Brussels, Belgium, November 28, 2022—A new agreement between IFC and Ukraine's Energy Efficiency Fund will channel up to €25 million in EU funds to help homeowners' associations restore war-damaged residential buildings, the organizations announced today. The effort will support Ukrainian families amid the ongoing war and boost the resilience of Ukraine's residential sector.
Since February 24, the war in Ukraine has substantially damaged or destroyed the homes of 2.4 million Ukrainians, according to the Ministry for Communities and Territories Development of Ukraine.
The Kyiv School of Economics estimates that the total number of the affected housing stock in Ukraine is up to 136,000 buildings or 40 percent of the total number of residential buildings, including almost 16,000 multi-apartment buildings. As it stands, there is not enough public and private financing to rebuild the sector.
IFC will support the Energy Efficiency Fund's Restoration Program by channeling the EU grants to homeowners' associations across Ukraine, covering the costs of restoring multifamily buildings that did not suffer structural damage. The program will cover the replacement of windows, doors, roofs, and walls, among other elements. IFC will also help the Fund with a pipeline of reconstruction projects as well as support beneficiaries with the application process.
A €5 million pilot phase is being rolled out in Kyiv, Zhytomyr, Sumy, and Chernihiv, larger cities in northern and central Ukraine that have come under increased attacks over the last two months.
"This program launched by the Energy Efficiency Fund provides vital support to homeowners' associations to help them restore buildings damaged by Russia's military aggression," said Yehor Farenyuk, director of the state-owned Energy Efficiency Fund. "This is substantial support for many war-affected Ukrainians since the program will cover 100 percent of the cost of all construction materials and work. We are very grateful to our partners — the EU and IFC — for their engagement and support, and we hope to continue our fruitful cooperation in this area."
"Rebuilding efforts in war-torn Ukraine cannot and should not be stalled," said Rana Karadsheh, IFC's Regional Director for Europe. "We are grateful to the EU for their ongoing assistance, enabling us to provide vital support to Ukraine during these challenging times. We are committed to supporting Ukrainians and their efforts to restore residential and other economic sectors devastated by the war."
"The EU stands with Ukraine as it fights off the Russia's aggression and supports its people. We are happy to join forces with our trusted partners Ukraine's Energy Efficiency Fund and IFC to help rebuild Ukrainian's homes that were destroyed by Russia," said Katarína Mathernová, Deputy Director General of the Directorate General for Neighbourhood & Enlargement Negotiations and Head of the Support Group for Ukraine at the European Commission.
Since October 2019, the original Ukraine Energy Efficiency Fund Program, led by IFC in partnership with the EU, has channeled grants worth nearly €15 million into energy-efficient renovations of 229 residential buildings in Ukraine, of which 109 are fully completed, with the remaining 120 projects continuing to implement the energy efficiency modernizations amid the war.
As part of IFC's broader response to the war in Ukraine, in October, IFC launched another €25 million EU-supported program to help municipalities to renovate municipally owned buildings to host internally displaced people.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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