Together Ukraine – inclusive recovery for resilient communities (Together Ukraine)


Sector

Municipal infrastructure and services

Stream

Development and rehabilitation of municipal infrastructure of subnational governments

Entry into Portfolio

State level of SPP

Maturity level

83

General Information

Program Description

The Together Ukraine Programme supports Ukrainian authorities at the sub-national level, including local governments, in rebuilding infrastructure and supporting the delivery of public services at the local level, using inclusive processes and involving citizens, including in investment planning and monitoring of public services, thereby strengthening social cohesion. The programme will address the significant local investment needs identified in the Fourth Rapid Damage and Recovery Assessment (RDNA4), while strengthening the relationship between citizens and the state, with a focus on citizen-led, citizen-centered local development and recovery planning, including investment prioritization.  The programme will strengthen existing local and regional development policies, instruments and systems, allowing for increased public investment across the country as new financing opportunities and enabling conditions emerge. The program will also improve the ability of territorial communities to deliver public services in an open and transparent manner by scaling up a multi-sectoral model that (i) will empower territorial communities to improve investment planning at the local level in collaboration with civil society and the private sector; (ii) will create jobs through private sector initiatives; and (iii) will facilitate the exchange of experiences between territorial communities with different potential.  These efforts will aim to strengthen horizontal and vertical social cohesion and strengthen the broader social contract by ensuring that the state responds to the needs and priorities of communities. restore infrastructure and support the process of delivering public services at the local level in territorial communities using inclusive processes and with the involvement of citizens, thereby strengthening social cohesion.

Strategic Case

Program Goal

Main Goal: Improvement of infrastructure condition
Secondary Goal: Reconstruction of damaged/destroyed assets, Improvement of service quality, Modernization to comply with current standards, Implementation of innovations and energy-efficient solutions, Expanding access to goods and services, Modernization to comply with current standards
Problems: Insufficient funding for infrastructure and public service delivery at the local level. Limited capacity to implement investment programs and projects. Low level of citizen engagement in the planning processes for investment programs and projects at the local level. The full-scale war has created significant challenges in financing infrastructure and services for Ukrainian authorities at the local and regional levels, especially for local governments, including in the territories most affected by the war. As highlighted in the Fourth Rapid Assessment of Damage and Recovery Needs (RDNA4), the increase in damage to municipal property, including infrastructure, has led to a deterioration in the provision of public services at the local level. Local authorities are responsible for a wide range of services, infrastructure, recovery activities and programs, but even despite the rapid growth of local needs, local authorities face increasing constraints in their ability to meet them. Most local governments depend on subventions from the State Budget, but increased defense spending has led to some receiving smaller subventions. The financial burden on local communities is likely to increase: RDNA4 estimates that $6.9 billion will be needed over the next decade to restore and reconstruct municipal infrastructure and services alone, of which $4.9 billion will be for infrastructure reconstruction and $2.0 billion for service restoration, with needs concentrated in war-torn regions such as Donetsk, Zaporizhia, Luhansk, Kherson, and Kharkiv.

Strategic Relevance of the Program

Sector
Municipal infrastructure and services
Subsector
Development and Reconstruction of Subnational Infrastructure
Stream
Development and rehabilitation of municipal infrastructure of subnational governments
Strategic Document
State Strategy for Regional Development for 2021–2027
Task
Завдання 2 за напрямом “Стимулювання розвитку територій” Оперативної цілі 1. Забезпечення інтегрованого розвитку територій з урахуванням інтересів майбутніх поколінь Development and rehabilitation of municipal infrastructure of subnational governments

Program Objectives

Indicator
Baseline Value
Target Value

Number of communities in which damaged/destroyed infrastructure and public service delivery processes have been restored at the local level

0 units

150 units

Programme Sustainable Development Goals

Economic Case

Economic feasibility of the program

What are the main benefits expected from the implementation of the program for the economy, business, society, or individual industries?

Improving energy efficiency
Improving business conditions
Increasing employment levels, creating new jobs
Growth in production, market volumes of goods/services/investments
Reducing regional imbalances
Infrastructure development
Improving the quality of life of the population
Increase in budget revenues

Does the program objective provide for a contribution to the climate goal of mitigating the effects of climate change?

