The European Investment Bank (EIB) is considering providing funding of EUR 400 million for a pilot project aimed at constructing social housing in Ukraine, as reported by the press service of the Institute for Economic Research and Political Consulting (IER).
"Currently, negotiations are underway regarding the provision of EUR 400 million in funding, which will consist of a grant and a loan for the construction of public housing. This housing should be located in well-developed urban areas, with access to technical and social infrastructure," said Grzegorz Hajda, a senior sector economist at the EIB, during the event of the "Control of Expenditures for the Reconstruction of Ukraine" project, which focused on social housing issues.
He emphasized that the housing should be constructed using the best European practices, in accordance with energy efficiency standards and based on the principle of build-back-better.
The project envisions the construction of approximately 6,000 to 6,500 apartments. The EIB will select areas for social housing construction based on the needs of the regions and their interest in collaboration.
Additionally, discussions are ongoing regarding the conditions for renting the housing. Specifically, it is proposed to allocate social housing to employed Ukrainians earning at least the average salary, as well as to allow local authorities to transfer 20-30% of apartments for rent to individuals selected according to their own criteria, taking into account the necessary professionals in the region.
According to the expert, the project also includes seeking opportunities for the social housing sector to self-finance its operational activities and maintenance, in order to avoid the necessity of state funding for housing upkeep.
As indicated by the IER, at the beginning of 2022, there were only 3,000 social apartments in Ukraine, while the number of internally displaced persons (IDPs) reached over 5 million by the end of the year. According to the International Organization for Migration, as of October 2024, there are approximately 3.6 million internally displaced persons in Ukraine.
The "Control of Expenditures for the Reconstruction of Ukraine" project is funded by the European Union and is implemented in collaboration with the Center for Economic Strategy, IER, and the NGO "Technologies of Progress."