Ukraine: EIB provides €55 million to reconstruct social infrastructure

This article is published in association with European Investment Bank.

• The funding will enable Ukrainian communities to continue implementing 151 sub-projects in 2025 and beyond, focusing on schools, kindergartens, hospitals, social housing, heating and water systems and other social infrastructure.
• Backed by an EU guarantee, the funding is earmarked for the EIB’s Ukraine Recovery Programme.
• In 2024, several sub-projects were completed, including a sewer pressure collector in Zhmerynka, Vinnytsia Oblast, that was finalised on 25 December and will provide over 33 000 residents with reliable wastewater management and improved sanitation.

The European Investment Bank (EIB) has provided €55 million in EU guarantee-backed funds under the Ukraine Recovery Programme to reconstruct hospitals, social housing, educational facilities, heating, water and waste systems, and other critical social infrastructure in 2025 and beyond. The funding can be used for any of the 151 sub-projects allocated under the programme across Vinnytsia, Dnipropetrovsk, Zhytomyr, Kyiv, Kirovohrad, Mykolaiv, Odesa, Poltava, Sumy, Kharkiv, Cherkasy and Chernihiv oblasts. This contribution is part of the EIB’s Ukraine Solidarity Urgent Response package developed in close partnership with the European Commission, highlighting the European Union’s unwavering support for Ukraine’s recovery.

In 2024, several sub-projects were successfully completed under the programme, including a water supply facility in Bucha, Kyiv Oblast, two schools in Vinnytsia Oblast, a paediatric infectious disease department in Zhytomyr Oblast, and now a sewer pressure collector in Zhmerynka, Vinnytsia Oblast. The sewer collector was completed on 25 December at a cost of €526 000. It involved rebuilding a 2.64 km sewer pipeline with durable pipes and advanced sensors. This upgrade will ensure reliable wastewater transport for the next 50 years, benefiting over 33 000 residents – including 4 000 displaced people – by enhancing sanitation, public health and environmental protection.

The Ukraine Recovery Programme is a €340 million EIB framework loan supported by an EU technical assistance grant and aiming to help communities rebuild vital social infrastructure. It is being implemented by the Ministry for Development of Communities and Territories of Ukraine in cooperation with the Ministry of Finance, with local authorities managing recovery sub-projects and UNDP Ukraine providing technical assistance to support quick implementation.

EIB Vice-President Teresa Czerwińska, who is responsible for the Bank’s operations in Ukraine, said: “Together with our EU partners, the European Investment Bank remains steadfast in its commitment to Ukraine’s recovery and rebuilding. This €55 million disbursement under the Ukraine Recovery Programme will help communities restore critical infrastructure, renewing schools, hospitals, heating, housing, water and waste facilities, and other essential services for all. Despite the challenges of war, Ukraine continues to rebuild, and we are glad to support this effort.”

European Commissioner for Economy and Productivity, Implementation and Simplification Valdis Dombrovskis said: “The EU’s steadfast commitment to supporting Ukraine and its people in the face of Russia’s illegal and brutal war comes on every level: political, financial, military and humanitarian. It includes the reconstruction of small-scale community infrastructure as well. That is why we fully support this new €55 million Ukraine Recovery Programme disbursement for hospitals, schools, housing, heating and water systems, as well the opening of a small wastewater treatment plant in Vinnytsia Oblast. We look forward to continuing to work closely with Ukraine, the EIB and all other partners to support Ukraine further in meeting its needs.”

Deputy Prime Minister for Restoration of Ukraine — Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba said: “The EU’s support is critical to our efforts to rebuild key infrastructure across the country. This funding from the European Investment Bank will help us restore schools, hospitals and essential utilities, significantly improving the quality of life of millions of Ukrainians. Together, we are laying the foundation for a resilient Ukraine, where communities can rebuild and move forward despite the challenges of war.”

Ukraine’s Minister of Finance Sergii Marchenko said: “Rebuilding our cities and strengthening our economy are critical for Ukraine’s recovery. We appreciate the European Investment Bank’s funding of recovery programmes, which restore vital infrastructure and improve the well-being of our people. The EU’s steadfast support is essential as we work to rebuild and ensure a better future for our communities despite the challenges we face.”

UNDP Resident Representative in Ukraine Jaco Cilliers said: “At UNDP, we’re dedicated to empowering communities by leveraging our technical expertise and strategic partnership with the EIB to foster transparent and sustainable recovery. With the successful completion of several sub-projects under the Ukraine Recovery Programme, we’re working alongside Ukrainian municipalities and the government to rebuild resilient infrastructure that truly meets the needs of the people. Together, we’re striving to ensure a brighter, more inclusive future for all Ukrainians.”

Background information

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of the Global Gateway. We aim to support €100 billion of investment by the end of 2027, around one-third of the overall target of this EU initiative. With Team Europe, EIB Global fosters strong, focused partnerships, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to people, companies and institutions through our offices around the world.

 EIB recovery programme in Ukraine

The upgrade of the sewer pressure collector in Zhmerynka, Vinnytsia Oblast, was carried out under the Ukraine Recovery Programme, one of the European Investment Bank’s (EIB) multi-sectoral recovery framework loans. Overall, the EIB is investing in three recovery programmes totalling €640 million, complemented by up to €15 million in EU grants. These programmes empower Ukrainian communities to restore social infrastructure and improve living conditions for their people and the internally displaced persons they host. The Ministry for Development of Communities and Territories of Ukraine, jointly with the Ministry of Finance, coordinates and oversees the implementation of the programmes, while local authorities and self-governments are responsible for fully managing recovery sub-projects. The United Nations Development Programme (UNDP) in Ukraine provides technical assistance to Ukrainian communities in implementing recovery sub-projects on the ground along with independent monitoring to ensure transparency and accountability.