The Ukrainian government has approved a resolution enabling the distribution of the second tranche of financing from the European Investment Bank totaling €100 million ($106 million), the Ministry of Communities and Territorial Development reports.

"This decision allows us to launch the transfer of subsidies from the state to communities," the ministry stated.

The funds will be available for recovery projects under the Ukraine Recovery Programme III (Tranche B) and will be directed under guarantees of the Ukraine Facility financial instrument for the first time, according to the ministry.

The money will finance restoration of social and critical infrastructure damaged by Russian armed aggression. Communities will be able to repair schools, kindergartens, hospitals, and housing and communal facilities.

"This is a direct investment in the recovery and resilience of Ukrainian communities. Our priority is the most effective transformation of these resources into key social facilities: reconstruction of schools and hospitals, development of barrier-free spaces and modernization of heating systems," commented Deputy Prime Minister for Recovery — Minister of Communities and Territorial Development Oleksiy Kuleba.

"From now on, all the necessary tools are in place locally to immediately begin implementing these projects. Our strategic goal remains unchanged: through infrastructure development, we seek to preserve, multiply and unlock human capital and potential in every Ukrainian community," he explained.

The new edition of the procedure and conditions clearly regulates the application of the Ukraine Facility instrument, ensuring transparency and efficiency in the use of international partners' funds locally, the ministry added.

The total funding volume under the Ukraine Recovery Programme III amounts to €250 million ($265 million). The first tranche of €100 million ($106 million) was ratified in August 2024, the ministry reported.

Previously, Ukraine received €46.1 million ($49 million) in credit funds from the European Investment Bank for four projects supporting urban development. The Cabinet of Ministers also approved the redistribution of subsidies from the state budget to finance an additional 15 projects in nine regions of Ukraine.

The Ministry of Communities and Territorial Development has been working on a second support package for frontline communities based on requests from the territories themselves. Currently, 242 communities in ten oblasts are classified as frontline, and the first package of the support program is operational.

The ministry also reported that the expanded Unified State Project Portfolio now includes an additional 11 projects in transport, two projects and two programs in municipal infrastructure and services, and one housing program.