EU financed actions in Ukraine

Together with European Union (EU), through the EU Delegation in Ukraine, Nefco has agreed to manage a range of actions funded by the EU to support Ukraine in urgent reconstruction and help strengthen the resilience of Ukrainian people.

Cooperation with EU to support urgent green recovery in Ukraine

Nefco has passed the EU Pillar Assessment and is eligible to manage funds and actions for the EU. Before Russia’s full-scale invasion, Nefco was working with three programmes funded by the EU’s Neighbourhood Investment Platform (NIP). These have now been partly repurposed, and new EU-funded actions have been established to support urgent recovery and reconstruction.

The most important aims of the EU-funded actions are to support Ukraine to rebuild the country’s infrastructure, support municipalities in accommodating internally displaced persons (IDPs), help Ukraine become more energy efficient and energy independent, and ensure European standards are applied in the supported activities. Recovery funding shall help to build back greener and better, and strengthen resilience, energy and food security for Ukraine, Europe and beyond.

The following programmes are currently under implementation:

Modernisation of critical water infrastructure

  • Through NIP Ukraine Water Modernisation Programme
  • 10 projects originally agreed
  • To modernise water and wastewater treatment systems and energy efficiency improvements of water and wastewater facilities in Ukrainian municipalities and improve the water quality and distribution services to thousands of Ukrainians.
  • EUR 3.4 million grant funding from the Neighbourhood Investment Platform (NIP), now repurposed.
  • First phase projects in are proceeding according to the original plans and financed with both Nefco loans and EU grants.
  • Second phase projects have been repurposed for recovery actions financed solely with EU grants.
  • One project has been repurposed to solid waste handling.

Energy efficiency in public buildings and street lighting in small municipalities

  • Through NIP Ukraine Energy Efficiency in Small and Amalgamated Municipalities Programme (NIP2)
  • 13 projects originally agreed, 6 projects continue toward implementation.
  • To modernise technology and improve energy efficiency.
  • EUR 4.8 million grant funding from the Neighbourhood Investment Platform (NIP), now repurposed:
    • First phase projects financed by already disbursed Nefco loan funds and EU grants.
    • Second phase projects repurposed to recovery actions financed solely with EU grants.

Repair and construction of critical infrastructure

  • Through EU Critical Infrastructure
  • 12 preselected communities
  • To provide basic municipal services such as district heating, clean water and wastewater for the inhabitants of severely damaged cities and urban villages in the Kyiv region, increasing reliability and security of water, heat and electricity supply and wastewater discharge.
  • EUR 50 million grant funding from the EU

Support for Internally Displaced Persons (IDPs)

EU support for Urgent Housing Needs for IDPs in Ukraine

  • 10 cities
  • To provide housing for IDPs by renovating and improving energy efficiency in existing public buildings in municipalities in Western and Central Ukraine.
  • EUR 19 million funding from the Neighbourhood Investment Platform, now repurposed to be fully grant financed.

Housing for Internally Displaced Persons and Rehabilitation of Liberated Cities in Ukraine

  • Divided into two components with 6 and 5 preselected cities, respectively.
  • To construct new buildings and recover damaged municipal facilities to accommodate IDPs.
  • EUR 100 million in grant funding from the EU.

Ronny Nilsson Senior Adviser
Swedish, English
Julia Shevchuk Chief Investment Adviser
Ukrainian, Russian, English

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