As a result of the war in Ukraine, which is still continuing after twelve months, dwellings and public infrastructure have been demolished or damaged, public services and economic activity have been impeded, and significant numbers of Ukrainians have been displaced from their homes.
Since the Rapid Damage Needs Assessment carried out by the World Bank in spring 2022, local experts already estimate the cost of reconstruction to be significantly higher. Indeed, their estimate is $138 billion, compared to the original estimate of $97 billion. Beyond damage costs the World Bank estimates total reconstruction needs in the order of $350 billion. Since October 2022, Ukraine’s critical energy infrastructure has been further damaged, threatening supplies and exposing Ukrainian citizens to a lack of electricity, heat and hot water during the winter.
In the light of the growing global construction market, on the one hand, and the lack of manpower in the global construction industry, on the other hand, CICA, FIEC and EIC, with the other co-signatories call on international donors to create attractive financial and legal framework conditions for construction companies and their suppliers that are ready to use their scarce resources for the reconstruction of Ukraine. The reconstruction effort should be led by the Ukrainian authorities in close partnership with the European Union and other key partners, such as G7, as well as international financial institutions.
Check out our Recommendations for the future Reconstruction of Ukraine