The purpose of the project:
Infrastructure improvement
Key spending unit
Ministry of Development of Communities, Territories and Infrastructure of Ukraine
Functional classification of expenditures and budget crediting
0610 - Житлове господарство
Target priority of the government
020300 - Відновлення/забезпечення житлом
Score
5.257571
Basic data
Problems
Current status, description of problems and needs for their solution
According to estimates in the updated Rapid Assessment of Damage and Recovery Needs (RDNA3) for the period from February 24, 2022 to December 31, 2023, the housing sector is one of the sectors most affected by the military aggression of the Russian Federation (37 percent). The size of the damage is 55.9 billion US dollars, the losses are 17.4 billion US dollars, and the needs for restoration are 80.3 billion US dollars. As for the geographical distribution of damaged housing, more than 75 percent of the cost of the damage is concentrated in four regions: Donetsk (30%), Kharkiv (27%), Luhansk (12%), and Kyiv (8%); another 18 percent are in the Mykolaiv (4%), Chernihiv (4%), Kherson (4%), Zaporizhia (3%) and Dnipropetrovsk (3%) regions. More than a quarter of the damaged objects were destroyed (547,010 units), and the other three quarters were partially damaged.
The project will provide access to the housing stock, ensure citizens' access to damaged housing, review and improve the legal framework in the housing sector, support and develop the capacity of local self-government bodies to plan their recovery and strengthen their resilience in responding to crisis situations in the future . Also, one of the components of the project is aimed at strengthening the institutional capacity of the responsible executor of the project. In addition, the implementation of the project will make it possible to: implement a new financial and investment mechanism of state support, aimed at ensuring the maximum efficiency of the use of funds for the restoration of the damaged housing stock; create conditions for the stable operation of enterprises in the construction industry, the preservation of jobs and the support of the economy; to increase the capacity of identified pilot territorial communities to plan their own recovery and further development.
A detailed description of the project goal and the way to achieve it
The purpose of the Development Project is to increase the access of households to repaired housing units that were damaged as a result of the invasion of the Russian Federation into Ukraine, in particular to ensure the payment of compensation for 98,000 households for repair work by December 31, 2025, as well as to ensure the design and capital repair of 160 partially damaged multi-apartment buildings houses
Coordination of the project with strategic documents
National Strategy for Regional Development of Ukraine
The project corresponds to Operational objective 2 "Conservation of the natural environment and sustainable use of natural resources, strengthening the development opportunities of territories that require state support (macro- and micro-level)", tasks in the direction of "Restoration and development of territories, structural restructuring of the economies of regions affected by armed aggression of the Russian Federation against Ukraine" of the State Strategy of Regional Development for 2021-2027.
Demand for the service and its dynamics
Category
Year
Rating
Measure
Annual demand for services/infrastructure
2023
2
mln units
Project indicators
Indicator
Base value
Target value
Number of people to use the service
0
1000
Risk assessment
Risk
Category
Degree
Probability
Strategy
Social risks: There is a risk for certain vulnerable groups such as IDPs, low-income households, female-headed households, persons with disabilities and the elderly, which may lead to social tensions.
Social risk
Minor
Low
Reduction
Political and management risks: at the time of project preparation, Russia's invasion of Ukraine mostly affected areas in the east and south of Ukraine. However, further unpredictability and potential consequences for the ability of the Ukrainian government to perform its core functions create some uncertainty. This may lead to delays in project implementation.
Political risk
Considerable
Medium
Acceptance
Macroeconomic risks: the results of the project will depend on the sufficient budget allocation of the government of Ukraine for the project's activities.
Economical risk
Considerable
Medium
Reduction
Project plan
Implementation
800 days
