Gov’t endorses attraction of $100 million from the IBRD for the "Eastern Ukraine: Reconstruction, Reunification and Revival" project

Cabinet of Ministers at its meeting on September 2  agreed to raise a loan totalling $100 million from the International Bank for Reconstruction and Development (IBRD) for the project "Eastern Ukraine: Reunification, Reconstruction and Revival" and determined the composition of the Ukrainian delegation to participate in negotiations with the bank.

The Government authorized Deputy Prime Minister of Ukraine, Minister for Reintegration of the Temporarily Occupied Territories Oleksii Reznikov to sign a loan agreement with the IBRD.

The project envisages the thorough overhaul of about 183 km of roads in Luhansk region, which are key transport corridors in the region, and attracting investment to restore agriculture through the implementation of certain agricultural sub-projects aimed at eliminating the consequences of Russia's armed aggression for agriculture in Luhansk region controlled by the Government of Ukraine.

The project aims to increase economic opportunities, cohesion and inclusion in the socio-economic life of the communities affected by Russia’s aggression through leveraging investment in local infrastructure.

As part of the preparation of the project, the Ministry for Reintegration of the Temporarily Occupied Territories has developed framework documents on environmental and social management, labour-management procedures, as well as the procedure for expropriation of land and other real estate located on them, which will be implemented during the project.

The loan is provided for 27 years at 0.25% per annum, the first 12 years - credit grace period.