23 Mar 2023 16:45

World Bank estimates cost of rebuilding Ukraine at $411 bln

MOSCOW. March 23 (Interfax) - The World Bank estimates that Ukraine will need at least $411 billion to rebuild, which is 2.6 times the country's 2022 GDP, based on a country needs assessment as of February 24, 2023.

The assessment was carried out jointly with the European Commission and the UN, a World Bank press release on Thursday said. The government of Ukraine also took part.

"The cost of reconstruction and restoration has increased to $411 billion," the press release says (as of June 1, 2022, it was estimated at $349 billion). "Reconstruction and restoration costs are expected to stretch over 10 years and will combine requirements for both government, as well as private funds.

The second Rapid Damage and Needs Assessment (RDNA2) quantifies direct physical damage to infrastructure and buildings and describes the impact on lives and livelihoods.

According to World Bank estimates, Ukraine needs $14 billion in 2023 for priority and critical areas, which will require $11 billion in funding in addition to what the government has already provided for in the current year's state budget. This includes $6 billion for budgetary needs and another $5 billion in financial support for state-owned enterprises and activation of the private sector.

Estimated needs for the next decade take into account inflation, market conditions, skyrocketing prices in high-volume construction regions, rising insurance premiums, and a shift towards less energy-intensive, more sustainable, inclusive and modern projects in the future.

According to the materials, the greatest needs are in the transport sector (22%), housing (17%), energy (11%), and the social protection sector (10%). "The largest increase in damage has been in the energy sector, where it is more than five times greater than it was in June 2022," the press release says.

The World Bank notes that the assessment of damage and needs should be considered as a minimum number, as they will continue to grow.