15 September 2014 Kiev

IMPACT OF THE CONFLICT IN AND OBLASTS ON THE SOCIAL AND ECONOMIC

INFRASTRUCTURE

SUMMARY

This paper presents a summary of the damage assessment in areas affected by the armed conflict of Luhansk and oblasts in the period since the beginning of the conflict until 14 September 2014. As of 14 September 2014, 1,968 facilities (including social infrastructure, residential houses, and enterprises) were reported to receive the damage, amounting to a monetary loss of total UAH 5.958 bn hryvnias, or US$ 440 mln (estimated, without account of unconfirmed damages in the residential sector, disruption of contracts, and lost profits of business enterprises). Among those reported 995 facilities are located in (UAH 1.094 million), and 783 facilities are in (UAH 3.964 billion). 190 facilities, with an estimated loss of UAH 900 m, belong to railway infrastructure situated in the territory of both oblasts. As can be seen in the consolidated table (page 6 and 7), 1230 housing buildings were damaged (667 in Luhansk and 563 in Donetsk oblasts), and this affected the shelter of 6,618 families (including 1,844 in Luhansk oblast and 4,774 in Donetsk oblast). Due to different limitations in determining the exact number of affected families, the real number of affected families is, most likely, of a greater scale than presented in this report. Indirectly (by worsened access to public services) the conflict in Donbass affected the majority of the 6,6 million population of the Donetsk and Luhansk oblasts. It is worth noting, that the report indicates another 1873 housing buildings damaged during the conflict, however no verification (geographical/address localization) was possible by the team of data collectors, and this number remained outside the main analysis in this paper. 659 public infrastructure facilities have been damaged (amounting to financial losses of UAH 5.54 billion), including:  561 social infrastructure facilities, with financial loss of UAH 4.55 billion; including 183 in Luhansk oblast – UAH 354.0 million, and 188 in Donetsk oblast – UAH 3.637 billion (the major share accounts for the Donetsk airport – UAH 3.23 billion); losses caused to railway infrastructure facilities is UAH 566.4 million;  53 bridges – UAH 235.5 million (of them 12 in Luhansk oblast – UAH 89.7 million, and 41 in Donetsk oblast – UAH 145.8 million);

1  45 road sections – UAH 750.8 million (including UAH 333.6 million for railways). The damages to public infrastructure per categories and regions are as follows: Table 1. Damages per categories, in number of facilities (breakdown as of 14.09.2014) Critical infrastructure* Donetsk Lughansk TOTAL Water supply 9 1 10 Electrical lines and infrastructure 53 2 55 Bridges (railway, auto and pedestrian) 17 12 29 Hospitals 22 830 Schools 26 35 61 Railway 1 23 Non-critical infrastructure Roads 2 43 45 Bus and train stations 7 5 12 Universities, colleges 7 7 14 Dormitories 6 3 9 Kindergartens 11 1021 Administrative buildings 21 17 38 Cultural institutions (centres, museums etc.) 3 9 12 Libraries 4 3 7 Churches 1 78 Sports infrastructure (youth sports centres, stadiums etc.) 6 7 13 Music/art schools 3 1 4 Natural gas related infrastructure 0 2 2 Trade and business facilities (shops, office buildings, hotels, restaurants, 17 39 56 banks, storage facilities etc.) Production enterprises 0 5 5 Damages to communal property/enterprises (communal markets, parks, 11 16 27 monuments, trolley bus depot, bus stops etc.) Children camps 0 2 2 Airport 1 12 Social care institutions 0 1 1 Sanitary-epidemiological and veterinary stations 3 0 3 TOTAL 231 238 469 Cross-regional railway lines (including 24 bridges) 190 190 GRAND TOTAL FOR PUBLIC INFRASTRUCTURE 659

*attribution to critical or non-critical infrastructure is analytical and is based on key needs in terms of living conditions (water, electricity), health, uninterrupted secondary education and mobility.

The damaged facilities can be divided into several categories, shares of which in the total financial value is following:

1) public infrastructure – 93.05%, including: - roads – 12.60% (railways included); - bridges – 3.95%; - social facilities – 76.50% (schools, preschool educational institutions, public utilities, administrative buildings, energy facilities, railway infrastructure facilities); 2) residential houses – 6.95 %;

2 3) enterprises (impact of the conflict upon the work of individual entrepreneurs) – 178 confirmed facts. The number of damaged facilities has increased from 596 to 1,968 since the time of the last report (prepared on 15 July 2014) by 1,372, or almost four times, and their cost has increased from UAH 4.38 bn to UAH 5.95 bn (by UAH 1.57 bn, or 36.0%). Such a mismatch between the changes in the number and the cost of the damaged facilities can be explained by the fact that the major share of financial losses accounts for the Donetsk airport with UAH 3,230.0 million. If this single facility is not considered, the damaged facilities’ cost growth rate is 136.98%. The information collected indicates that at least 178 business enterprises have suffered from the conflict, including 90 in Luhansk oblast and 88 in Donetsk oblast (both damages to buildings and property, as well as forced downtimes, redundancies, etc.). The following territories prevail in terms of the number of affected facilities:  in Luhansk oblast – Luhansk city (328 facilities for UAH 314.7 million) and city (284 facilities for UAH 89.2 million);  in Donetsk oblast – Donetsk city (266 facilities for UAH 3.4 billion), city (276 facilities for UAH 108.2 million), and if to consider unconfirmed damages, the Slovyansk city.

