World Bank allocates US$232 million for urgent repairs to damaged homes in Ukraine

The World Bank is to send Ukraine US$232 million in compensation for light repairs to private homes affected by the Russian invasion.

Source: World Bank

Details: The funds will be allocated as part of the Housing Repair for People's Empowerment (HOPE) project. The project will be implemented by the Ministry for Communities, Territories and Infrastructure Development of Ukraine (Ukraine's Ministry for Recovery).

Participants in the project will receive compensation for repairs.

The funding will help compensate for the costs of repairing partial damage to an estimated 98,000 separate homes and 8,000 households in 160 apartment buildings across five oblasts of Ukraine.

Quote: "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," said Antonella Bassani, World Bank Regional Vice President for Europe and Central Asia

Details: The initial funding for the project is US$232 million, consisting of a US$70 million loan from the International Bank for Reconstruction and Development secured by a guarantee from the Government of Japan and a US$162.5 million grant from the Ukraine Relief, Recovery, Reconstruction and Reform Multi-Donor Trust Fund.

Over time, additional funding of up to US$800 million is anticipated from the World Bank and its partners through loan guarantees, grants and other contributions, the statement said.

"The total damage cost to Ukraine’s housing sector was estimated 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," the press release said.

The HOPE project is the fourth World Bank framework project approved in Ukraine this year.

Background: Preliminary estimates suggest that 1.4 million homes lived in by 3.5 million people have been damaged by the Russian invasion, which is 7% of the total housing stock. 87% of the damaged housing is apartment buildings, mostly in urban areas.

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