Ukraine recovery and reconstruction needs estimated at 349BN euro
The current cost of reconstruction and recovery in Ukraine amounts to $349 billion (349 billion euro), according to a joint assessment by the government of Ukraine, the European Commission and the World Bank, released on September 9.
“This figure is expected to grow in the coming months as the war continues,” the statement said.
The Rapid Damage and Needs Assessment (RDNA) presents the first comprehensive evaluation of war impacts across 20 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, the statement said.
European Commission President Ursula von der Leyen, said: “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,” Von der Leyen said.
“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 five billion euro 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,” she said.
Ukraine’s Prime Minister Denys Shmyhal said that only for the first stage, rapid recovery, $17 billion is needed, of which Ukraine needs $3.4 billion already this year.
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 US$97 billion (97 billion euro).
It was particularly high in the housing, transport, commerce and industry sectors. The destruction was concentrated in the Chernihivska, Donetska, Luhanska, Kharkivska, Kyivska, and Zaporizka oblasts.
The RDNA results are preliminary, and damage and needs should be considered as minimums, the statement said.
The report found that recovery and reconstruction needs across social, productive, and infrastructure sectors total US$349 billion (349 billion euro), which is more than 1.5 times the 2021 GDP of Ukraine.
Over the next 36 months the RDNA assesses that US$105 billion (105 billion euro) 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.
The government of Ukraine is looking at the specific needs across the different regions ahead of the winter. Based on the highest priorities, tailored recovery and reconstruction plans are being developed to guide a program in each area.
The World Bank and the European Commission confirmed their continued support for the government of Ukraine.
Given the ongoing war, there will be a need for future assessments of damage, loss and reconstruction/recovery needs in Ukraine. The Swiss State Secretariat for Economic Affairs (SECO) has committed financial support for this purpose, the statement said.
(Photo, of Kharkiv: Міністерство внутрішніх справ України)
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