EU launches a call for proposals under the Ukraine Investment Framework to boost investments for Ukraine’s recovery

The European Commission has launched the first call for proposals under the Pillar II of the €50 billion Ukraine Facility. This call aims to mobilise investments into Ukraine’s recovery, reconstruction and modernisation. 

This follows the second meeting of the Steering Board of the Ukraine Investment Framework on 20 September 2024, where the European Union Member States endorsed the launch of a call for proposals covering the following three areas: 

• Public investment: public sector operations, involving sovereign and non-commercial sub-sovereign entities, which are in line with public investment policy of Ukraine.
• Direct private investment: private sector operations where implementing partners enter in direct agreements with private and commercial sub-sovereign entities. 
• Private equity investment: equity and quasi-equity for private projects intermediated via funds.

The call will remain open for 12 months and have an indicative amount of EUR 2,75 billion in budgetary guarantees and blended finance grants. The first cut-off date for formal assessment of the proposals is 31 October 2024. The second cut-off date for review will be in early 2025, applications will be accepted on a rolling basis.

The call is open to all sectors of operations aligned with the Ukraine Plan for recovery, reconstruction and modernisation as well as the Strategic Orientations of the Ukraine Investment Framework. 

The call places importance on the alignment of proposals with the reformed Public Investment Management System of the Government of Ukraine and its planning of public investments. It puts an emphasis on a Team Europe approach, encouraging joint applications by multiple European partners, working together, pooling resources and expertise to deliver a unified response and greater impact. 

The call is open to eligible implementing partners under the Ukraine Facility Regulation, pillar assessed entities such as the international and European multilateral financial institutions, including the European Investment Bank Group, European Bank for Reconstruction and Development, International Finance Corporation, Council of Europe Development Bank, and bilateral financial institutions such as development banks and export credit agencies. 

Local authorities and companies interested in participating in the Ukraine Investment Framework can contact the relevant ministries and agencies in their country. 

For questions related to the call for proposals, eligible implementing partners are invited to contact: NEAR-EU-UKRAINE-INVESTMENT-FRAMEWORKec [dot] europa [dot] eu (NEAR-EU-UKRAINE-INVESTMENT-FRAMEWORK[at]ec[dot]europa[dot]eu)   

Background

The EU’s Ukraine Investment Framework is an integral pillar of the €50 billion Ukraine Facility designed to attract public and private investments for the recovery and reconstruction of Ukraine. It is equipped with financial instruments totalling €9.3 billion, with €7.8 billion in loan guarantees and €1.51 billion in blended finance. The objective of the Ukraine Investment Framework is to mobilise €40 billion of investments for the reconstruction, modernisation and long-term growth of Ukraine, supporting the objectives and the implementation of the Ukraine Plan consistently with EU policy priorities.  

The Ukraine Investment Framework is building on the experience of European Fund for Sustainable Development Plus (EFSD+) and the Neighbourhood Investment Platform and is implemented in indirect management by pillar-assessed entities, i.e. European Financial Institutions and multilateral Financial Institutions. 

In June 2024 at the Ukraine Recovery Conference in Berlin, European Commission President Ursula von der Leyen announced the signature of the first investment programmes under the UIF. The EU concluded €1.4 billion in new guarantee and grant agreements to support Ukraine's recovery and reconstruction.