EU-Backed Programme to Accelerate Ukraine's Infrastructure Rebuilding

Strategic Insights -

The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the European Commission have launched the Ukraine FIRST programme to accelerate large-scale infrastructure projects in Ukraine. The initiative aims to provide swift funding and technical assistance for project preparations, focusing on energy infrastructure, transport corridors, housing, and essential public services. The programme will receive an initial EUR30 million from the EBRD, EIB, and the European Commission, with additional funding anticipated from EU countries and donors.

Key Takeaways:

  • The Ukraine FIRST programme is a joint initiative between the EBRD, EIB, and the European Commission to support Ukraine's infrastructure rebuilding efforts.
  • The programme will provide a total of EUR30 million for project preparation, with additional funding expected from EU countries and donors.
  • The initiative focuses on large-scale infrastructure projects, including energy infrastructure, transport corridors, housing, and essential public services.
  • The programme has two components: one managed by the EBRD, providing grants for project preparation, and another led by the EIB, offering expert consultancy services.
  • Ukraine FIRST is part of a broader "Framework for Project Preparation" initiative, aiming to improve coordination among Ukrainian ministries, IFIs, and donors.
  • Pilot projects have been identified, including a EUR160 million loan for state-owned energy company Ukrnafta and a technical support project for the Odessa to Remi M-15 highway.

Statistics:

  • The estimated damage in Ukraine as a result of Russia's full-scale invasion in February 2022 is over $524 billion.
  • The Ukraine FIRST programme aims to accelerate large-scale infrastructure projects, focusing on energy infrastructure, transport corridors, housing, and essential public services.
  • The programme will provide technical assistance, including feasibility studies, environmental assessments, cost estimates, and procurement plans, to support project preparations.
  • The €160 million loan for state-owned energy company Ukrnafta will supply and install 250 MW of dispersed gas-fired energy generation capacity around the country.

Sources:

  • European Bank for Reconstruction and Development
  • European Investment Bank
  • European Commission