Ukraine Investment Framework okays launching 11 projects in various sectors

Following the results of the fifth meeting of the Steering Board of the Ukraine Investment Framework (UIF), the launch of a new package of public investment programs was agreed, a total of 11 projects, including three projects coordinated by the Ministry of Communities and Territories Development of Ukraine in the areas of social housing, transport and municipal infrastructure.

According to the Ministry of Development's press service, the total amount of resources within the UIF mechanism is EUR 9.4 billion. Of this amount, EUR 6.2 billion has already been allocated to support projects.

Representatives from the European Commission (EC), the European Parliament, EU member state governments, international financial organizations, and Ukrainian ministries responsible for project implementation attended the meeting. The Ministry of Development was represented by Deputy Minister Maryna Denysiuk.

She expressed her gratitude to the European Commission for its unwavering support of Ukraine. However, she emphasized that the available UIF resources only cover a tenth of the necessary funds for rebuilding transport, housing, and municipal infrastructure. Attracting additional investments is necessary to ensure a sustainable recovery.

"Our common challenge is to identify additional co-financing opportunities, mobilize additional resources, and accelerate project implementation mechanisms to ensure the rapid and effective use of every euro within the UIF," Denisyuk noted.

The EIB Social Housing Project (Tranche I) plans to build housing for 1,500 internally displaced persons (IDPs) as part of a pilot initiative and establish a systemic institutional framework for affordable social housing in Ukraine. The project will establish a financial and operational framework, as well as relevant legislation, to regulate issues related to the rental of social housing. Different housing management models will be tested in cities and communities to determine the most financially sustainable ones.

The EIB Water Supply and Sanitation Project includes a EUR 50 million grant and a EUR 13 million technical assistance grant, both of which were agreed upon by the UIF. Additionally, the project includes a EUR 100 million EIB loan, which is secured by a UIF guarantee and has already been ratified by the Verkhovna Rada for financing public sector projects.

The project plans to modernize water supply systems, treatment and pumping stations in an energy-efficient manner, as well as reconstruct sewage networks in affected regions and areas with significant internally displaced person (IDP) populations.

The World Bank and EBRD project, Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC), plans to restore important railways, roads, and Danube ports, as well as modernize border crossing points. The project covers Ukraine as a whole, prioritizing de-occupied territories. Implementing the project will improve transport connections and increase infrastructure resilience to climate change.

During the Steering Board meeting, financing was agreed upon for hospital modernization projects in six cities, technical assistance for developing public investment projects (PREPARE), and natural gas procurement. Notably, Norway and the EU will provide Naftogaz Ukrainy with a grant of EUR 127 million. This support is crucial for providing heat to millions of households, hospitals, and institutions across the country because it will enable the purchase and storage of additional gas to get through the 2025-2026 winter.

The Steering Board of the Ukraine Investment Framework (UIF) is responsible for the strategic and operational management of the program's resources. The Steering Board approves financing (loans, grants, and guarantees) for projects and portfolios. This ensures that the use of UIF funds aligns with the Ukraine Facility Implementation Plan.