Germany to give Ukraine €52 million to construct housing for migrants

German state bank KfW will provide a loan amounting to 52 million euros for the plan to construct social housing for migrants in Ukraine.

The Ministry of Temporarily Occupied Territories and Internally Displaced Persons and KfW agreed on the terms of the program’s implementation.

The construction of social housing for internally displaced persons according to the “Restoration and Renewal of Municipal Infrastructure in Eastern Ukraine” program is meant to start in 2018, the ministry’s website indicates.

According to the plan, the preparatory work is meant to be completed by the end of 2017, especially the development of criteria for selecting the objects for construction. According to the criteria, local communities can submit applications for financing. In the final quarter of 2017, there are plans for the signing of an intergovernmental agreement between the governments of Ukraine and Germany regarding this project.

The KfW does not plan to limit itself only to Donetsk and Luhansk or the regions surrounding them, where most of the migrants are concentrated. It is open to projects in all of Ukraine’s territories. The primary criterion for selection will be the quality of the requested project and the ability of the community to support the maintenance of the constructed objects at an appropriate level.

In autumn 2015 a protocol was signed between the governments of Ukraine and Germany, according to which Berlin undertook to allocate 136 million euros. Ukraine will receive 48 million in the form of grants, and a further 88 million euros as a loan through KfW Bank. The funds are intended for the implementation of more than 20 projects, the largest of them being the construction of housing for forcibly displaced persons.

  Ukraine, Germany, Donbas


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