The World Bank Allocated $232 Mln to Ukraine for Housing Repairs

The World Bank has allocated $232 million to Ukraine for emergency housing repairs. More than 100,000 Ukrainian families will be able to receive assistance to repair homes damaged due to the full-scale Russian invasion.

This information comes from a press release by the World Bank.

The funds will be provided as part of the "Housing Repair for People's Empowerment (HOPE)" project. The project will be overseen by the Ministry for Communities, Territories and Infrastructure Development of Ukraine (Ministry of Restoration).

It is noted that participants in the program will receive compensation for repairs. According to calculations, the funding will allow for the repair of 98,000 individual houses and 8,000 families in 160 multi-apartment buildings in five regions, covering the costs of addressing partial damage.

"The project will support the Ukrainian government in establishing the foundations for sustainable, inclusive, and green recovery - a colossal task that will require time and substantial international support," said Antonella Bassani, Vice President of the World Bank for Europe and Central Asia.

The initial funding for the project is $232 million, of which $70 million is a loan from the International Bank for Reconstruction and Development, guaranteed by the government of Japan, and $162.5 million is a grant from the Ukraine Relief, Recovery, Reconstruction and Reform Multi-Donor Trust Fund.

Additional funding of up to $800 million from the World Bank and partners in the form of credit guarantees, grants, and other contributions is expected later, as mentioned in the press release.

"As of February 2023, the total cost of damage to Ukraine's housing sector was estimated at over $50 billion. This project aims to help repair approximately two-thirds of the damaged residential buildings in the country that are deemed suitable for renovation," the press release states.

It is noted that the HOPE project is the fourth framework project approved by the World Bank in Ukraine this year.

According to the World Bank, the Russian invasion in Ukraine resulted in the damage to about 1.4 million buildings, housing 3.5 million people. The total cost of the damage exceeds $50 billion.

According to preliminary assessments, 1.4 million residential units, accounting for 7% of the total housing stock where 3.5 million people live, were damaged due to the Russian invasion. Furthermore, 87% of the damaged housing consists of multi-apartment buildings, predominantly in urban areas.

As previously reported by The Gaze, the World Bank will provide Kyiv with a loan of $1.5 billion. Ukraine will receive $1.5 billion from the World Bank to support recovery and development. The funds will be provided under the guarantee of the government of Japan. 

The loan is intended to support key areas of state reforms aimed at mitigating the consequences of Russia's invasion of Ukrainian territory. The main areas of assistance include supporting the Ukrainian government in "addressing the needs of recently impoverished and displaced families through household support," as well as strengthening transparency and accountability mechanisms for government expenditures, which can help the economy function during and after the war.