14.07.2025 | News
The Mykolaiv region in Southern Ukraine is severely impacted by Russia’s brutal war. During the fourth annual Ukraine Recovery Conference (URC), in Rome, Nefco and the Danish Ministry of Foreign Affairs signed an agreement on a new contribution of DKK 338 million (approx. EUR 45.5 million) to further support already on-going reconstruction efforts in the Mykolaiv region in Southern Ukraine.
With Danish funding, Nefco also signed three new financing agreements with Mykolaiv city and the village of Domanivka for measures related to restoration of water infrastructure, solar power and substations for the district heating system. These recovery measures will have immediate tangible positive impacts in the region by ensuring residents’ access to clean drinking water and reliable electricity supply, and in this way strengthen local resilience while the war is going on.
Following a request by President Zelensky, when addressing the Danish parliament during a period of heightened tension in March 2022, Denmark assumed special patronage over the city and region of Mykolaiv that has been severely impacted by the war. Since then, this patronage has evolved into a unique multi-faceted partnership that covers several areas of cooperation. Denmark is committed to continue the support to reconstruction in Ukraine. In addition to Danish support on a national level, Danish support has been – and will continue to be – geographically focused on the Mykolaiv region. The underlying philosophy is that rebuilding should not wait for peace, thereby contributing to Ukraine’s resilience. With Danish funding, Nefco has already been implementing projects to improve water infrastructure in Mykolaiv.
The new funding, announced by Denmark’s Ministry of Foreign Affairs and Nefco during the Ukraine Recovery Conference in Rome, comprises a new Danish contribution of DKK 338 million (approx. EUR 45.5 million) for various reconstruction projects. The new allocation supplements the DKK 134 million (approx. EUR 18 million) previously committed by Denmark in Mykolaiv and surrounding areas.
Trond Moe, Managing Director of Nefco, emphasises the urgency of immediate reconstruction efforts and expresses strong appreciation for Denmark’s support.
“This is a significant contribution that enables us to take concrete actions to support Ukrainians and strengthen resilience amidst the ongoing war. Nefco is already implementing other Danish-funded reconstruction projects in Mykolaiv, and we are well-positioned to swiftly move forward with the newly agreed initiatives,” says Moe.
“We are proud to be a key partner in the engagement of the Ministry of Foreign Affairs in Mykolaiv City and Mykolaiv Region. At Nefco, we are committed to deploying the funds efficiently and transparently, with the aim of improving everyday life for the local population while ensuring climate resilience and initiating the green transition of the utilities sector,” adds Bo Nyhus, Investment Director at Nefco.
Through Nefco, the Danish funds will be used, among other things, to finance three new projects, also signed during the URC week:
- Restoration of the water supply to Domanivka, to ensure reliable and sustainable access to high-quality drinking water that meets Ukrainian and EU standards, with a grant of EUR 1.47 million
- Installation three solar power plants in Mykolaiv city, to enhance the sustainability and resiliency of the electricity supply, with a grant of EUR 7.2 million
- Upgrading of Mykolaiv’s district heating system, with individual heat substations and energy efficiency improvements to ensure operational efficiency, sustainability and increased reliability, even under wartime conditions, with a grant of 7.2 million.
“In Domanivka, we have already built four out of eight houses for internally displaced persons with the help of Danish funding. The new project will help to deliver water from the nearby village, also serving these houses. We are really grateful for the support from Denmark and Nefco to the Mykolaiv region and our village,” said Viktor Vlasiuk, Mayor of Domanivka.
“By signing the Grant Agreement with the City of Mykolaiv to improve the efficiency of the district heating system, we have already begun deploying the new Danish funds. Together with our partners in the Mykolaiv Region, we have also developed an extensive pipeline of new projects to be matured and prepared for implementation over the coming years. Nefco is in Ukraine for the long run – just as we have been for the past two decades,” says Nyhus.
The new contribution from Denmark, along with existing and continued support from other Nordic countries and the European Union, materially enhances Nefco’s activities under its Green Recovery Programme for Ukraine, which has now mobilised some EUR 400 million in support of building Ukraine back greener and better.
See also news by the Danish Ministry of Foreign Affairs (in Danish)
The agreements with Domanivka and Mykolaiv city are part of nine agreements Nefco signed at the Ukraine Recovery Conference in Rome. Nefco has been active in Ukraine for over 20 years and currently plays a key role in the country’s green recovery efforts by focusing on concrete actions by Ukrainian cities and utilities.
Nefco – the Nordic Green Bank, is an international financial institution (IFI) founded in 1990 by Denmark, Finland, Iceland, Norway and Sweden.
For further information, please contact:
Bo Eske Nyhus, Investment Director, Nefco
bo.nyhus@nefco.int, +358 10 6180 665
Josefin Hoviniemi, Vice President Communications, Nefco
josefin.hoviniemi@nefco.int, +358 50 464 6995