Reducing or avoiding greenhouse gas emissions
Reducing the use of fuel and energy resources

Does the program objective provide a contribution to the climate change adaptation objective: reducing the impact and/or reducing the vulnerability of an asset or population to one or more types of physical climate hazards?

No contribution is provided.

Does the programme objective provide for a contribution to the climate objective of sustainable use and protection of water and marine resources?

Increasing the efficiency of water resources use
Reducing the negative impact of urban and industrial wastewater discharges
Reducing drinking water pollution

Does the program objective provide for a contribution to the climate goal of transitioning to a circular economy?

Preventing or reducing waste generation

Does the programme objective provide for a contribution to the climate objective of pollution prevention and control?

Preventing or reducing emissions of pollutants into air, water or soil
Improving air, water or soil quality
Preventing or minimizing the negative impacts of the production, use or disposal of chemicals

Does the program objective provide for a contribution to the climate goal of protecting and restoring biodiversity and ecosystems?

No contribution is provided.

What social consequences are relevant for your program, after its implementation?

Enhancing public participation
Increasing employment levels
Improving living conditions
Improving access to basic services
Other social consequences
Reducing social inequality

Why is it advisable to implement projects in the format of one comprehensive program, and not separately?

Strengthening the overall impact through the interaction of individual projects within the program
Ability to simultaneously cover several interrelated aspects of a problem and ensure a systematic approach
Cost reduction through pooling of resources and centralized management
Implementing activities within a common or adjacent territory to achieve a more effective result
Ensuring coordinated planning, management and monitoring of projects within a single structure
The need to comply with legal requirements, government strategies or policies

How will the program help strengthen other economic processes or reforms?

Optimization of logistics or production chains
Promoting the development of related sectors of the economy
Support for the implementation of state or sectoral reforms
Stimulating digitalization and innovation

Program Components

Financial justification

Total estimated program cost

10'692'000'000 UAH

Estimated cost of program components

10'692'000'000 UAH

Component

Amount

Restoration of infrastructure and services at the local level

9'234'000'000 UAH

Strengthening social cohesion

972'000'000 UAH

Project management

486'000'000 UAH

Cost justification

Short description

Justification document

n/a

IBRD - Together Ukraine_UIF Application Part I_ 6.19.2025.pdf

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
To the documents
What potential funding sources can be mobilized on the basis of prior agreements or intentions to cooperate (if any)

The project "Together Ukraine - Inclusive Recovery for Resilient Communities (Together Ukraine)" according to the investment application submitted by the World Bank to the Board of Directors for the Investment Framework Program for Ukraine for a project guarantee, provides for a total cost of 220 million euros (Component 1: Strengthening Social Cohesion, budget 20 million euros; Component 2: Rehabilitation of Infrastructure and Services at the Local Level, budget 190 million euros; Component 3: Project Management, budget 10 million euros)

Management Case

Total program duration (months): 3

Approaches to project selection

Have approaches and criteria been defined for including public investment projects in the program, initiators of such projects, and their prioritization?

Yes

Organizational Measures

Program implementation (construction works)

24 months

Development of regulatory and legal acts on prioritization of PIPs that can be implemented within the framework of the project "Together Ukraine - Inclusive Recovery for Resilient Communities (Together Ukraine)"

3 months

Preparation for implementation (conducting tender procedures, obtaining permits, etc.)

3 months

Development of a draft regulatory legal act on the distribution of funds between local budgets/projects and activities (based on the results of prioritization and selection of projects)

2 months

Audit and evaluation implementation

2 months

Selection of projects for the program

2 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

Lack of co-financing from local budgets

Probability

Medium

Degree

Critical

Strategy

Avoidance

Risk

Specific and discriminatory changes in legislation (tax, customs, etc.)

Probability

Low

Degree

Considerable

Strategy

Acceptance

Risk

Changes in requirements for services/projects during the implementation of subprojects

Probability

Low

Degree

Minor

Strategy

Acceptance

Risk

Delay in receiving permit documents

Probability

Low

Degree

Considerable

Strategy

Avoidance

Risk

Exchange rate fluctuations

Probability

Medium

Degree

Considerable

Strategy

Acceptance

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level
15/08/2025SP-N-150825-7C0D28F3State SPPreparationInclude--
01/10/2025SPP-N-011025-94D251A1State SPPPreparationInclude-83