The European Commission will facilitate the preparation and implementation of the Ukraine Recovery Programme, in cooperation with the EIB and the Ministry of Communities and Territories Development of Ukraine.
The cooperation includes a €7 million grant from the EU Neighbourhood Investment Platform, complementing the €340 million EIB loan targeted at infrastructure resilience in Ukraine.
The programme will support infrastructure rehabilitation and improve living and business conditions in conflict-affected regions of eastern Ukraine, including oblasts that host a significant number of internally displaced persons.
The European Investment Bank (EIB) and the Ministry of Communities and Territories Development of Ukraine have today signed a grant agreement of €7 million to be funded by the EU to support the preparation and implementation of the Ukraine Recovery Programme. The programme, which received €340 million of EIB financing in late 2020, will contribute to the restoration of decent living conditions and economic activity in areas affected by the conflict in eastern Ukraine and support basic infrastructure needs for internally displaced people and host communities.
The Ukraine Recovery Programme will finance several hundred small- to medium-sized projects at the municipal level to restore social infrastructure, improve public utility services and repair damaged administrative buildings and other key social infrastructure, including hospitals, schools, kindergartens, post offices, street lighting, sewerage systems, municipal transport and relevant transport infrastructure. The loan is expected to benefit around 13.7 million people, boost regional development and promote faster economic growth in Ukraine.
The grant, which comes under the EU Neighbourhood Investment Platform (NIP) and complements the EIB’s financing of the Programme, will contribute to building Ukraine’s infrastructure resilience.
EIB Vice-President Teresa Czerwińska, who is responsible for operations in Ukraine, said:“The EIB, the bank of the European Union, is a long-standing partner of Ukraine. Our noteworthy support will reach parts of Ukraine affected by the armed conflict and assist in their recovery. Together with our fellow EU institutions, we have contributed to improving the daily lives of thousands of people living in a challenging and vulnerable area. Improved and modern infrastructure is a major investment in the future of these communities in eastern Ukraine. We are happy that the EU is complementing our financing for the Ukraine Recovery Programme with a grant from the Neighbourhood Investment Platform to facilitate and support our Ukrainian partners in the successful implementation of the programme.”
Head of the EIB Resident Representation for Ukraine Jean-Erik de Zagon said: “Renovation of hospitals, schools, kindergartens and other social infrastructure objects is really important. These kinds of projects bring very tangible results to the citizens of Ukraine and show the joint commitment of the Ukrainian authorities, EU and EIB. Our EUR 340 million loan for Ukraine Recovery Programme will finance several hundred small- to medium-sized projects at the municipal level to restore social infrastructure. It is an important investment in the future. I am glad that the new grant agreement of €7 million from the EU will support Ukraine in implementing the EIB programme and promoting faster economic and social development of Ukraine.”
Oleksiy Chernyshov, Minister for Communities and Territories Development of Ukraine, said: “Residents of each community have the right to modern infrastructure and comfortable conditions for receiving public services in hospitals, schools, kindergartens, etc. This is one of the priority goals of the Ministry. We highly appreciate our cooperation with our European partners – the European Commission and the EIB.In particular, the implementation of the Ukraine Early Recovery Programme has already helped to reconstruct more than 240 infrastructure facilities in Ukraine. The new €340 million loan agreement, which we signed with the EIB last year, will contribute to an even larger-scale reconstruction of social infrastructure in Ukraine. And a grant of €7 million from the EU will help us in the rapid implementation of the planned recovery.”
Ivan Lukeria, Deputy Minister for Communities and Territories Development of Ukraine, said: “The signed grant of a €7 million will facilitate the implementation of a new loan – the Ukraine Recovery Programme – in accordance with the best practices and in the interests of Ukrainian communities. Our cooperation with the EIB on infrastructure modernisation is successful and efficient. The implementation of the Ukraine Early Recovery Programme is an evidence of that. Thanks to the Programme, hospitals, schools, kindergartens, sports infrastructure and other key infrastructure facilities in eastern Ukraine have already been restored. The new €340 million Programme provides even more opportunities for the country's regions.”
Head of Cooperation at the EU Delegation to Ukraine Frederik Coene said: “Ukraine is a priority partner for the European Union. Our new grant agreement of €7 million will support Ukraine in implementing the EIB Programme focused on the recovery of social infrastructure in the country. It is an important investment in the future of communities in eastern Ukraine, benefiting their citizens and promoting the development of the region as well as the economic growth of the whole country. The combination of EIB loans and EU grants has proven to be a perfect match for Ukrainians’ public investment needs.”
About the EIB in Ukraine:
The EIB has worked with Ukraine since 2007. Ukraine has been the main recipient country of EIB support in the Eastern Neighbourhood, accounting for more than 60% of EIB lending activity in this region. The Bank focuses on social and economic infrastructure, transport and connectivity, local private sector development, energy efficiency, climate action and innovation. Today, the EIB is one of the largest investors in Ukraine with signed projects of about €7 billion.
The Neighbourhood Investment Platform (NIP) is aimed at supporting the EU partner countries covered by the European Neighbourhood Policy in their efforts towards better governance and economic and social development, by matching loans from European public finance institutions (including the EIB) with Community grants. The NIP mainly supports infrastructure projects in the energy, transport and environment sectors, but also supports the development of the private sector. Technical assistance grants are used to improve the implementation of the financed projects, thereby enhancing policy coherence between EIB project decisions, country and sectoral economic reforms and the overall objectives of the European Neighbourhood Policy.
The EIB and the Government of Ukraine today signed three loans totalling €640 million to foster the sustainable growth of Ukraine and the prosperity of its people. The operations are in line with the priorities of the Government of Ukraine and the European Union to support the long-term social and economic development of eastern Ukraine and integration of the conflict-affected regions as well as the development of sustainable municipal transport and the modernisation of the transport infrastructure in the country.
The European Investment Bank, the bank of the European Union, invested €554 million in 2021 in developing Ukraine`s transport infrastructure, urban mobility, education infrastructure, and the local economy, including support to increase COVID-19 resilience. Ukraine remained the main recipient of EIB funding among the countries of the Eastern Neighbourhood, having received more than 60% of all EIB lending in the region.
The EIB invested over €1 billion in Ukraine in 2020 alone, the year of the worst global health and economic crisis for generations, marking the second-highest investment volume in the history of the Bank’s activities in the country. This represents an increase of more than 50% compared to 2019. Total EIB investment in Ukraine has now reached €7.5 billion.