MORE THAN 500 IDP FAMILIES WILL RECEIVE NEW HOUSING IN KRAMATORSK AND SIEVIERODONETSK
The International Organization for Migration (IOM) will build and renovate housing for more than half a thousand families, who were left without their homes due to armed aggression of the Russian Federation in the East of Ukraine. More than 80% of those who will receive new housing are internally displaced persons (IDPs), and 20% are local residents of Kramatorsk (Donetsk oblast) and Sievierodonetsk (Luhansk oblast). The Federal Government of Germany will finance the works through the KfW Development Bank. The Ministry for Reintegration of the Temporary Occupied Territories of Ukraine has signed a Memorandum of Cooperation within the framework of the project "Improving Living Conditions of Internally Displaced Persons in Eastern Ukraine" launched by IOM with the Kramatorsk City Council and the Sievierodonetsk Civil-Military Administration.
The project envisages construction of 500 apartments and additional purchase of 60 apartments in two cities: Kramatorsk and Sievierodonetsk, which will be provided to IDPs and local residents for moderate rent with subsequent right of ransom. The project will last for five years, with a total budget of EUR 22.1 million.
"The project will run until 2025 and should provide housing to about 1500 internally displaced persons. Within the framework of the project it is planned to build 500 apartments and additionally purchase 60 apartments. The Ministry for Reintegration is interested in the project realization and is ready to act as its supervisor. For this purpose, a Supervisory Board with participation of all interested parties will be established at the Ministry," said Davyd Makarian, Deputy Minister for Reintegration of the Temporary Occupied Territories of Ukraine during a press conference on the occasion of signing of the Memorandum.
According to the latest IOM survey, only 11% of IDPs in Ukraine currently live in their own housing. Up to 60% of IDPs have been renting accommodation for over six years and another 17% have been living with relatives or host families.
"Local communities that host IDPs still need additional support, starting from infrastructure development and economic capacity to social cohesion," said Anh Nguyen, IOM Ukraine Chief of Mission.
IOM promises that all modern construction standards, including energy efficiency and environmental protection, will be complied with in apartment construction.
This is the second phase of a large-scale project within the framework for providing housing to the IDPs and Ukrainians residing in the Government-controlled area of Ukraine.
The first phase provides for a grant of EUR 25.5 million to Ukraine from the Federal Government of Germany.
Therefore, in June 2020, Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Ukraine Anka Feldhuzen and Deputy Prime Minister of Ukraine Oleksii Reznikov signed a corresponding Agreement on Financial Cooperation. The aim of the project, which is also implemented by KfW, is to refinance a subsidized state program to provide loans for the purchase of own housing. Depending on the actual volume of loans through this grant, up to 1200 loans can be refinanced. And up to 5000 internally displaced persons will benefit from this project, which improves their living conditions and their social integration into the territorial host communities.
While the usual market interest rate on available loans may be as high as 25% per annum, eligible households may receive loans under the state loan program at about 3% per annum.
However, the living space of apartments that are funded may not exceed the limit established by the state credit program.