Paris, France,December 12, 2022—To help rebuild Ukraine’s infrastructure and accelerate economic recovery, IFC will serve as a strategic advisor to Ukraine, supporting the government to create conditions to boost private sector investment in reconstruction. Both parties signed an agreementtodayto underpin these efforts.
As the Russian invasion of Ukraine continues, taking a severe economic and humanitarian toll, the estimated investment needs range from $70-$80 billion annually, according to the Ministry of Economy. As of June 1, 2022, the reconstruction and recovery needs total $350 billion, says the Rapid Damage and Needs Assessment, recently prepared by the World Bank, European Commission, and the government of Ukraine.
Against this backdrop, Ukrainewill need unprecedented amounts of capital for its reconstruction efforts. The private sector has an important role to play in providing critical services, reviving economic growth, and helping meet these vast reconstruction needs.That is why IFCand the World Bankwill work together with other development partners to assist the Ukrainian governmentwith a post-war reconstruction framework for private investment,helping rebuild Ukraine’s national and municipal infrastructure.
Denys Shmyhal, Prime Minister of Ukraine, said: “The Russian war against Ukraine has caused unprecedented damage to our country, with recovery costs estimated at billions of dollars. Ukraine invites private companies and financial institutions globally to be part of this ambitious plan. With IFC, we are working to create conditions to boost private investments in our economy, especially through PPPs. Together, we hope to launch high-quality projects for Ukraine's recovery. We’re grateful to our partners for this support.”
IFC and the World Bank will help the country streamline legislation, simplify the selection and approval process for PPPs, andidentify and prioritize reconstruction projects, which could be implemented with private participation. IFC, in partnership with the Federal Ministry of Finance of Austria, will further support the government to develop financial structures to crowd in private capital—including by leveraging public and donor finance—and tender specific flagship projects in key sectors,including energy, transport and logistics, housing, and healthcare.
Moving forward, IFC will also seek opportunities to finance and mobilize financing from other investors to help rebuild Ukraine’s infrastructure and cities through select projects.
Alfonso Garcia Mora, IFC’s Vice President for Europe, Latin America and the Caribbean, said: “The war will have a long-lasting macroeconomic and social impact on Ukraine and its people. The financing needs to rebuild Ukraine’s infrastructure and support its economic recovery are immense and keep rising. As one of Ukraine’s largest private sector investors, IFC is committed to help leverage much needed private capital for Ukraine’s rebuild. We will start working with the Government of Ukraine on strengthening the enabling environment for private investment in infrastructure, as well prioritizing and developing projects. This will help mobilize private investors as soon as Ukraine’s conditions allow to start the full-fledged reconstruction.“
Since the start of the war onFebruary 24, 2022, IFC continued to support its existing private sector clientsand provided direct support to Ukrainians suffering from Russia's invasion, including refugees and internally displaced people, and affected municipalities.IFC is also finalizing its program for Ukraine, which will support projects in Ukraine, leveraging blended finance. It will prioritize investments to ensure supply of critical goods and services, such as food and fuel, support business preservation and reallocation, and address immediate logistics and energy threats.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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