Ukraine Rebuilding Digest №20

We invite you to read the twentieth Ukraine Rebuilding Digest, an overview of the recovery news from the Ukraine Rebuilding Alliance for October 2024.

Switzerland to provide funding and engage the private sector in Ukraine’s recovery projects

Switzerland continues to support Ukraine’s recovery, including the creation of new jobs in the regions. Deputy Prime Minister Oleksiy Kuleba and Swiss Ambassador Felix Baumann agreed to expand cooperation, focusing on the construction of housing for internally displaced persons and regional development programmes. Switzerland plans to allocate 1.5 billion francs for reconstruction projects, of which 1 billion will be spent on local governance, demining, and humanitarian aid.

In addition, Switzerland is considering new assistance programmes involving its private sector. A delegation is working in Kyiv to assess Ukraine’s long-term needs. As part of the cooperation, a meeting was held with the SECO delegation to discuss support for Ukraine in the economic sphere and effective regional policy.

Norway and UNDP strengthen partnership to accelerate Ukraine’s energy recovery

The United Nations Development Programme and the Government of Norway are deepening their cooperation to rebuild Ukraine’s energy infrastructure. Norway has committed NOK 1.1 billion (USD 105 million) to support critical power generation capacity, install solar panels for schools and hospitals, and provide an additional 80 MW of power to the national grid. These measures are designed to meet the needs of more than a million people for heat and water.

UNDP and Norwegian representatives emphasise the importance of restoring the energy system, especially in the face of Russian attacks on infrastructure. UNDP, with its long-standing experience in Ukraine, continues to implement strategic initiatives for the development of green energy, contributing to the country’s sustainable energy future and energy security.

Parliamentary hearings on biodiversity restoration and development of protected areas in Ukraine were held

The Verkhovna Rada Committee on Environmental Policy held a hearing in Kyiv on the legal framework for the conservation of protected areas. Minister of Environmental Protection of Ukraine Svitlana Hrynchuk and her deputy Serhiy Vlasenko emphasised the importance of this issue for the country’s environmental safety and the implementation of paragraph 8 of the Ukrainian Peace Formula, which provides for the preservation of nature.

Svitlana Hrynchuk stressed the need to consolidate efforts to preserve Ukraine’s nature reserves. Among the important initiatives, she highlighted support for the draft laws on the protection of the Emerald Network, tax cuts for nature conservation institutions, and increased liability for violations of environmental rules, including jeeping in protected areas.

The hearings brought together over 250 participants, including representatives of parliament, government, international organisations, scientists and the public. The participants discussed the creation of new nature reserves, the impact of the war on ecosystems, and ways to restore biodiversity.

Rebuilding Ukraine: how a multi-storey building in Uman, where Russian missiles destroyed an entire entrance, is being restored

The attack on a multi-storey building in Uman on 28 April 2023, when Russian X-101 missiles destroyed the entrance and killed 23 people, including 6 children, was one of the largest acts of terrorism in the Cherkasy region. The restoration of this destroyed house began in November 2023. UAH 59 million was allocated from the Fund for Elimination of the Consequences of Russian Aggression, and another UAH 5 million was provided by the local budget. However, residents doubt that the deadlines will be met, as the reconstruction is delayed due to design flaws and technical difficulties.

However, according to the contractor, the work is still on schedule. Experts continue to adjust the project, and at this stage, the installation of the technical floor is being completed. However, residents are dissatisfied with the quality of the work and are demanding an expert review.

Most of the victims have found temporary accommodation, including in social apartments or with relatives. Despite the support of the city administration and businesses, people are waiting to return to their homes, as there are three months left before the New Year holidays and less than six months before the anniversary of the tragedy. Experts say that the money that will not be used in 2024 will be transferred to the next year. However, there is already a tendency in Ukraine for the funds allocated for reconstruction to be unused, and 100 out of more than 400 sites planned for reconstruction last year have not been spent. This is the reason for additional verification of expenditures.

