The European Development Bank has approved an additional €100 million for Ukraine’s “eRecovery” program, marking the third phase of funding for the HOME project, which compensates for housing destroyed during the ongoing conflict with Russia.
On March 18, Deputy Prime Minister for Reconstruction Oleksiy Kuleba announced the decision, which was made during the annual meeting of the bank’s administrative council held in Warsaw.
Kuleba explained that the compensation mechanism allows individuals who have lost their homes to receive housing certificates, which can be used to purchase new residences.
“In the first two phases of funding under the HOME program, over 6,000 families acquired housing, and all allocated funds were fully utilized. The new financing will enable more than 3,000 additional families, who have already received certificates, to secure housing,” the minister stated.
Since the inception of the “eRecovery” program, more than 26,000 families have successfully purchased new homes. However, the registry currently indicates that there are 324,000 damaged and destroyed properties, with over 285,000 being residential.
On March 9, Kuleba reported that the governing council of the Ukraine Investment Framework (UIF) approved a new package of eight programs aimed at Ukraine’s recovery, totaling €1.5 billion.
Overview of the “eRecovery” Program
On February 23, 2023, the Ukrainian Parliament enacted a law establishing a state registry for war-damaged and destroyed property, along with a compensation process.
The “eRecovery” program officially commenced in May 2023, allowing Ukrainians whose homes were affected by the conflict to receive funds for repairs. To access this assistance, individuals must report damaged property through the “Diia” application and submit a request for financial aid.
The funds provided can only be used for the restoration of their homes, specifically for purchasing construction materials or contracting services from companies participating in the program.
The “eRecovery” service was developed by the Ministry of Community Development, Territories, and Infrastructure in collaboration with the Ministry of Digital Transformation, with support from the USAID/UK aid project “Transparency and Accountability in Public Administration and Services/TAPAS.”
On May 10, 2023, the Ministry of Digital Transformation launched the “eRecovery” service within the “Diia” platform, enabling Ukrainians to apply for funds for repairing homes damaged by the Russian invasion.
On May 12 of the same year, the government set the maximum amount of assistance available to individuals whose homes sustained minor damage at 200,000 hryvnias.
The European Development Bank has allocated an additional €100 million to Ukraine's housing recovery initiative, aimed at compensating families for homes destroyed in the conflict. This funding will support thousands more families in acquiring new residences as part of the ongoing HOME project.