The World Bank said on Wednesday it will finance $200m to help Ukraine repair its energy and heating infrastructure, with partners to provide an additional $300m as the project expands.
The grant will be used for emergency repairs to Ukraine’s transition transformers and mobile heat boilers, as well as other emergency electricity equipment.
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“Now in its second year, Russia’s invasion of Ukraine continues to have devastating economic and humanitarian consequences,” World Bank managing director of operations Anna Bjerde said in the statement.
“Energy infrastructure has suffered $11bn in damages over the last year and is one of the most critical areas where Ukraine needs urgent support. We are grateful for strong partnership with Ukraine and development partners to support this critical sector and act fast.”
During the autumn and winter months last year, more than 50% of Ukraine’s power infrastructure was damaged, resulting in power outages across the country. It also contributed to shortages of food, heating, and water, the World Bank said.
The energy grids in Kharkivska, Donetska, Khersonska and Zaporizka regions along the war’s frontline have been most affected.
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By GlobalData“Restoring energy infrastructure”
Continuous efforts to repair damaged power systems has meant that most power plants are currently connected to the grid, with no major blackouts in big cities in the last month. However, ongoing damages to transmission substantiations mean that scheduled outages persist in most regions.
“Restoring energy infrastructure is one of the key investment needs for Ukraine at this time,” said World Bank vice president for Europe and Central Asia Antonella Bassani. “This is critical both for recovery efforts and for resuming disrupted economic production and flows.”
The war has also meant that Ukraine’s electricity demand has continuously fallen over the past year. International Energy Agency data reveals that the Ukrainian electricity market has shrunk by 40% “with no sign of recovery,” as supply and demand have both been disrupted.
The Ukrainian government on Monday announced that its electricity exports to Europe have resumed after they were suspended in October when Russia began launching regular missile and drone attacks, Reuters reports.
To date, the World Bank has mobilsed more than $23bn in emergency financing for Ukraine, including commitments and pledges from donors.
