The European Investment Bank (EIB) is poised to allocate €450 million ($511 million) to Ukraine, aimed at bolstering two key infrastructure recovery projects. This information was revealed by the Ukrainian Ministry for the Development of Communities, Territories, and Infrastructure (Reconstruction Ministry) on Thursday. The funds are part of a larger cooperation program agreed upon in a Memorandum of Understanding signed in June 2022.
The two projects, named Ukraine Recovery III FL and Ukraine Water Recovery FL, are set to receive €250 million and €200 million, respectively. The first tranches of €100 million each are expected to be released by the end of 2023. The funds will be directed towards critical social, urban, and water infrastructure.
The Ukraine Recovery III project will utilize its allocated funds for urgent social and municipal infrastructure repairs. In addition, it aims to construct new facilities for displaced persons and host communities.
On the other hand, the Ukraine Water Recovery project will finance the restoration of war-damaged water infrastructure that serves a large number of internally displaced persons (IDPs). This includes managing the aftermath of Russia's demolition of the Kakhovka dam.
These initiatives form an integral part of an €840 million EIB credit scheme for prioritized Ukrainian infrastructure recovery efforts. The financial support provided through these initiatives is expected to facilitate the rebuilding of Ukraine's essential systems devastated by conflict, ensuring basic services for civilians affected by the ongoing strife.
Final approval from the EIB Board of Directors and the EU4U Donor Committee is anticipated by year-end.
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