General Information
Program Description
The Ukraine Recovery Program III is implemented in accordance with the Financing Agreement between Ukraine and the European Investment Bank and is aimed at the restoration, reconstruction and improvement of critical and social infrastructure (including the restoration, construction and thermal modernization of public buildings and structures, reconstruction/rehabilitation of water supply, wastewater, district heating infrastructure, etc.) with priority for subprojects located in areas where critical social infrastructure has suffered significant damage or is under severe pressure due to the influx of IDPs and other related problems. Subprojects are implemented in the territory controlled by the Government of Ukraine by central government bodies, local state administrations, and local self-government bodies.
The selection and implementation of subprojects (public investment projects) within the framework of the Ukraine Recovery Program III is carried out in accordance with the requirements of the Financial Agreement and the legislation of Ukraine, including the Resolution of the Cabinet of Ministers of Ukraine dated 14.02.2025 No. 162 “On Approval of the Procedure and Conditions for Providing Subsidies from the State Budget to Local Budgets for the Implementation of Projects within the Framework of the Ukraine Recovery Program III”.
As a result of the implementation of the Ukraine Recovery Program III in communities where critical social and communal infrastructure has suffered significant damage and in communities that are under severe pressure due to the influx of IDPs, social and economic growth is expected through the restoration of such infrastructure, ensuring the provision of critical services to citizens at the appropriate level, creating conditions for their comfortable residence, development and economic activity, as well as the return of IDPs to their places of original residence.
Strategic Case
Program Goal
Strategic Relevance of the Program
Program Objectives
Number of communities in which social and communal infrastructure projects have been implemented
0 units
230 units
Economic Case
Program Components
Component ID
DREAM-1
Restoration, reconstruction and improvement of critical and social infrastructure
Justification
Restoration, construction and thermal modernization of public buildings and structures (secondary and preschool educational institutions, administrative buildings, ASN and CB, healthcare facilities (rehabilitation centers, cluster and supracluster hospitals), as well as construction of civil defense structures for public buildings; reconstruction/restoration of water supply, sewage, district heating infrastructure, etc.
Year
Amount
1
1'000'000'000 UAH
2
5'000'000'000 UAH
3
5'000'000'000 UAH
4
1'150'000'000 UAH
Financial justification
Total estimated program cost
12'150'000'000 UAH
Estimated cost of program components
12'150'000'000 UAH
Component
Amount, uah
Restoration, reconstruction and improvement of critical and social infrastructure
₴12'150'000'000
Sources and mechanisms of financial support for the implementation of programs.
Status
Funding mechanisms
Coverage, %
Investment
Reimbursable financing. Debt financing. Loans borrowed by the state from foreign governments, foreign financial institutions, and IFIs
100%
Justification document
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)
The main source of financing is the funds of the European Investment Bank within the framework of the Financial Agreement "Ukraine Recovery Program III" between Ukraine and the European Investment Bank, ratified by the Law of Ukraine dated 20.08.2024 No. 3905-IX (it is envisaged that the total cost of the Project is 250 million Euros.)
Management Case
Organizational Measures
Project implementation (construction works)
18 months
Conducting final monitoring, audit and evaluation of the program
6 months
Organizational measures (preparation of a package of documents) to receive a tranche from the EIB
2 months
Project selection according to defined conditions and criteria
2 months
EIB project approval
2 months
Preparation of projects for implementation (conducting tender procedures, obtaining permits)
2 months
Obtaining funding for the relevant budget period (Law of Ukraine on the State Budget for the relevant year)
1 months
Approval (amendments) of the Procedure and Conditions for Providing Financing (including the Procedure and Conditions for Selecting Projects)
1 months
Adoption of a Government decision on the distribution of funds between projects
1 months
Amendments to regulatory legal acts (if necessary)
1 months
Development and approval of tender documentation for projects that do not meet the requirements and features specified by the EIB
1 months
Conclusion of Agreements on the transfer of loan funds between the Ministry of Development, the Ministry of Finance and the final beneficiaries of the project
1 months
Announcement of a call for project submissions (there may be several calls)
1 months
Risk Assessment
Risk
Probability
Degree
Strategy
Risk
Specific and discriminatory changes in legislation (tax, customs, etc.)
Probability
Low
Degree
Considerable
Strategy
Acceptance
Risk
Changing requirements for services/projects during the implementation of subprojects (PIP)
Probability
Low
Degree
Minor
Strategy
Acceptance
Risk
Lack of co-financing of local budgets for VAT repayment
Probability
Medium
Degree
Critical
Strategy
Avoidance
Risk
Delay in receiving permit documents
Probability
Low
Degree
Considerable
Strategy
Avoidance
Risk
Exchange rate fluctuations
Probability
Medium
Degree
Considerable
Strategy
Acceptance