Ukraine's recovery needs are estimated at $486 billion

"As of December 31, 2023, the total cost of recovery and reconstruction in Ukraine is estimated to be $486 billion over the next decade. This figure is higher than the needs estimated at USD 411 billion a year ago," the World Bank said in a statement.

The largest recovery and reconstruction needs are estimated to be in the residential sector (17% of the total), followed by transportation (15%), trade and industry (14%), agriculture (12%), energy (10%), social protection and livelihoods (9%), and explosive ordnance disposal (7%). The total cost for all sectors to clear and manage the remnants of the destruction (and, if necessary, demolition) has reached almost $11 billion.

According to the Ukrainian authorities, in 2024 alone, the country will need about $15 billion for urgent priority reconstruction and recovery measures. The emphasis, as indicated, is on supporting and mobilizing the private sector, as well as restoring housing, social infrastructure and services, energy, and transportation.

The RDNA3 (Rapid Damage and Needs Assessment) emphasizes that while about $5.5 billion of these funding needs have already been met, about $9.5 billion remains unfunded.

"The RDNA3 assessment, which covers the damage caused over the almost two-year period from russia's full-scale invasion of Ukraine on February 24, 2022, to December 31, 2023, shows that direct damage in Ukraine has reached almost $152 billion," the report says,

It is also noted that since the last RDNA2 assessment, the government of Ukraine, with the support of partners, has addressed some of the most pressing needs. "For example, according to the government of Ukraine, in 2023, USD 1 billion was allocated for the restoration of the housing sector, with most of the funds being used to repair and rebuild damaged buildings. In the transportation sector, emergency repair work has been carried out on more than 2,000 kilometers of highways, byways, and other national roads. In the education sector, local authorities have restored about 500 educational institutions, and since January 2023, the share of educational institutions with bomb shelters has increased from 68% to 80%," the statement said.

Source: The World Bank