EIB to Allocate €450 Million for Ukrainian Infrastructure Recovery Projects

The European Investment Bank (EIB) is set to invest €450 million (approximately $511 million) in Ukraine to support two significant infrastructure recovery projects. This announcement was made by the Ukrainian Ministry for the Development of Communities, Territories, and Infrastructure on Thursday. The funding is part of a broader cooperation initiative outlined in a Memorandum of Understanding established in June 2022.

The projects, known as Ukraine Recovery III FL and Ukraine Water Recovery FL, will be allocated €250 million and €200 million, respectively. The initial payments of €100 million each are expected to be disbursed by the end of 2023, with the funds targeted at vital social, urban, and water infrastructure.

The Ukraine Recovery III project will focus on urgent repairs to social and municipal infrastructure and will also work on establishing new facilities for displaced individuals and the communities hosting them.

Conversely, the Ukraine Water Recovery project will fund the restoration of water infrastructure damaged by the conflict, particularly benefiting a large number of internally displaced persons. This effort includes addressing the consequences of the destruction of the Kakhovka dam.

These projects are part of an €840 million credit scheme from the EIB aimed at prioritizing the recovery of essential infrastructures in Ukraine. The financial aid provided through these initiatives is expected to assist in the rebuilding of fundamental systems devastated by the ongoing conflict, ensuring that basic services continue for civilians affected by the war.

Final approval from the EIB Board of Directors and the EU4U Donor Committee is expected by the end of the year.