UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings

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UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
UKRAINE
Rapid Damage and Needs
Assessment (RDNA2)
                         Key Findings
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
OBJECTIVES AND LIMITATIONS

The overall objective was to conduct a rapid yet consistent and robust assessment
to inform reconstruction and recovery planning

Difference with RDNA1
 • Priorities for 2023 estimated
 • Exchange rate adjustment per July 2022
 • One year of damage February 2022-2023

Limitations
 • Data availability or sensitivity of data
 • Sector-level not asset-level assessment
 • Damages sustained after Feb 24, 2023, are
   not included
                                                                                    Julia Burlachenko
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
MACROECONOMIC AND POVERTY IMPACTS

The war has taken a severe human, social, and economic toll

• Gross Domestic Product (GDP) shrunk by 29.2 percent in
  2022, and—with the continued duration of the war
  uncertain—is expected to grow by only 0.5 percent in 2023
• Tax revenue collection has deteriorated significantly, and
  public expenditure increased sharply to ensure delivery of
  key public services during war time
• 8.1 million people are displaced across Europe (UNHCR, Feb
  2023)
• 5.4 million people were internally displaced within Ukraine
  with protracted (six months+) displacement prevalent (IOM,
  January 2023)
• Poverty is expected to increase from 5.5 percent to 24.1
  percent in 2022 (based on the poverty line of US$6.85 per
  person per day), pushing an additional 7.1 million people
                                                                Julia Burlachenko
  into poverty and setting back 15 years of progress
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
OVERALL DAMAGE AND NEEDS

                 D I R EC T
                              Safe repair & reconstruction of
                DA M AG E      buildings & infrastructure to    R ECO N ST R U C T I O N A N D
               US$135           modern & green standards
                                Support recovery of public
                                                                   R ECOV E RY N E E D S
                                 services & private sector
               billion                                             US$411 billion

Julia Burlachenko
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
$135 BN IN DAMAGE – MOST AFFECTED SECTORS

                         TOTAL DAMAGE (US$ BILLION)
                                                                                         • Significant damage to social and infrastructure sectors
                         Environment and

           Finance and
                         Foresty ; $2
                                                                                         • Housing represents 37 percent of total damage
           Banking $0                                       Housing $50                    (US$50.4 billion), including more than 1.4 million
 Commerce and
                                                                                           housing units affected; with over 1/3 destroyed of
Industry $11                                                                               these beyond repair
                                                                     Education $4
Agriculture $9                                                                           • Transport represents 26 percent of total damage
                                                                           Health $2
                                                                                           US$35.7 billion), incl. 12 percent of transport damages
  Municipal Services…                                                                      related to bridge infrastructure, and 19 percent of
                                                                                           transport damage related to railway infrastructure and
  Water Supply and                                                                         assets
  Sanitation $2
                                                                                         • Energy represents 8 percent of total damage (US$10.6
Telecommunications and
Digital $2
                                                                Culture and Tourism $3     billion) with largest share of damage in the power
                                                                                           sector (close to US$6.5 billion) – highest increase in
                                                                                           damage since RDNA1
                 Transport $36
                                                         Energy and                      • Commerce and industry represents 8 percent of total
                                                         Extractives $11
                                                                                           damage (US$10.9 billion), including both private and
Source: RDNA2. Damage covers the period February 24, 2022, to February 24, 2023.
                                                                                           publicly-owned enterprises
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
$135 BN IN DAMAGE – MOST AFFECTED REGIONS

       Damage < US$ 1 bn

       Damage US$ 1-5.9 bn

       Damage US$ 6-9.9 bn

       Damage > US$ 10 bn

Regions with highest damage
•   Donetska
•   Kharkivska
•   Luhanska
•   Zaporizka
•   Khersonska
•   Kyivska
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
$411 BN IN RECOVERY & RECONSTRUCTION NEEDS

TOTAL RECOVERY AND RECONSTRUCTION NEEDS (US$ BILLION)                                 • Recovery and reconstruction estimates integrated green,
                             Finance and
                                                                                        resilient, and inclusive reconstruction measures and
 Irrigation and Water                              Management of Explosive
 Resource Management $9
                             Banking $7
                                                   Hazards $38
                                                                                        consider prevailing challenges with labor and material
                                                                                        costs and “surge” pricing
 Commerce and                                                 Housing $69
Industry $23                                                                          • Transport makes up 22 percent of total needs (US$92.1
                                                                                        billion), subject to assumptions about the configuration of
                                                                  Education $11
 Agriculture $30                                                                        Ukraine’s transport networks during reconstruction
  Municipal Services…                                                 Health $16      • Housing makes up 17 percent of total needs (US$68.6
                                                                                        billion)
  Water Supply and
  Sanitation $7                                               Social Protection and   • Energy makes up 11 percent of total needs (US$47 billion)
                                                             Livelihoods $42
                                                                                      • Social protection and livelihoods equals 10 percent of the
 Telecommunications
 and Digital $5                                                                         total needs (US$41.8 billion), including social benefits and
                                                             Culture and Tourism
                                                                                        services, payments to IDPs and the newly impoverished
  Transport $92                                              $7
                          Energy and                                                  • Explosive hazards management (humanitarian demining)
                          Extractives $47
                                                                                        makes up 9 percent (US$37.6 billion), due to massive
 Source: RDNA2. Needs relate to total estimated needs covering the period 2023–         urban, agricultural and forestry areas contaminated by
 2033.
                                                                                        land mines and explosive remnants of war
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
RDNA1 vs RDNA2 RESULTS
                                                            SPATIAL EVOLUTION OF THE WAR BETWEEN FEBRUARY 2022 AND FEBRUARY 2023

