WASHINGTON, August 30, 2023¡ªA new World Bank project will help more than 100,000 families in Ukraine make urgent repairs to homes damaged by Russia's invasion. The will enable homeowners to make light repairs, such as replacing broken windows or fixing damaged roofs. It will also provide repair funds to owners of multifamily residential buildings that are moderately damaged but do not require structural repairs.
¡°The HOPE Project will help thousands of Ukrainian families receive funds to begin repairing their homes before winter sets in,¡± said Antonella Bassani, World Bank Regional Vice President for Europe and Central Asia. ¡°The project will also support the Government of Ukraine to build the foundation for resilient, inclusive and green reconstruction, a colossal task that will take time and require significant international support. ľ¹ÏÓ°Ôº stands with Ukraine as it starts repairing housing and other urban infrastructure.¡±
The total damage cost to Ukraine¡¯s housing sector to be more than $50 billion as of February 2023. This project is designed to help fix the approximately two-thirds of the country¡¯s damaged residential buildings that are considered repairable.
This initial financing, which totals $232 million, will compensate people whose homes have suffered partial damage, including some 98,000 single homes and 8,000 households in 160 residential buildings across five municipalities. Beneficiaries will be retroactively compensated for repairs once their expenditures are verified.
The funding for the consists of a $70 million IBRD loan, backed by a guarantee from the Government of Japan, and a $162.5 million grant from the Ukraine Relief, Recovery, Reconstruction and Reform Multi-Donor Trust Fund. Over time, additional funding of up to $800 million is anticipated from the World Bank partners through guaranteed loans, grants, and other contributions.
The invasion is estimated to have impacted about 1.4 million residential units (7% of total residential unit¡¯s stock), affecting 3.5 million people. Nearly 87% of housing units damaged were in multi-family buildings; four out of five damaged units were in urban areas.
The HOPE Project, which will be implemented by the Ministry for Communities, Territories, and Infrastructure Development of Ukraine, is the fourth World Bank framework project approved for Ukraine this year that mobilizes partner resources through a flexible design to disburse fund quickly and can be scaled as necessary when additional financing becomes available. Other such projects include emergency operations for health, transport, energy, and include appropriate fiduciary, environmental and social safeguards.
Since Russia¡¯s invasion of Ukraine, World Bank-mobilized support has enabled the Government of Ukraine to provide essential services that are reaching more than 13 million Ukrainians. With today¡¯s announcement the World Bank (Group) has now facilitated more than $37 billion in emergency financing to support Ukraine, including commitments and pledges from donors including: the United States, Japan, the United Kingdom, Norway, the Netherlands, Spain, Germany, Canada, Switzerland, Sweden, Denmark, Austria, Finland, Ireland, Lithuania, Latvia, Iceland, and Belgium.
Over the next year, the World Bank and the Government of Ukraine will continue focusing on investments and critical reforms in priority sectors including energy, health, social protection, education, housing, and agriculture.
