Program for the comprehensive restoration of settlements, microdistricts and neighborhoods of 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

60

General Information

Program Description

The full-scale war caused large-scale destruction in Ukraine, affecting every sphere of life - from housing to social, educational, energy, and medical infrastructure. Therefore, recovery should not be fragmentary, but comprehensive - one that takes into account the needs of communities, preserves the architectural logic of the environment, integrates new standards (energy efficiency, barrier-free, digitalization) and creates a basis for long-term sustainability. The program is designed to help implement the best practices obtained by Ukraine in 2022-2025 from recovery in relevant communities, settlements, microdistricts and neighborhoods for a cross-sectoral approach to recovery and high-quality harmonious development of infrastructure and social, medical, educational, economic and other sectors of the economy. To qualitatively simplify the situational analysis, a pool of best practices has been formed that will be included in this program. And the geography of the project will allow us to flexibly respond to the challenges associated with the war in Ukraine.

Strategic Case

Program Goal

Main Goal: Improvement of infrastructure condition
Secondary Goal: Meeting growing demand, Ensuring inclusiveness and equal opportunities, Expanding access to goods and services, Implementation of innovations and energy-efficient solutions, Contribution to climate or environmental goals, Reducing territorial or social disparities, Modernization to comply with current standards
Problems: The full-scale aggression of the Russian Federation has caused the destruction of hundreds of thousands of infrastructure facilities throughout the territory of Ukraine. As a result of shelling, temporary occupation, and hostilities, not only individual buildings were damaged, but entire settlements, neighborhoods, and blocks — destroyed residential areas, social and cultural facilities, transport infrastructure, medical institutions, schools, and supply networks. In these conditions, fragmented or narrowly focused restoration is unable to ensure sustainable restoration of community life. The problems are exacerbated by factors such as: demographic outflow; lack of financial resources on the ground; lack of integrated spatial planning; the need for modernization according to energy efficiency, accessibility, and digitalization standards. The response to these challenges is the initiative of the Program for the Comprehensive Restoration of Settlements, Neighborhoods, and Blocks of Ukraine, which provides for a systemic, cross-sectoral approach to reconstruction. The program is based on best practices that have already been tested in communities within the framework of CMU resolutions No. 251, No. 412, as well as thanks to the eReconstruction tools, local pilot projects (such as the comprehensive reconstruction of Borodyanka in the Kyiv region), supported by the Restoration Agency, regional administrations, and international partners. As part of these initiatives, the following have already been implemented: Tens of thousands of residential and public infrastructure facilities have been restored; Barrier-free routes, digital ASCs, and temporary urban parks have been implemented; Standard reconstruction projects for schools, kindergartens, and medical centers have been developed; Approaches to zoning territories taking into account security and logistics have been implemented. The new program provides for scaling this successful experience to other territories of Ukraine — communities, villages, towns, cities, and neighborhoods that require comprehensive reconstruction after destruction. Each new recovery area will be adapted to the local context, but according to common principles: systemicity, inclusion, safety, sustainability, spatial planning, community participation. According to RDNA4, the recovery of Ukraine will require at least $ 486 billion, and it is such programmatic initiatives that will allow investors, donors, authorities and communities to act within a single vision and methodology.

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

Digitalization of services in communities (administrative, % of total services)

20 %

80 %

Restoration of medical infrastructure (% of the number of institutions)

50 %

95 %

Shelter coverage (% of population)

30 %

95 %

Restoration of transport infrastructure (modernized bridges and roads, % of pre-war level)

35 %

90 %

Housing stock restoration (% of pre-war volume)

40 %

90 %

Creation of public spaces (equipped urban parks and modern public spaces, % of population)

10 %

70 %

Restoration of educational infrastructure (% of the number of institutions)

55 %

85 %

Energy efficiency of buildings (Average heat consumption kWh/m² per year)

240 kW

120 kW

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
Other benefits
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?

Wind-related threats (change in wind regime; cyclone, hurricane, typhoon; storm, including blizzards, dust and sandstorms; tornado)
Threats associated with solid masses (coastal erosion; soil degradation; soil erosion; solifluction; avalanche; landslide; subsidence)
Temperature-related threats (changes in air, fresh water, seawater temperatures; heat stress; temperature fluctuations; heat waves; frost; forest fire)
Threats related to water resources (changes in the structure and types of precipitation (rain, hail, snow/ice); precipitation or hydrological variability; saltwater intrusion; sea level rise; water stress; drought, heavy precipitation (rain, hail, snow/ice); floods (coastal, river, pluvial, groundwater).

