UKRAINE RECOVERY III FL

Promoter – Financial Intermediary

UKRAINE

Location

• Ukraine

Description

The operation consists of a third Framework Loan (FL) to support priority investments in the recovery of areas affected by the conflict in Ukraine and basic infrastructure needs of Internally Displaced Person (IDPs). Despite ongoing war and difficulties, daily life continues in many parts of the country and the Government of Ukraine must ensure that at least basic needs of the population are met. The FL builds on two previous successful operations that have delivered to Ukraine so far more than hundred of schools, hospitals, social housing, water plants etc.

Additionality and Impact

The Project will solely support small-scale infrastructure to address the needs following the full-scale Russian invasion of Ukraine. It is therefore in line with the Ukraine National Recovery Plan objectives to finance social and economic infrastructure projects and the "EU for Ukraine Initiative" to finance reconstruction in Ukraine. The project is aligned with the EU's priorities to support Ukraine, included in the NDICI objectives and will contribute to build back better and to support the region's modernization of its infrastructure. The EIB financing addresses market failures concerning social and critical services provision due to the war context. as well as access to finance for hundreds of Ukrainian municipalities, which otherwise would not have the possibility to make such reconstructions. The proposed operation is expected to advance to several SDG as well. The Bank's project team in conjunction with local partners works to align with EU policies and international standards. Furthermore, a Technical Assistance will be provided for preparation, implementation and monitoring of the project.

Objectives

The aim is to support critical public infrastructure investments to ensure basic needs and decent living conditions for IDPs and host communities. The project will cover municipalities of Ukraine under control of the Ukrainian Government that are hosting significant influxes of IDPs and that are sufficiently safe to benefit from the technical assistance. The sectors allowed to be financed under the FL are: housing, education, health, district heating, administrative buildings, water, sanitation, local transportation. Technical designs are also eligible.

Comments

Guarantee to be determined.

Sector(s)

• Energy - Electricity, gas, steam and air conditioning supply
• Water, sewerage - Water supply; sewerage, waste management and remediation activities
• Urban development - Construction
• Transport - Transportation and storage

Under Global Europe NDICI guarantee

Under EFSD+ Guarantee

Proposed EIB finance (Approximate amount)

EUR 250 million

Total cost (Approximate amount)

EUR 250 million

Environmental aspects

The large majority of the investments foreseen by the project are repairs and refurbishment of damaged infrastructure in the sectors mentioned above. Roads (if included) are to be performed within existing rights of way or on new alignment over short sections. Some of such investments might be subject to an Environmental Impact Assessment (EIA) under the National EIA Law, which transpose the requirements of the EIA Directive 2011/92/EC (as amended by Directive 2014/52/EU) and ensures compliance with Ukraine's international obligations under the Association Agreement between EU and Ukraine. Additionally, the social risks and impacts related to the sub-projects will be duly carried out as part of the appraisal, in accordance with the EIB Social Standards.

Procurement

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Status

Signed - 11/06/2024