Current news on Rebuild Ukraine topic

Defense Technology Cluster Brave1 Unites 1,600 Developments from 1,000 Ukrainian Manufacturers and Funds $3 Million in Grants in One Year.

The Brave1 Defense Technology Cluster, established a year ago, has significantly accelerated the implementation of technological tools on the front lines, as reported by the Ministry of Digital Transformation. The cluster encompasses 12 priority development areas defined by the General Staff, including UAVs, robotic systems, navigation, artificial intelligence, communications, and more.

Key Achievements of the Cluster, According to its Head Natalia Kushnerska:

• Over 1,600 developments registered on the Brave1 platform.
• 60 developments have been codified and are ready for procurement or are already being procured by the state.
• Nearly 1,000 Ukrainian manufacturers have been involved.

Manufacturers can receive grant funding for development, with over $3 million in grants awarded since last summer for 186 projects. The grant amounts range from ₴500,000 to ₴8 million.

Priorities for the Second Year of the Cluster's Operation Include:

• Ground robotic complexes;
• Electronic warfare (EW);
• Artificial intelligence in defense technologies;
• Unmanned aerial vehicles (UAVs).

Relocated Enterprise "Friendly Wind Technologies" Begins Wind Turbine Production in Zakarpattya, While DTEK Prepares for the Second Phase of the Tiligulska Wind Power Plant.

The company "Friendly Wind Technologies" has announced the readiness of its production line for manufacturing wind energy installations. The enterprise plans to produce up to 20 wind turbines per year with a unit capacity ranging from 4.8 to 5.5 MW. This is the only national manufacturer of multi-megawatt-class wind energy installations, which relocated from Kramatorsk to Zakarpattya due to the full-scale war in 2022.

In 2023, "Friendly Wind Technologies" began the construction of the first wind power plant (WPP) in Zakarpattya with a capacity of about 80 MW. The company plans to build at least 500 MW of capacity.

DTEK has announced preparations for the construction of the second phase of the Tilihulska WPP in the Mykolaiv region, 100 kilometers from the front line. Upon completion, the WPP will have a capacity of 500 MW, making it the largest in Eastern Europe. The construction of the second phase is estimated at $450 million.

American Company Plans to Invest in Lviv Region and Build Affordable Housing.

The American investment company Chicago Atlantic Trident plans to invest in the construction of affordable housing and the development of industry in the Lviv region, as announced by the head of the Lviv Regional State Administration, Maksym Kozytskyi. American investors have expressed their interest in supporting the reconstruction of Ukraine.

"We are here to help in the rebuilding of Ukraine. We have five private funds, two of which are publicly traded on NASDAQ. Over the past five years, we have invested over $2.5 billion," noted Dmitry Lampert, a partner at Chicago Atlantic Trident.

To address the housing issue, the company has assembled a strong team that includes former World Bank President David Malpass, UkraineInvest Executive Director Serhiy Tsivkach, a former Vice President of the International Finance Corporation (IFC), and other highly qualified specialists.

Maksym Kozytskyi emphasized that the demand for affordable housing in the region is significant. Since the start of the full-scale invasion, Lviv has received the largest number of internally displaced persons—over 240,000 officially, and 350,000 according to unofficial data. The investors have already selected projects for potential investment this year.

UAE Company to Invest €130 Million in Crucial Logistics Infrastructure in Romania.

The port operator and logistics company DP World, based in Dubai, is investing €130 million in developing Romania's connectivity with Europe through maritime and land trade, increasing cargo volumes by 2 million tons per year. The company, which has been operating in Romania for 20 years, will invest in a terminal in Constanta covering an area of 5 hectares for heavy and oversized cargo, as well as a new automotive terminal with a capacity of 80,000 vehicles per year.

Additionally, the company will invest €50 million in a new multimodal transport platform in Constanta, with plans to launch it next year. The Romanian port of Constanta serves as the largest alternative maritime route for Ukrainian exports, contributing to record-breaking port performances over the past two years. In 2023, the port set an absolute record in cargo handling, largely due to Ukrainian cargo flows.

However, there is a possibility that last year's record peak in Constanta will serve as a benchmark for the future, as Ukrainian transit volumes stabilize, and the port returns to organic growth.

How will the EU investment tool for Ukraine, the Ukraine Investment Framework, work?

The Ukrainian Investment Framework (UIF) is an investment instrument of the Ukraine Facility program aimed at mobilizing investments for the restoration and development of Ukraine. Financing through the UIF will be carried out with the assistance of international financial institutions (IFIs) and bilateral development agencies, allowing for the expansion of existing programs and the launch of new initiatives to support Ukrainian businesses.

Key elements of the UIF operation:

1. Guarantees totaling €7.8 billion: These guarantees reduce the risks of IFI operations in Ukraine, enabling more resources to be mobilized for investments. It is expected that for every €1 of IFI guarantee, an additional €2-4 will be allocated for investments in Ukrainian projects, allowing a greater number of entrepreneurs to receive financial support.
2. Financing through Ukrainian partner banks: Ukrainian banks partnering with UIF will be able to provide more active financial support to businesses. This will contribute to increased access to financing for local enterprises.
3. Blended financing, grants, and technical assistance: An additional €1.5 billion will be directed towards blended financing, grants, and technical assistance for businesses. These funds will also be distributed through IFIs and Ukrainian banks, providing comprehensive support for enterprise development.

The first investment programs under the UIF will be signed at the Ukrainian Reconstruction Conference (URC) in Berlin on June 11-12. This will mark the beginning of the implementation of the first stage of the UIF, which will last from 2024 to 2025.