Communities to gain access to EUR 100 million from EIB for reconstruction projects

The Cabinet of Ministers of Ukraine has approved a resolution enabling the allocation and use of the second tranche of financing from the European Investment Bank (EIB) amounting to EUR 100 million.

This decision allows the transfer of subventions from the state to local communities. These funds will become available to finance reconstruction projects under the Ukraine Recovery Programme III (Tranche B) and, for the first time, will be disbursed under the guarantees of the Ukraine Facility financial instrument.

The funds will be directed towards reconstruction projects for social and critical infrastructure facilities damaged as a result of the armed aggression by the russian federation. This opens new opportunities for the repair of schools, kindergartens, hospitals, housing and communal facilities, and more.

“This is a direct investment in the recovery and resilience of Ukrainian communities. Our priority is the most effective transformation of these resources into key social facilities: rebuilding schools and hospitals, creating barrier-free environments, and modernising heating systems. From now on, local authorities have all the necessary tools to immediately begin implementing these projects. Our strategic goal remains unchanged: through infrastructure development, we aim to preserve, enhance, and unlock the human capital and potential in every Ukrainian community,” stated the Deputy Prime Minister for Restoration and Minister for Communities and Territories Development Oleksii Kuleba.

The new version of the Procedure and Conditions clearly regulates the application of the Ukraine Facility instrument, ensuring transparency and efficiency in the use of international partners’ funds at the local level.

Background

The total financing under the Ukraine Recovery Programme III amounts to EUR 250 million. The first tranche of EUR 100 million was ratified in August 2024.