The Ministry  for Communities and Territories Development of Ukraine has started the selection of projects within the framework of the “Ukraine Recovery Program” in accordance with the Financial Agreement between Ukraine and the European Investment Bank (EIB). The total amount of the first selection projects is up to €200 million.

“Projects should relate to the restoration of vital objects for people. In particular, the renewal or construction of new medical facilities, educational facilities, healthcare centers, as well as major repairs and reconstruction of critical infrastructure and houses for internally displaced persons and those who lost their homes due to the war,” said Oleksiy Chernyshov, Minister for Communities and Territories Development of Ukraine.

Conditions of participation in the selection:

• communal ownership of the object, for the financing of which the subvention is involved;
• co-financing from local budgets and other sources, not prohibited by law, to cover the costs of paying taxes and fees, including value added tax, currency conversion commissions, insurance, copyright supervision, etc;
• calendar plan for project implementation should cover from one to three years;
• facilities financed by the subvention remain in the communal ownership (common ownership) of the respective municipalities and are used for their intended purpose for at least 20 years from the date of completion of the project implementation;
• purchase or privatization of land, buildings, and premises is prohibited at the expense of the subvention;
• during the development of project documentation at the local level and at all stages of project implementation, the public interests of key parties in the local municipality (vulnerable population groups, public organizations, medical, educational and social services) must be taken into account;
• ability of local self-government bodies to ensure further maintenance at the expense of local budgets and other sources not prohibited by law of their facilities, financed with the use of subventions.

Local self-government bodies, local executive bodies of village, settlement, city councils of municipalities must submit proposals to MinRegion by September 2.

More details about the selection are available at the link https://bit.ly/3oOX7nK.

Note that at the end of 2021, the Government approved the procedure and conditions for providing subventions from the state budget to local authorities for the implementation of projects within the framework of the “Ukraine Recovery Program”.

The relevant subvention is provided on an irrevocable basis to municipalities within the framework of the Financial Agreement between Ukraine and the European Investment Bank. In accordance with this agreement, it is envisaged to attract 340 million euros to finance activities aimed at the implementation of projects for the restoration of social infrastructure, housing and communal facilities, etc. in the regions affected by military actions, as well as in those that received the largest number of internally displaced persons.

Earlier, Minister for Communities and Territories Development of Ukraine Oleksiy Chernyshov, annoounced that the EIB allocated 1.59 billion euros to Ukraine for the restoration of damaged infrastructure and critical projects. In particular, the funds will be used for the restoration and modernization of electricity, heat and water supply networks, residential and communal infrastructure facilities damaged as a result of hostilities.