The Cost Of The Kakhovka Dam Destruction in Ukraine

10th July 2023

The destruction of the Kakhovka Dam in June 2023 has caused significant economic and environmental damage. Approximately 100,000 people were evacuated or displaced over a large area, equivalent to the size of Switzerland, affecting regions from Kryvyi Rih in the north to Melitopol in the east and the Crimean Peninsula in the south. The estimated loss is $4 billion, with long-term costs amounting to an additional $2 billion due to problems with water supply, irrigation, and navigation on the Dnipro River.

The collapse of the dam is one of several disasters resulting from Russia's invasion of Ukraine. The immediate economic losses include reduced output from hydroelectric stations, halted industrial production in the affected area, and the destruction of irrigation systems, leading to a significant decline in agricultural harvests. The long-term environmental damage includes the leakage of oil and chemicals into the Dnipro River, posing a threat to the ecosystem.

Reconstruction efforts are already being discussed, considering the overall impact of the war and the assistance Ukraine will require. The Kakhovka disaster adds to the reconstruction needs, which encompass infrastructure, agriculture, and education.

The economic costs of the Kakhovka Dam disaster are estimated at nearly $4 billion. This includes losses in the housing sector, damage to water pipelines, disruption of livestock agriculture, and damages to the energy sector. The industrial sector and other businesses also incurred significant losses. The environmental costs are estimated to be around $2 billion, including the impact on the riverbed drainage and the threat to animal populations.

The financing of the reconstruction is expected to involve aid from Western donors and reparations from Russia. The focus will be on rebuilding human capital and infrastructure. The rehabilitation of the Kakhovka Dam, similar to the post-World War II rehabilitation of the DniproHES dam, is essential for restoring the livelihoods of farmers and meeting energy needs. It is important to follow regular procurement rules to ensure quality and competitive prices during the reconstruction process.

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Read background at Wikipedia