Govt, European Commission, World Bank estimate Ukraine's needs for recovery and reconstruction at $349 bln

Govt, European Commission, World Bank estimate Ukraine’s needs for recovery and reconstruction at $349 bln

The Government of Ukraine, the European Commission, and the World Bank, in cooperation with partners, estimate that the current cost of reconstruction and recovery in Ukraine amounts to $349 billion.

“Ukraine is fighting for democracy and our common values. The EU cannot match the sacrifice Ukraine is enduring but we are mobilising all our instruments to address the most immediate needs, including for housing for internally displaced populations and to repair critical infrastructure. Since the start of Russia’s brutal and illegal war of aggression against Ukraine, the EU has mobilised 10 billion euro in financing, humanitarian, emergency and military assistance for Ukraine and another 5 billion euros in financing are in the pipeline. The EU will walk every step of the way with Ukraine to rebuild a democratic, independent and prosperous country on its path to the EU,” European Commission President Ursula von der Leyen said in a press release on the Commission’s website on Friday.

This figure is expected to grow in the coming months as the war continues.

The Rapid Damage and Needs Assessment (RDNA) presents the first comprehensive evaluation of war impacts across twenty different sectors following the Russian invasion. It also lays out the financing needs for a resilient, inclusive, and sustainable recovery and reconstruction and provides a roadmap for planning.

“With joint efforts, we have already started reconstruction in the de-occupied Ukrainian territories, but reconstruction requires a comprehensive approach and the mobilization of joint resources of the Ukrainian government and international partners. The assessment of the destruction and the identification of reconstruction needs creates a solid basis for the national Reconstruction Plan and is a prerequisite for effective financing. After all, only for the first stage, rapid recovery, $17 billion is needed, of which Ukraine needs $3.4 billion already this year,” Prime Minister of Ukraine Denys Shmyhal said.

The assessment covers the impacts of the war sustained between February 24 and June 1, 2022, and found that physical damage from the war reached over $97 billion (EUR 97 billion). It was particularly high in the housing, transport, commerce and industry sectors. The destruction was concentrated in Chernihiv, Donetsk, Luhansk, Kharkiv, Kyiv and Zaporizhia regions.

The report found that recovery and reconstruction needs across social, productive, and infrastructure sectors total $349 billion (EUR 349 billion), which is more than 1.5 times the 2021 GDP of Ukraine.

Over the next 36 months the RDNA assesses that $105 billion (EUR 105 billion) is needed to address urgent needs such as restoring education and health systems and infrastructure, preparing for the upcoming winter through restoration of heating and energy to homes, support to agriculture, and repair of vital transport routes. The safe management of debris and explosives, including landmines, also pose a substantial cost.

Fuente: interfax.com.ua

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