Funds to go to development of social infrastructure

Cabinet of Ministers at its meeting on 26 September approved signing of the Financial and Project Agreement between the Government of Ukraine and the German State Bank KfW amounting to € 7 million, as reported by the press service of the Cabinet.

The funds will be directed on further implementation of the national project "Promoting social infrastructure".

Experts say that Ukrainian side in the agreement is represented by the Ministry of Social Policy (recipient of the funds), while implementation of the projects within German grant will be done by Ukrainian Social Investment Fund (USIF).

USIF plans to direct the funds to the development of social infrastructure in villages and small towns. In particular, the measures are scheduled to train heads of communities and community organizations to improve living conditions in their territory.

Analysts say that the scope of such training is usually creation of innovative models of social services for disadvantaged groups (people with disabilities, orphans, the homeless, the elderly, victims of violence, etc.)

Experts also stress that these measures include financing of mandatory repairs of kindergartens, schools, local health posts, clubs, water supply systems and roads.

USIF donors at different times were the World Bank, the Government of the United Kingdom (DFID), the Government of Sweden (Sida), the Government of Japan (JSDF), Government of Germany (KfW), the Charles Stewart Mott Foundation.

USIF currently implements programs in the Crimea, Lviv, Vinnytsia, Kirovohrad and other areas of Ukraine. In particular, in the Kirovohrad region for this purpose 13 million UAH were allocated earlier, and distributed among the 14 micro-projects.

In 2013-2014 the project will cover another three districts of Vinnytsia region: Kalynivsky, Pischansky and Iampilsky. In particular, the German Government will allocate 22 million UAH for development of the social infrastructure of these districts.