Background

Overcoming the consequences of the armed conflict in eastern Ukraine that began in 2014 and which was further exacerbated by the invasion of 2022 remains a key priority of the EU’s work in Ukraine. Upon request from the Government of Ukraine, the European Investment Bank (EIB) provided funding for the Ukraine Early Recovery Programme (UERP) and Ukraine Recovery Programme (URP) – framework loan agreements amounting to Euro 200 and 340 million respectively, targeting early recovery investments in critical municipal infrastructure. The main goal of these programmes is ensuring decent living conditions for internally displaced persons (IDPs) and the local communities that host them. UERP commenced in September 2015, whereas URP, the logical continuation of the previous phase, started in December 2021. The programmes are being implemented within the frameworks of the respective Financial Agreements between Ukraine and the EIB.

On 16 December 2016, the EIB, in partnership with Ukraine’s Ministry of Regional Development, Construction and Housing, and Communal Services, signed a Technical Assistance Cooperation Agreement to facilitate the UERP implementation. The agreement will ensure the achievement of the following results: transparent and optimal utilization of the loan funds, which are disbursed for the UERP implementation, that will lead to the efficient infrastructure modernization and increased quality of life of the IDPs and host communities affected by the conflict in the Eastern Ukraine.

According to the agreement, the United Nations Development Programme (UNDP), via the Technical Assistance Project (TA), supports the UERP implementation and helps the targeted stakeholders (local authorities and self-government, communities’ executive bodies, state-owned and communal enterprises) to better plan, implement and monitor recovery projects, including through the capacity development of its final beneficiaries in design and development of sub-projects, procurement and contracting, social mitigation and local governance. In December 2021, the UNDP technical assistance was expanded to a new programme – the URP.

About the Technical Assistance Project

The UNDP TA Project is an essential part of the UN Recovery and Peacebuilding Programme (UN RPP), supporting the comprehensive restoration of conflict-affected infrastructure, strengthening community security and social cohesion, as well as supports the economic recovery of communities and the further implementation of decentralization and healthcare reforms.

The overall objective of the UNDP TA Project is to support the proper implementation of the UERP/URP through provision of effective comprehensive onsite sub-projects monitoring and developing the capacity of the final beneficiaries. UNDP TA experts provide consultative support at all stages of the project cycle, including, but not limited to, planning, design, engineering, procurement and monitoring. A special emphasis is devoted to improving local governance, enhancing community engagement in the decision-making and preventing fraud and corruption.

The UNDP TA Project also applies a local participatory approach, in accordance with a Social Management and Stakeholders Engagement Plan, fostering the involvement of different stakeholders and local communities in the UERP/URP implementation.

To this end, UNDP has established a regional Group and decentralized Technical Assistance Units which serve as resource centres for final beneficiaries and local stakeholders in the target oblasts covered by the programmes.

Geographical coverage of programmes may be adjusted considering the destabilizing factors in Ukraine as well as the safety and security situation in certain territories of Ukraine affected by war.

Main activities

The UNDP TA implementation results are focused on delivering of the assigned duties in the following sectors:

1. Engineering and construction: technical monitoring, design checks and recommendations on design adjustments, on-site monitoring during each construction phase, including spot checks of sub-projects, and provision of trainings and consultative support on engineering and technical issues.

2. Procurement and finance: Loan Fund Transfer Agreements and Tender Dossiers check, unit costs analyses, price comparison and cost-increasing factors analyses, tender procedures and contractual documentation overview (where applicable), training and consultative support on financial and procurement issues.

3. Anti-corruption: prevention, response and mitigation to corruption, fraud, money laundering and other related risks at all stages of the subprojects’ implementation, monitoring of risks at the stage of construction works, ensuring proper institutional capacity of the final beneficiaries by provision of pertinent training services, informational and advisory support.

4. Social management and stakeholder engagement: support to the development and implementation of Social Management Plans, including environmental and social impacts and risks analyses, fostering stakeholders and community engagement, establishing of sub-project implementation working groups, monitoring compliance with EIB Environmental and Social Standards and provision of trainings on social management.

More information on the UERP and the URP is available at the Ministry for Communities and Territories Development of Ukraine webpage.

UNDP TA contacts:

• Igor Kistenyov-Kavkazkii, Project Manager/Team Leader, igor.kistenyov-kavkazkii@undp.org
• Oleksandr Bielousov, Engineering Specialist (key expert), oleksandr.bielousov@undp.org  
• Oleksandr Radionov, Procurement and Finance Specialist (key expert), oleksandr.radionov@undp.org  
• Ivan Sikora, Anti-Corruption Specialist (key expert), ivan.sikora@undp.org
• Vsevolod Yakovliev, Stakeholders Engagement Specialist (key expert), vsevolod.yakovliev@undp.org

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About the EIB: The European Investment Bank (EIB) is the long-term lending institution of the European Union, and is owned by EU member states. The bank provides access to long-term financing for prudent investment to implement European Union policies.

About the EIB in Ukraine: The EIB has been operating in Ukraine since 2007. Ukraine is the main recipient country for EIB investment among the Eastern Partnership countries, accounting for more than 60 percent of EIB lending in the region. The bank focuses on the areas of social and economic infrastructure, transport and communications, local private-sector development, energy efficiency, innovation and climate change. Today, the EIB is one of the largest investors in Ukraine, with a portfolio of loans and guarantees totaling more than EUR 7 billion.

About the Ukraine Early Recovery Programme: The Ukraine Early Recovery Programme is implemented in accordance with the Financial Agreement between Ukraine and the European Investment Bank. Through the programme, the EIB has provided EUR 200 million in multi-sectoral framework loans to local authorities to rehabilitate important utilities and transport infrastructure, and improve living conditions for internally displaced persons and their host communities. 

About UNDP in Ukraine: The United Nations Development Programme (UNDP) establishes partnerships with government, business, and communities, promoting the development of countries, increasing their ability to withstand crises, and supporting economic growth to improve the quality of life of all. In Ukraine, UNDP's work focuses on three program areas: inclusive development, reconstruction and peacebuilding; democratic governance; energy and environmental protection. Today, Ukraine has one of the largest UNDP programmes in Europe.