World Bank allocates $232 mln to restore war-damaged housing of Ukrainians
The World Bank will provide Ukraine with $232 million in aid for emergency repairs of war-damaged housing, the press release says.
As part of the "The Housing Repair for Peopleʼs Empowerment (HOPE)" project, more than 100,000 Ukrainian families will receive help.
What is the problem?
According to World Bank estimates, almost 1.4 million housing units were affected by the full-scale war — thatʼs 7% of the total housing stock, home to 3.5 million people. Almost 87% of damaged housing is multi-apartment buildings, and four out of five damaged buildings are located in cities.
What is the solution?
As of February 2023, the total damage caused to Ukraine's housing sector exceeded $50 billion. The project will help repair almost two-thirds of damaged residential buildings that are suitable for repair.
How does it work?
As part of the "The Housing Repair for People Empowerment (HOPE)" project, more than 100,000 Ukrainian families will receive help to, for example, repair the roof or replace windows before the onset of winter. The money will be given to those whose houses do not need major repairs.
According to the bank's estimates, the $232 million will reimburse the costs of repairing partial damage to 98,000 houses and 8,000 families in 160 apartment buildings in five regions of Ukraine.
The initial financing of the HOPE project consists of a $70 million loan from the International Bank for Reconstruction and Development, guaranteed by Japan, and a $162.5 million grant from the multi-donor Trust Fund for Supporting the Recovery and Reform of Ukraine.
Subsequently, the World Bank and partners will provide additional financing of up to $800 million in loans, guarantees, grants, and other contributions.
The HOPE project is the World Bank's fourth framework project for Ukraine in 2023. It allows partners to quickly disburse funds to help Ukraine and can be scaled up if additional funding is needed.
Other projects provide emergency funding to help Ukraine in the areas of health, transportation, and energy. Since Russia's full-scale invasion of Ukraine began, the World Bank has provided more than $37 billion in emergency financing to support Ukraine.
As reported, the World Bank will become one of the key partners in Ukraine's recovery and finance three post-war reconstruction projects.