• Damages have increased by 38 percent                                February 24, 2022 – May 31, 2022                                     June 1- August 31, 2022

• Needs have increased by 18 percent
• The overall moderate increase in needs, albeit
  with major increases for specific sectors, reflects
  the trajectory of the war
    o High war intensity in early months
    o Control restored in some initially invaded
                                                                  September 1, 2022– November 30, 2022                            December 1, 2022 – February 24, 2023
      regions
    o Targeted attacks on critical infrastructure,
      with stalemate warfare in the eastern
      regions

  Other factors also include devaluation of the UAH and
  more precise estimates of land potentially contaminated
  with explosives                                            Data source: Armed Conflict Location and Event Data Project (ACLED), processed by assessment team.
                                                             Note: War events includes events categorized as battles and explosions/ remote violence by ACLED methodology; Hryvnia was
                                                             devalued by the National Bank of Ukraine in July 2022. The adjusted exchange rate affected data for some sectors assessed
                                                             under RDNA2.
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
GOVERNMENT PRIORITIES FOR 2023
                                  Energy infrastructure
                                 • Restoration and repair of power transmission and
                                   distribution lines
                                 • Restoration and decentralization of energy generation
                                 • Strengthening the protection of the power grid

                                  Humanitarian demining (explosive hazard
                                  management)
                                 • Scaling up demining activities

                                  Housing
                                 • Repairs of flats and private housing

                                  Critical and social infrastructure
                                 • Renewal of basic housing utilities and digital infrastructure
                                 • Repairs and reconstruction of transport connections and ports
                                 • Repairs and restoration of social and administrative
                                   infrastructure

                                  Private sector
                                 • Guarantees, first loss facilities, lines of credit
                                 • Support to small and medium-sized enterprises and agricultural
Oleksandr Kulik
                                   sector
UKRAINE Rapid Damage and Needs Assessment (RDNA2) - Key Findings
US14 BN IN 2023 IMPLEMENTATION PRIORITIES

• Out of US$14 billion, around US$9 billion in direct government                                • Meeting the 2023 priorities will require US$11 billion in financing
  expenditure will lay the groundwork for a safe, prioritized,                                    beyond what the government has already addressed, including
  achievable, and efficient reconstruction and recovery. This will be                             US$6 billion for the state budget and US$5 billion in financing to
  complemented by investments by key SOEs and support to sustain                                  support SOEs and catalyze the private sector.
  the private sector, including de-risking investment and trade.

  2023 IMPLEMENTATION PRIORITIES PER GOVERNMENT PRIORITY SECTORS                                          2023 IMPLEMENTATION PRIORITIES PER TYPE OF FUNDING
                        Private sector-                                                                               Private sector:                 Government:
                                                                  Energy- core                                        lines of credit,                   current
                        Commerce and                                                                     Non
                                                                infrastructure ;                                     guarantees, and                  expenditures;
                         Industry; 2,1                                                               Government-
                                                                      2,1                                            insurance; $1,5                      $1,5
  Private sector-                                                                                     executed
  Agriculture; 0,6
                                                                         Energy- payments
                                                                         to operators ; 1,2                                                                             Government-
                                                                                                        SOE investments;
     Critical and                                                                                             $2,1                                                       executed
      Social…
                                                                                Humanitarian
                                                                               Demining ; 0,4
                                                                                                          Payments to
  Critical and Social
                                                                                                             energy                                            Government:
   Infrastructure-
                                                                                                         operators; $1,2                                      capital / project
  Utility Services ;…
                                                                         Housing ; 1,9                                                                         expenditures;
                                                                                                                                                                    $7,8
        Critical and Social
         Infrastructure-
        Social & Admin ;                  Critical and Social
                1,3                        Infrastructure-
                                           Transport ; 3,5
Source: RDNA2. Sectoral definitions used in this figure are aligned with government priorities and do not match exactly with the structure of the RDNA2. Humanitarian demining refers to
explosive hazard management in the RDNA2.
DAMAGE, NEEDS, AND 2023 PRIORITIES

                                                                                           3.5 B                                             1.9 B
                                                                                                                           1.3 B
                                                                                                   0.5 B
                                                                                                                                                        2.1 B
                                                                                                                   0.4 B
                                                                                                                                               0.6 B

 Source: RDNA2. Note: US$14bn reflects 2023 investments in government-prioritized sectors. Total 2023 implementation needs across all RDNA2 sectors is US$18 billion.
Summary and full report available online in
English and soon also in Ukrainian

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