Ukraine Begins Implementing Emergency Loan Programme for Restoration of Eastern Regions

Ukraine Begins Implementing Emergency Loan Programme for Restoration of Eastern Regions

The EUR 200 million Emergency Loan Programme for the Restoration of Ukraine has started being implemented, Roman Chuprinenko, the European Integration Deputy Minister of Regional Development, Construction and Housing and Communal Services of Ukraine, said, the ministry’s press service reports.

He says that in the nearest time, the ministry will procure and appoint a contractor to begin works in the new construction season. The programme will involve, under the support from the European Investment Bank, the UN Development Programme, which will function as a technical coordinator and conduct monitoring of project implementation.

He also said that the loan would help local communities affected by the military conflict and hosting a great number of displaced persons to improve their social infrastructures and access of their population to public services.

“The first package of infrastructure restoration projects includes 69 projects in five eastern regions of Ukraine, with the total budget of EUR 21.9 million. Almost half of this amount will be appropriated to restore medical facilities, 35% will finance educational projects, 15% will be provided to accommodation projects and 3% are intended for other social facilities”, Roman Chuprinenko said.

Most of the projects will be implemented in Kharkiv Region (21 projects, EUR 8.5 million), Donetsk Region (17 projects, EUR 7.1 million) and Luhansk Region (26 projects, EUR 3.1 million).

He also said that the second tender bid of possible projects was announced in July 2016, and during the recent three months, almost 1,000 project applications were received.

Currently, there are over 800 projects with the total cost of about EUR 160 million which meet the programme requirements.

“The projects in Donetsk and Luhansk Regions will be fully financed by the state budget, while the projects in other regions will be co-financed by local budgets, at least at a rate of 20%”, he added.

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