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?

Increasing the use of by-products and secondary raw materials, including by increasing the recyclability of products or waste
Reducing the content of hazardous substances and replacing substances of particular environmental concern in materials and products throughout their life cycle
Minimizing incineration and avoiding landfilling of waste
Development of waste management infrastructure
Reducing the use of primary raw materials
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?

Nature conservation and biodiversity
Sustainable land use and management of land resources
Sustainable forest management

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
Other

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
Deepening integration into international economic processes
Stimulating digitalization and innovation
Other

Program Components

Financial justification

Total estimated program cost

216'000'000'000 UAH

Estimated cost of program components

108'000'000'000 UAH

Component

Amount

Transport and engineering infrastructure

15'000'000'000 UAH

Program coordination and management

0 UAH

Social infrastructure

15'000'000'000 UAH

Energy and environmental sustainability

3'000'000'000 UAH

Social inclusion and communities

0 UAH

Monitoring, evaluation and reporting

0 UAH

Housing infrastructure

75'000'000'000 UAH

Institutional and regulatory support for the program

0 UAH

Additional expenses related to program preparation and implementation

108'000'000'000 UAH

Implementation costs

Year
Amount

1

54'000'000'000 UAH

2

54'000'000'000 UAH

Cost justification

Short description

Justification document

n/a

Justification Document_Comprehensive Recovery Programs.pdf

Sources and mechanisms of financial support for the implementation of programs.

Status
Funding mechanisms
Coverage, %

Investment

Non-repayable financing. Grant financing for projects initiated by a state unitary enterprise or a business company, more than 50% of shares (stakes) of which are state-owned (excluding banks). Grant agreements and charitable contributions.

20%

Non-repayable financing. Direct budget financing. Direct expenditures from the state budget (public procurement).

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 Comprehensive Recovery Program is expected to be financed primarily from the State Budget of Ukraine. This is a coordinated approach, which is confirmed by the practice of implementing two current government programs (Resolution No. 251 and Resolution No. 412). Given the scale and complexity of the tasks, the program will be broader in nature and will integrate the best practices obtained in the process of community recovery in 2022–2025. Additionally, in order to enhance the effect and accelerate the implementation of measures, it is planned to attract grant resources from international donors and charitable contributions in the amount of up to 20% of the total cost of the program. Such agreements are already being discussed with Ukraine's partners, including the EU, the World Bank, the EBRD and a number of international development agencies. It is important to emphasize that the initiative to create the Program has been agreed with the Ministry of Recovery and is being implemented in close cooperation with the Agency for Recovery and Infrastructure Development of Ukraine, which has already demonstrated its ability to high-quality coordination and implementation of large-scale projects. This format ensures the appropriate level of state responsibility, transparency, and efficiency in the use of funds, and also builds the trust of international partners.

Management Case

Total program duration (months): 2

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

Active implementation (Implementation of projects in housing, social, transport and energy infrastructure, attraction of grant funds)

18 months

Final stage (Monitoring, evaluation of results, generalization of best practices, preparation for scaling the program)

6 months

Preparatory stage (Formation of the institutional base, creation of a management office, methodological recommendations for communities, launch in DREAM)

6 months

Risk Assessment

Risk

Probability

Degree

Strategy

Risk

lack of suppliers of modern materials or technologies

Probability

Low

Degree

Considerable

Strategy

Acceptance

Risk

complexity of infrastructure design and integration

Probability

Medium

Degree

Critical

Strategy

Avoidance

Risk

risk of environmental damage during restoration

Probability

Low

Degree

Considerable

Strategy

Reduction

Risk

shortage of funds or delays in budget financing

Probability

Medium

Degree

Critical

Strategy

Reduction

Risk

risks associated with military operations and proximity to the front

Probability

Medium

Degree

Critical

Strategy

Acceptance

Risk

failure of implementation deadlines or inconsistency between performers

Probability

Medium

Degree

Critical

Strategy

Avoidance

Risk

changes in the regulatory or legislative environment

Probability

Medium

Degree

Considerable

Strategy

Transfer

Risk

inflation, rising costs of materials and work

Probability

Medium

Degree

Considerable

Strategy

Transfer

Risk

insufficient community support or conflicts of interest

Probability

Low

Degree

Considerable

Strategy

Reduction

Program Approval History

DateDecision NumberPortfolioProgram StatusDecisionReasonsMaturity level
17/08/2025SP-N-170825-677A33F5State SPPreparationInclude--
01/10/2025SPP-N-011025-4CEF24F2State SPPPreparationInclude-60