With an eye on reconstruction. Where construction plants are opening in Ukraine

Ukraine’s construction industry has been going through a difficult period since the outbreak of the Great War, but it has shown considerable resilience and readiness to recover. Until 2022, the sector was actively developing and supplying the domestic market, with Ukraine producing many types of construction materials such as concrete, cement, rebar, bricks, doors and windows. However, due to Russia’s aggression, many factories were destroyed or occupied, and production levels dropped significantly.

Now that the country has begun to rebuild, entrepreneurs are actively investing in the resumption of production. Foreign companies, including those from France, Germany and Ireland, have also started to open new factories in Ukraine, investing in infrastructure development and job creation. For example, Saint-Gobain is investing in a dry mix plant in Ivano-Frankivsk region, while Kreisel is expanding its production in Ukraine, particularly in Lviv and Kyiv regions.

According to forecasts, Ukraine will need more than $100 billion in construction materials to rebuild post-war housing and infrastructure. Localisation of production will be an important element – Ukrainian companies can provide 90% of the required materials. However, this requires investment and stable access to energy resources. If the recovery is successfully localised, tens of thousands of jobs can be saved and the economic costs of imports can be significantly reduced.

One of the biggest challenges remains the restoration of production capacity in the industry, particularly for materials such as cement, concrete and flat glass. In this context, the modernisation of existing plants, such as the cement plants in Balakliya and Kramatorsk, is an important step to reduce shortages and lower the cost of recovery.

Despite the challenges, Ukraine’s construction sector shows potential for a significant recovery if the government and business continue to invest heavily in infrastructure and production support.

Ukraine Rebuilding Alliance visited the unique social and residential complex ‘Chortkiv Unites’

The visit of the Recovery Alliance of Ukraine to the Chortkiv United Social Housing Complex was an important step in reviewing practices that promote the integration of internally displaced persons (IDPs) and the development of local communities. Chortkiv, as an example, demonstrates an effective model of social housing that not only provides homes for IDP families, but also supports the local economy by creating jobs and opportunities for integration into community life.

The project was the result of cooperation with NEFCO and other international partners, which helped attract a €1.96 million grant to transform an old dormitory into a modern social housing complex. The housing, which is designed for 40 families, is equipped with everything you need, including thermal modernisation, a new heating system and smart apartments with children’s play areas. This approach is not only cost-effective, but also effective in providing affordable and quality housing, which is an important aspect of ensuring the stability and development of local communities.

In addition, the establishment of the project’s Social Service Centre allows IDPs to find work at socially acceptable prices in areas such as hairdressing, ateliers and shoe repair shops. This is an important step in ensuring social integration and supporting the local community’s economy.

Oleksiy Kuleba: We are striving to increase the involvement of Korean business in Ukraine’s recovery

This meeting is an important step in strengthening bilateral relations between Ukraine and the Republic of Korea, especially in the context of Ukraine’s recovery from the war. Oleksiy Kuleba emphasised the importance of Korea’s experience and innovations in post-war reconstruction, which can become an important source of knowledge for Ukraine in the recovery process. The emphasis on regional policy, support for internally displaced persons (IDPs) and infrastructure projects is a priority for the Ukrainian government.

For his part, Jeong Byung-ha expressed Korea’s readiness to engage Korean businesses in Ukraine’s recovery and provide concessional loans, which is an essential tool for financing projects. The visit of Ukrainian business to Korea to establish partnerships will be an important step in the development of cooperation between the two countries.

The Ukrainian representatives also drew attention to the importance of energy projects, particularly in the area of energy decentralisation and the development of renewable energy sources. Technologies that use renewable resources are a priority, which opens up opportunities for cooperation in this area. Particularly interesting is the possibility of applying Korean technologies in the field of waste management and recycling, which can become an important part of Ukraine’s sustainable development.

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