EU and IFC launch €25 million fund to rebuild Ukraine

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A new agreement between the International Finance Corporation (IFC) and the Energy Efficiency Fund of Ukraine will channel up to 25 million euros in EU funds to help homeowners associations restore war-damaged residential buildings, the organizations announced. on Monday.

The effort will support Ukrainian families in the midst of the ongoing war and increase the resilience of Ukraine’s residential sector. Since February 24, the conflict in Ukraine has substantially damaged or destroyed the homes of 2.4 million Ukrainians, according to the Ukrainian Ministry of Development of Communities and Territories.

The Kyiv School of Economics estimates the total number of affected homes in Ukraine to be up to 136,000 buildings or 40% of the total number of residential buildings, including nearly 16,000 multi-apartment buildings. As it stands, there is not enough public and private funding to rebuild the sector.

IFC will support the Energy Efficiency Fund’s Restoration Program by channeling EU grants to homeowners’ associations in Ukraine, covering the costs of restoring multi-family buildings that did not sustain structural damage.

The program will cover the replacement of windows, doors, roofs and walls, among other items, and IFC will also help the Fund with a portfolio of reconstruction projects and support grantees with the application process.

A €5 million pilot phase is being rolled out in Kyiv, Zhytomyr, Sumy and Chernihiv, larger cities in northern and central Ukraine that have come under increasing attacks in the past two months.

Speaking on this, Mr. Yehor Farenyuk, Director of the State-owned Energy Efficiency Fund, said: “This program launched by the Energy Efficiency Fund provides vital support to homeowners’ associations to help them restore buildings damaged by the Russian military aggression.

“This is substantial support for many war-affected Ukrainians, as the program will cover 100 percent of the cost of all materials and construction work. We are very grateful to our partners, the EU and the IFC, for their commitment and support, and we look forward to continuing our fruitful cooperation in this area.

“Reconstruction efforts in war-torn Ukraine cannot and must not stop,” said Ms. Rana Karadsheh, IFC’s Regional Director for Europe. “We are grateful to the EU for its continued assistance, allowing us to provide vital support to Ukraine during these difficult times. We are committed to supporting the Ukrainians and their efforts to restore the war-torn residential and economic sectors.

“The EU supports Ukraine in its fight against Russian aggression and stands with its people. We are happy to join forces with our trusted partners, the Ukrainian Energy Efficiency Fund and IFC, to help rebuild Ukrainian homes that were destroyed by Russia,” said Ms. Katarína Mathernová, Deputy Director General of the Directorate General of Neighborhood and Enlargement Negotiations and Head of Support Group for Ukraine in the European Commission”.

Since October 2019, the original Ukraine Energy Efficiency Fund Programme, led by IFC in partnership with the EU, has channeled grants worth nearly €15 million for energy-efficient renovations of 229 residential buildings in Ukraine, of which 109 are fully completed, with the remaining 120 projects continuing to implement energy-efficient retrofits in the midst of the war.

As part of IFC’s broader response to the war in Ukraine, in October IFC launched another EU-supported €25 million program to help municipalities renovate municipally owned buildings to house internally displaced persons.

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