Ukraine to rebuild infrastructure with support from Ukraine FIRST initiative

• New EU-backed programme to help Ukraine prepare large-scale infrastructure projects
• EBRD, EIB and European Commission provide total of €30 million for initiative, with more funding due from EU countries and donors
• Goal is to hasten reconstruction in Ukraine amid damage caused by Russian invasion.

Ukraine will receive extra European support for reconstruction through a new initiative to accelerate large-scale infrastructure projects in the country. The programme, called Ukraine FIRST, aims to ensure that projects receive funding and move ahead quickly.

The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB) and the European Commission announced the programme at the Ukraine Recovery Conference today in Rome. The three institutions are providing a total of €30 million to Ukraine FIRST – short for Ukraine Facility for Infrastructure Reconstruction– and European Union countries including the Netherlands, and Italy intend to provide additional funding.

Damage in Ukraine as a result of Russia’s full-scale invasion in February 2022 is estimated at over $524 billion. As it pursues EU accession, Ukraine is seeking to kick-start projects to rebuild everything from energy infrastructure and transport corridors to housing and essential public services like healthcare and education.

The new programme will cover preparations for public investment projects in Ukraine, providing technical assistance including feasibility studies, environmental assessments, cost estimates and procurement plans.

Ukraine FIRST has two components. One, managed by the EBRD, will pool donor contributions and provide grants to support project preparation carried out by international financial institutions (IFIs). The other, led by the EIB, will offer expert consultancy services such as feasibility studies, technical designs and procurement plans that can be used by partneFrs working on infrastructure projects. Both elements will work closely with the Ukrainian government’s Project Preparation Unit to ensure that priority projects are well developed and aligned with national needs.

Ukraine FIRST is part of a “Framework for Project Preparation” initiative developed by the Ukrainian government and international partners over the past year. The framework aims to improve coordination among Ukrainian ministries, international financial institutions and donors to push forward reconstruction plans.

Pilot projects have already been identified from the initiative’s Single Project Pipeline pilot list for both Ukraine FIRST and a parallel Ukraine Government Project Preparation Facility to prepare. Within Ukraine FIRST, the EBRD’s pilot project is a €160 million loan to state-owned energy company Ukrnafta, to help it build Ukraine’s energy resilience by supplying and installing 250 MW of dispersed gas-fired energy generation capacity around the country. The EIB will be providing technical support to define and prepare investments in the reconstruction and upgrading of the Odessa to Remi M-15 highway, working also in cooperation with the World Bank and potentially with the EBRD to improve this main transport link within the southern Odessa region, which is also an important route to boost connectivity between Ukraine and the EU, through Romania.