Strengthening of UKR Local Government I (ÖP)

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Ukraine is directly affected by the corona crisis and its associated effects. Rising unemployment, wage losses and the loss of payments from abroad when Ukrainians return home represent major challenges for Ukrainian municipalities. The aim of the module is therefore to strengthen Ukrainian municipal administrations. Key measures to achieve the goal are the rehabilitation and new construction of municipal infrastructure within the framework of micro-projects. The approach is based on the anchor city principle, which relies on partner cities that have experience in KfW's FC procedures. Based on these, the module's area of application is expanded to include the surrounding municipalities. The module is an urgent project in accordance with section 4.7 of the FC/TC guidelines. The target group is the population of the municipalities involved, their municipal energy suppliers and, in particular, the Ukrainians employed as part of the project. With the start of the Russian invasion of Ukraine on February 24, 2022, the needs of the project have shifted. Instead of several project cities as presented in the MV, only one anchor city, namely Chernivtsi, in western Ukraine, will be selected. This will enable urgently needed repair work to be carried out on the water supply and sewage disposal system in Chernivtsi, whose population has doubled due to the influx of internally displaced persons. Based on the specific needs and possibilities on site, rehabilitation work in the area of drinking water supply and sewage disposal will be financed instead of the originally planned micro-projects. The project is being carried out by the municipal water supplier, Chernivtsi Vodokanal (CVK), a long-standing partner of the Federal Development Fund. The project will be implemented with the help of a qualified international implementation consultant, who will also be financed from the grant funds.