Damage to Ukraine’s power, gas, and heating infrastructure exceeds $10 billion, according to new assessment by UN Development Programme and World Bank
05 April 2023
More than $1.2 billion is urgently needed for emergency repairs to critical infrastructure
Kyiv, 5 April 2023 – Relentless attacks on Ukraine’s energy infrastructure has caused over $10 billion in damages and left over 12 million people with no or limited electricity, while also disrupting water supply and heating systems, according to a comprehensive Energy Damage Assessment from the United Nations Development Programme (UNDP) and the World Bank.
The assessment provides the most detailed overview of the catastrophic damage to Ukraines energy infrastructure, with emergency repairs estimated to reach $1.2 billion.
“Currently, we are focused on implementing projects that meet the urgent needs of the population and the economy, said Oleksandr Kubrakov, Vice Prime Minister for Restoration of Ukraine – Minister for Communities, Territories and Infrastructure Development of Ukraine. “UNDP’s Energy Damage Assessment shows just how massive these needs are. We expect the international community will use this report to provide additional assistance."
The largest share of damage is in the power sector – close to US$6.5 billion – while damage to nuclear plants reached about US$770 million. With whole communities having faced weeks without power in below freezing temperatures over the recent winter, the assessment also highlights the need for urgent emergency planning for the 2023/2024 winter season, which it is estimated will cost approximately US$1 billion.
“Right now, the priority is to keep the lights on and the heat flowing. This will be a momentous task, as our new assessment shows that emergency repairs will cost at least $1.2 billion, with a key focus being to secure power supply for critical infrastructure in big cities and in war-affected areas damaged beyond recovery,” explained Jaco Cilliers, UNDP Resident Representative in Ukraine.
“But we also cannot wait for the war to end before we start laying the groundwork for longer term recovery. This energy assessment provides critical data that can support Ukraine in its transition towards a greener, more sustainable and more resilient energy infrastructure,” he continued.
Overall, damage to the country’s energy infrastructure is estimated to be more than five times greater than in June 2022, according to preliminary estimates. As a continuation of the damage assessment, the next phase should estimate the loses and needs to build back better, including transitioning to green technology.
“The costs of repairing and restoring the energy sector continue to mount,” said World Bank Operations Manager for Eastern Europe Gevorg Sargsyan. “Recovery and reconstruction present an opportunity for Ukraine to achieve a more resilient and green energy future. This will require balancing the immediate need for fast provision of services with the importance of building back better. Careful planning will be needed to ensure thoughtful investments and to simplify processes to attract financing from a range of public and private sources.”