Besides, partners informed about damages caused to the residential sector in Krasny Lyman district (Zakatne village, Kryva Luka village, Illichivka village), district (Tarany village, village, Uspenivka hamlet), and Batiuk city in Donetsk oblast as well as in and districts of Luhansk oblast. At the same time, the information provided does not allow for identifying a location and an exact number of damaged houses, therefore it was not included in the total result. The information is presented in a separate line in Table 2 below for reference.

Summarized findings of the damage assessment are provided in the Table 2 below (page 6 and 7).

3 Data collection methodology and limitations

Due to rapidly changing situation, and various limitations (e.g. lack of access) data presented in this report are preliminary, and can serve as a starting point in recovery planning. To ensure efficient data collection, as well as because of movement restrictions in targeted oblasts, local study coordinators were appointed to gather and verify information presented in the report. Data collection process was further complicated by evacuation of most partners to other oblasts of as well as by on-going hostilities. The data collectors used , where available, official information from authorities and data provided by volunteers and partners. The study implementation involved more than 50 persons, including representatives of non-governmental organizations ( Business Association, Severodonetsk Agency for Development of Communities), Luhansk Oblast State Administration, Donetsk Chamber of Trade and Industries, and RFSE, as well as a network of Centres of Social Services for Family, Children and Youth of Donetsk oblast, acquaintances and relatives of all those engaged in the study process. For some reasons, the study had to rely, first and foremost, upon assistance from local residents. In particular, in some settlements their civilian administration (local state administrations or local governments) worked under control of self-proclaimed Lulghansk People Republic and Donetsk People Republic militia and was not accessible. In such cases, photographing infrastructure facilities would risk safety of people engaged into assessment.

It should be noted that data presented in this paper cannot be fully comprehensive due to on- going conflict, lack of access to certain territories. Moreover, the assessment determines damages visible to public activists and citizens (thus omitting infrastructural ‘invisible’ damages like pipeline, electrical grids, heating system damages etc.). The report provides only a preliminary analysis of monetary losses because financial estimates are subject to a proper evaluation by engineers, and correct assessment is possible only when construction works are started (assessment needs to consider also the risks of Ukrainian currency volatility and changing prices). The calculations given in this report were verified in consultations with construction companies (Standartenerho LLC, Kaskad SD LLC as well as ASR’s other partners), on the basis of their experience of performing similar works with account of average rates for description of damages and parameters by study coordinators on the ground, and using various facilities’ photos. Worth noting, that assessments performed by different entities might differ from those provided in this report.

Overall, 16 administrative territories affected by the conflict were monitored in Luhansk oblast ( city is formally part of Luhansk city), and 17 were monitored in Donetsk oblast ( and Zugres cities formally belong to Khartsyzsk city).

It should be noted that some territories turned out to be inaccessible for experts because of on- going hostilities (e.g. Luhansk international airport, Metallist settlement in Luhansk oblast, Ilovaisk city in Donetsk oblast) or due to presence of aggressively disposed conflict participants (e.g. Luhansk and Donetsk cities). Despite this fact, work was carried out to find contact persons in such territories and an attempt was made to gather information by phone. However, no detailed information was collected that way. At present, it is hard to estimate the loss, which was caused to ’s economy by shutting down of enterprises or by curtailment of production. For some territories, such data are absent, which is explained, inter alia, by enterprise management’s unwillingness to disclose information about their internal problems. Therefore, information about the conflict’s impact upon enterprises is presented based on available data do not reflect a complete picture. Moreover, it turned to be

4 impossible to evaluate the loss caused in some cases because of specificity of the facilities damaged (e.g. coating at Avanhard stadium in Luhansk or a burned temple in ). It should be noted that the anti-terrorist operation was on-going during data collection period (ceasefire was announced on a latest stage of data collection), and authorities keep collecting information about the damaged facilities. The views expressed in this publication do not necessarily represent those of the United Nations, including UNDP, or their Member States.

The full table of damages (in Russian) is available at: https://drive.google.com/folderview?id=0B8vp3D7TTFKAc2dnOXRLcWZUVlE&usp=sharing.

