The World Bank will provide Ukraine with $232 million in compensation for minor repairs to private houses and apartments affected by the Russian invasion under the Housing and People’s Empowerment (HOPE) project.
“The HOPE project will help thousands of Ukrainian families receive funds to begin repairing their homes before winter sets in. The project will also support the Government of Ukraine in laying the groundwork for a sustainable, inclusive, and green recovery – a huge task that will take time and significant international support. The World Bank is supporting Ukraine on its path to rebuild housing and other urban infrastructure,” said Antonella Bassani, World Bank Vice President for Europe and Central Asia, as quoted in the press release.
The initial financing of the project is $232 million, of which $70 million is a loan from the International Bank for Reconstruction and Development secured by a guarantee from the Government of Japan, and $162.5 million is a grant from the multidonor Trust Fund for Supporting the Recovery and Reform of Ukraine.
The current funding will help to reimburse the costs of repairing partial damage and repairs to 98,000 individual homes and 8,000 families in 160 apartment buildings in five regions. The press release notes that the program beneficiaries will receive compensation for the repairs.
Later, additional funding of up to $800 million is expected from the World Bank and partners in the form of loan guarantees, grants and other contributions, the statement said.
“As of February 2023, the total cost of damage to Ukraine’s housing sector was estimated at more than $50 billion. This project aims to help repair approximately two-thirds of the country’s damaged residential buildings that are considered suitable for repair,” the press release said.
The project will be launched by the Ministry of Communities, Territories and Infrastructure of Ukraine (Ministry of Reconstruction).
It is noted that the HOPE project is the fourth World Bank framework project approved in Ukraine this year.
It is estimated that 1.4 million housing units have been damaged by the Russian invasion, which is 7% of the total housing stock of 3.5 million people. At the same time, 87% of the damaged housing is apartment buildings, mostly in urban areas.
