We invite you to read the seventeenth Ukraine Rebuilding Digest with an overview of the recovery news from the Ukraine Rebuilding Alliance for 15-28 July.
Restoring Ukraine will be the largest project in Europe in the 21st century
The restoration of Ukraine will be the largest project in Europe in the 21st century, which will require multibillion-dollar investments. This was stated by the Minister of Foreign Affairs of Ukraine Dmytro Kuleba in an interview with NewsMaker, Ukrinform reports.
Kuleba noted that in the future, Ukraine will become the largest construction site in the world, and this process will open up great opportunities for foreign companies, including Moldovan ones, which can play an important role in the country’s recovery. He stressed that Ukraine would welcome the participation of Moldovan companies in reconstruction projects.
In addition, the Minister stressed the close connection between Ukraine’s recovery and its accession to the European Union. EU membership will open up new opportunities for Ukrainian and Moldovan companies in international markets, in particular by improving access to European markets and reducing trade barriers.
Transforming Ukraine’s recovery
Since the start of Russia’s full-scale invasion in February 2022, Ukraine has faced numerous threats, including significant human losses, destruction of critical infrastructure, and massive population displacement. The main goal of the project, funded by the Government of Japan, is to transform recovery and ensure people’s safety. It includes restoring critical infrastructure, strengthening mine action and victim assistance, clearing debris, revitalising the economy, improving government coordination, and ensuring access to justice and human rights.
The project aims to create a safe environment, meet basic needs and ensure a decent life for all citizens, with a particular focus on supporting internally displaced persons and vulnerable groups. This will help to promote economic recovery, improve business and employment conditions, and ensure transparency and integrity in the process of rebuilding Ukraine.
The Ministry of Infrastructure is strengthening cooperation with Spain in recovery projects
The meeting discussed priorities in infrastructure restoration and the involvement of international partners. Anton Leis Garcia, Director of the Spanish Agency, said that Spain had allocated €400,000 for recovery projects, including the development of cultural relations, humanitarian demining, and alternative energy sources for schools. Support for the development of rail transport is also being considered.
Acting Minister of Communities, Territories and Infrastructure Development of Ukraine Vasyl Shkurakov thanked Spain for its support and suggested focusing on the needs of Zaporizhzhia Oblast, including water supply and sewage. He also invited the Spanish business community to join the Business Advisory Group for Restoration (BAGR) to facilitate effective and transparent recovery. Spain has been providing military and humanitarian assistance to Ukraine since the first days of the large-scale invasion, including €46 million in humanitarian aid and €4.5 million in energy support.
Cooperation with the regions and restoration of energy infrastructure
Deputy Head of the Office of the President of Ukraine Oleksiy Kuleba met with Ambassador of Japan to Ukraine Kuninori Matsuda. Oleksiy Kuleba thanked Japan for its assistance in restoring the energy infrastructure of Kharkiv region, which is constantly subjected to Russian shelling. Kuninori Matsuda condemned the attacks on civilian targets, including the Okhmatdyt children’s hospital, and expressed support for Ukraine.
The meeting also focused on the decentralisation reform in Ukraine and the importance of cooperation between Ukrainian regions and Japanese partners in rebuilding the country. The Ambassador noted Ukraine’s success at international summits and stressed the importance of such events for international support. Oleksiy Kuleba invited the Ambassador to join regular briefings to respond promptly to community requests and coordinate with international partners.
UNDP in Ukraine, in cooperation with the Ministry of Communities, Territories and Infrastructure Development of Ukraine and with financial support from the Government of Japan, has completed a series of trainings for local government representatives from 10 communities participating in a pilot project on recovery planning. The project included the development of recovery and development plans, corruption risk assessment, and the creation of local anti-corruption programmes to ensure transparency.
The training participants gained skills in developing investment projects, engaging the public and partners, and developing priority recovery projects with a focus on vulnerable groups. With this knowledge, communities will be able to present their projects to donors and potential partners to attract investment.
The EU will provide Ukrenergo with a €100 million grant for restoration and protection
On 18 July, Ukrenergo and the Representative Office of the German state development bank KfW in Ukraine signed a grant agreement for EUR 100 million. The funding is provided by the European Commission through the Ukraine Investment Facility programme and is aimed at modernising high-voltage substations in the western regions of Ukraine, building interconnectors, repairing and restoring damaged equipment, and strengthening the physical protection of substations. This grant is the second phase of the programme ‘Reconstruction and Rehabilitation of Ukraine’s Electricity Transmission Infrastructure’.
Since the beginning of the full-scale war, Ukrenergo has attracted international assistance worth EUR 1.5 billion, including EUR 324 million with the support of KfW.
Belgium to allocate €150 million for Ukraine’s reconstruction
Belgium will allocate €150 million for reconstruction projects in Ukraine, including the restoration of energy and social infrastructure in Kyiv and Chernihiv regions. The heads of the governments of Belgium and Ukraine signed the agreement. Prime Minister Denys Shmyhal said that the agreement simplifies the implementation of joint programmes and projects, and will contribute to recovery, economic and social development. As part of the agreement, the Belgian development agency Enabel will open a representative office in Ukraine.
The total needs for the reconstruction of Ukraine are estimated at almost $486 billion, of which $15 billion is needed for rapid recovery. Due to the military actions of the Russian Federation, 10% of the housing stock was destroyed or damaged. Ukraine plans to use frozen Russian assets as the main source of funding for reconstruction, and is cooperating with international partners and creating conditions to attract private investment.