5 Table 2. Damages per location and per categories (public infrastructure and residential housing) IMPACT ON TOTAL PUBLIC INFRASTRUCTURE DAMAGES RESIDENTIAL SECTOR ENTERPRISE FACILITIES S AFFECTED

Including: Including: (public Amount of loss infrastructure Damage caused to public Damage to facilities + Damage to to Territory infrastructure other social residential roads, UAH bridges, facilities facilities facilities – total, facilities, affected houses + residential Roads Roads Number of Number of Number of Number of enterprises Bridges Bridges

facilities thous. UAH UAH thous. UAH thous. affected Other social families affected Loss, UAH thous. thous. Loss, UAH thous. damaged houses enterprises) LUHANSK OBLAST LYSYCHANSK CITY 35 1 2 32 54420.0 230.0 50000.0 4190.0 241 469 34826.3 8 284 LUHANSK CITY 97 97 261578.0 261578.0 181 699 53116.1 50 328 PERVOMAISK CITY 8 8 24100.0 24100.0 21 295 10786.0 4 33 CITY 10 1 9 1334.5 1000.0 334.5 30 30 143.5 15 55 SEVERODONETSK CITY 2 1 1 400.0 100.0 300.0 7 22 3060.0 3 12 DISTRICT 4 4 8236.7 8236.7 4 KRASNODON DISTRICT 4 4 7300.0 7300.0 5 8 810.0 2 11 KREMINNA DISTRICT 17 13 2 2 209802.0 196867.3 2620.0 10314.7 3 3 53.6 20 LUTUHINE DISTRICT 8 8 1964.0 1964.0 9 57 3726.0 5 22 DISTRICT 1 1 25.0 25.0 1 DISTRICT 11 10 1 61700.0 41700.0 20000.0 11 DISTRICT 9 1 8 1372.0 800.0 572.0 70 73 1246.8 1 80

SVERDLOVSK CITY AND DISTRICT 1 1 30000.0 30000.0 1

SLOVYANOSERBSK DISTRICT 5 5 2920.0 2920.0 14 33 6694.0 19 DISTRICT 9 2 7 19415.0 9000.0 10415.0 72 146 120219.0 2 83 DISTRICT 17 15 2 174850.2 168650.2 6200.0 17 SHCHASTIA CITY 0 0.0 14 9 314.4 14 TOTAL – LUHANSK OBLAST 238 43 12 183 859417.4 415684.2 89720.0 354013.2 667 1844 234995.7 90 995 DONETSK OBLAST ADVIIVKA 0 0.0 7 94 2303.0 1 8 ARTEMIVSK 12 1 1 10 6286.5 1300.0 2000.0 2986.5 25 1648 3307.0 2 39 6 HORLIVKA 16 1 5 10 30340.0 250.0 20300.0 9790.0 14 2 13028.0 6 36 6 6 2651.0 2651.0 11 58 3472.0 17 DONETSK 48 48 3362590.3 3362590.3 168 1367 54198.2 50 266 0 0.0 2 2 KRAMATORSK 28 6 22 82819.0 68529.1 14289.9 243 515 25369.0 5 276 KIROVSKE 0 0.0 1 1 0 0.0 3 3 1 1 45.0 45.0 2 19 650.0 1 4 4 4 4400.0 4800.0 9 186 23170.0 1 14 4 4 1455.0 1455.0 4 KHARTSYZSK 2 2 26.0 26.0 18 175 9044.0 20 ILOVAISK 7 7 2481.0 2481.0 17 151 19351.0 1 25 ZUGRES 1 1 10000.0 10000.0 1 DISTRICT 3 3 870.0 870.0 6 6 776.0 9 KRASNYI LYMAN DISTRICT 12 1 11 21410.0 5000.0 16410.0 13 136 2876.0 2 27 MARYINKA DISTRICT 0 0.0 4 52 3820.0 1 5 DISTRICT 4 1 3 10970.0 10000.0 970.0 1 1 25.0 5 SLOVYANSK DISTRICT 27 25 2 158071.6 20000.0 138071.6 18 357 14376.0 12 57 SHAKHTARSK DISTRICT 3 3 8700.0 8700.0 7 7 3048.0 10 YASYNUVATE DISTRICT 1 1 10000.0 10000.0 1 ENERGY FACILITIES (belonging to 52 52 71800.0 71800.0 52 several territories) 145829. TOTAL – DONETSK OBLAST 231 2 41 188 3784915.321 1550 3637936.2 563 4774 178813.2 88 783 1 RAILWAY INFRASTRUCTURE 190 190 900000.0 333600.0 566400.0 190 GRAND TOTAL (Donetsk and 235549. 659 45 53 561 5544332.7 750834.2 4558349.4 1230 6618 413808.9 178 1968 Luhansk oblasts) 1 RESIDENTIAL SECTOR, н/д 1873 530342.0 UNCONFIRMED INFORMATION

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