Ukraine presented a $750 billion recovery plan
In Lugano, Switzerland, Ukraine presented a post-war recovery plan worth more than $750 billion. It will include 850 projects to rebuild the country.
It is stated on the Recovery Plan's website and in the presentation of the plan in Lugano, the EP writes.
The plan is designed for ten years, from 2023 to 2032, and will happen in two waves. The first will last from 2023-2025, during which most of the mentioned projects (580) are planned to be implemented. These three years will cost more than 350 billion dollars.
The second wave will contain fewer projects but will require more financing, more than 400 billion dollars. At the same time, the plan stipulates that the Ukrainian economy will grow by 7% yearly during these ten years.
The most expensive projects are the restoration and modernization of housing and the infrastructure of the regions, which will require 150-250 billion dollars, and the expansion and integration of logistics with the EU. It will cost 120-150 billion dollars. The need for energy independence and the green course reaches 150 billion dollars.
60–80 billion dollars will be required for macro-financial stability and 75 billion dollars for ensuring competitive access to capital. Fifty billion dollars are necessary for the economy's value-added sectors development and the same amount for the defense sector.
Among other large-scale programs are the restoration and modernization of social infrastructure and the development of cultural and sports systems, the financing of which is estimated at 20-35 billion dollars each.
It is noted that part of the funds is urgently needed in 2022. These are programs for ensuring macro-financial stability, regional modernization, and ensuring access to finance and defense, and security. Except for the defense and security sphere, 60-65 billion dollars have already been provided or allocated for Ukraine.
The total amount of 750 billion dollars is planned to be financed as follows:
- $250-300 billion from partnership grants for defense, critical emergency funding, reconstruction of housing and other facilities, infrastructure development as part of the EU, etc.
- $200-300 billion in credit funds from partners, which will finance infrastructure modernization, energy projects, support of the financial system, and co-financing of private investments.
- $250 billion thanks to private investment in infrastructure projects, value-added sectors, and other commercially viable investments.