Ukraine will receive 9 million EUR from the German Government

Ukraine will receive 9 million EUR from the German Government

Ukraine will receive 9 million EUR from the German Government to construct social housing for internally displaced persons (IDPs) and to develop infrastructure (schools, kindergartens) in the towns, which have admitted IDPs. The corresponding Financing and Project Agreement was signed earlier today by Andriy Reva, Minister of Social Policy of Ukraine, Marion Kneesch, Head of Urban and Infrastructural Unit at KfW and Andriy Laktionov, Executive Director of Ukrainian Social Investment Fund. Ernst Reichel, Ambassador of the Federal Republic of Germany in Ukraine, and Lutz Horn-Haacke, Director of KfW Office in Ukraine, visited the signing ceremony.

The grant funds are provided by the Federal Ministry of Economic Cooperation and Development (BMZ) of Germany through KfW Development Bank. “Promotion of Social Infrastructure Development. USIF VI” Project will be implemented for four coming years. The grant funds will be directed towards Dnipropetrovsk, Zaporizhzhya, Kharkiv regions and some districts of Donetsk and Luhansk regions, which are under the control of Ukrainian Government. The new project will help to provide about 1000 IDPs with social housing.

“Now 1.5 million IDPs are registered in Ukraine. All these people lost their houses, jobs and found themselves in a very difficult situation. The state makes serious steps to help IDPs. Ukrainian Government produces numerous programs, searches for additional funds sources, arranges integration activities and creates new jobs for these people. In addition, to provide housing for IDPs in peaceful areas of Ukraine, we mobilize financial resources of our foreign partners. We highly appreciate the help of the German Government, which yet again provides funds to solve IDPs’ problems. It is also important that we have a strong partner in Ukraine, - Ukrainian Social Investment Fund (USIF), which is trusted by foreign donors. USIF has enough experience and qualification for implementation of international assistance projects, including projects that help IDPs with housing,” noted Andriy Reva, Minister of Social Policy of Ukraine.

“Since the beginning of the conflict in Eastern Ukraine, which had taken away shelters and normal life from so many people, the task of Germany was to help Ukraine in many fields with significant resources. Therefore, today it is a great pleasure for me to continue our cooperation with the Ministry of Social Policy of Ukraine andUkrainian Social Investment Fund,” said Ernst Reichel, Ambassador of Germany in Ukraine.

Ukrainian Social Investment Fund will act as the Project-Executing Agency and receive the German Government’ financing through the KfW Development Bank. For 18 years of its functioning, USIF has implemented more than 1200 projects in all regions of Ukraine. Now Fund constructs housing for IDPs inDnipropetrovsk, Zaporizhzhya, Kharkiv regions and in Lviv. It also renovates groups’ facilities in more than 40 kindergartens in Kyiv. USIF specializes in implementation of complex infrastructural projects in a social sphere with particular emphasis on energy saving technologies.

“Using the grant funds of the German Government, we will repair or build from scratch 10-12 multi-apartment buildings for IDPs within our new Project. Some nearby schools and kindergartens will be renovated as well. All works will be done quickly, transparently and in accordance with the German standards of quality and energy efficiency,” told Andriy Laktionov, Executive Director of Ukrainian Social Investment Fund.

“Being Ukraine’s reliable partner and advocating its interests in the European Union and Europe as a whole, Government of the Federal Republic of Germany and KfW closely monitor the situation in this country. It is clearly seen, that Ukraine advances in many areas, but still faces critical challenges, the majority of which are caused by military actions in Donbass region. One of the most painful challenges for Ukraine today is emergence of a number of internally displaced persons, who badly need help and support due to the loss of their jobs and housing. We understand that it would be difficult to provide necessary support to such a great number of internally displaced persons even for the country with much stronger economy. And that’s why we here today with an intention to land a helping hand to Ukraine and its most vulnerable people. We strongly hope, that in close co-operation with the Ministry of Social Policy of Ukraine and Ukrainian Social investment fund, our assistance will be most effective and productive,” mentioned Marion Kneesch, Head of Urban and Infrastructural Unit at KfW.

The Agreement, which was signed today, is a logical follow-up to the Project, which Ukrainian Social Investment Fund currently implements with a use of the previous financial contribution of the Government of Germany. Within the current Project three social hostels have been already opened in Melitopol. Until the end of 2018 more than 700 IDPs will have been provided with apartments or rooms in 14 renovated buildings.   

Germany has contributed 14 million EUR into the current Project. This financial contribution has been also provided by the Federal Ministry of Economic Cooperation and Development (BMZ) of Germany through KfW Development Bank.

KfW Development Bank is a branch of KfW Bankengruppe, the leader of the banking sector of Germany, which successfully promotes the development of the German economy, as well as the economic development of countries in transition and developing countries. KfW’s capital belongs to the Federal Republic of Germany and to the Federal Lands (States) of Germany.


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