155 projects under the Ukraine Recovery Programme (URP), starting with an educational project in Vinnytsia where on-site construction is already underway
• 66 projects under the Ukraine Early Recovery Programme (UERP).

These initiatives, planned to be carried out in 2024-2025, aim to restore social infrastructure such as hospitals, housing, schools, water and waste facilities in liberated territories and areas close to the conflict zone, including the Kyiv, Odesa, Sumy, Kharkiv, Mykolaiv and Zaporizhzhia regions.

Oleksandr Kubrakov, Vice Prime Minister for the Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine, said: “Under the initiative of the Ministry for Communities, Territories and Infrastructure Development of Ukraine, the Cabinet of Ministers approved the distribution of subsidies from the state budget to local budgets for 2024 for the EIB’s two recovery programmes. This will enable communities to accelerate implementing recovery projects, including the restoration of educational and healthcare institutions, administrative service centres and essential public utilities. Despite the ongoing war, we must uplift our economy, launch our enterprises and rebuild critical infrastructure to ensure people’s lives continue to move forward. We express our gratitude to the EIB and our European partners for their support in these recovery efforts.”

Teresa Czerwińska, EIB Vice-President responsible for operations in Ukraine, said: “Supporting Ukraine is a top priority for the EIB. Despite daily missile strikes, civilians killed and injured, massive displacements, the Ukrainians remain determined to return to their lives pre-war. And EIB remains determined to support them. In a partnership with the Government of Ukraine and the European Commission, we have developed the recovery programmes, a well-functioning mechanism, that channels our funds to the communities of Ukraine that have suffered from the war and offers them the possibility to reconstruct hospitals, schools, kindergartens, housing, water facilities. In other words, it offers them the possibility to re-establish vital social services. We stand ready to develop this support further.”

EU Ambassador to Ukraine Katarína Mathernová said: “The EU’s support for Ukraine is comprehensive, encompassing political, financial, economic, humanitarian, military, and diplomatic dimensions. Most importantly, it remains unwavering. We warmly welcome the progress of recovery programmes of the EIB. With the backing of EU grants, these programmes play a crucial role in ensuring that Ukrainian citizens continue to access essential services, including housing, hospitals, and water facilities, thereby maintaining their quality of life even in challenging times.”

Background information

EIB recovery programmes

The Ukraine Early Recovery Programme (UERP), with a funding of €200 million, and the Ukraine Recovery Programme (URP), with a funding of €340 million, represent two loan agreements between the EIB and Ukraine signed in 2014 and 2020, respectively. These loan accords, supported by the EU grants, are designed to empower local authorities to renovate social infrastructure, thereby enhancing the living standards of internally displaced persons and their host communities. As of March 2024, UERP has successfully completed 97 projects, which include educational facilities, healthcare centers, and units of social housing, with an additional 66 projects planned for implementation in 2024-2025. URP has marked the commencement of its first project through the construction of an educational facility in Vinnytsia oblast, representing a pivotal move towards initiating 155 more social infrastructure projects over the course of 2024-2025. The Ministry for Communities, Territories and Infrastructure Development of Ukraine coordinates the programmes 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 projects.

EIB in Ukraine

Present in Ukraine since 2007, the EIB has been unwavering in its support for the country’s EU integration, which has become even more vital since Russia’s full-scale invasion. The Bank, with a portfolio of projects valued at €7.3 billion, has invested in municipal infrastructure, energy, transport and SMEs, all with the goal of improving daily life, boosting economic growth and aiding in Ukraine’s resilience and reconstruction.

Since Russia’s full-scale invasion of Ukraine in 2022, the EIB offered immediate relief, disbursing €2 billion of financing for emergency repairs to the country’s ravaged infrastructure. Through the EU for Ukraine initiative and fund, the Bank remains committed to stepping up its activities in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, EU Member States and international partners.

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SOURCE: European Investment Bank