Estonia and Japan join forces in Ukraine to build housing for IDPs

Japan will join Estonia’s housing construction project by supplying façade materials for an 18-unit apartment building in the city of Brusyliv, Ukraine, under JICA’s new initiative to engage Japan’s private sector in Ukraine’s reconstruction. The building’s façade materials will be procured from NICHIHA Corporation, one of Japan’s leading producers of fibre cement material. 

The new partnership between Japan and Estonia was announced at a high-level Ukraine Business Forum held in Tokyo. The event was attended by Japan’s Vice Minister of Economy, Trade and Industry, Kato Akiyoshi; JICA Vice President, Hara Shohei; Director General of the Japan External Trade Organisation (JETRO), Ishiguro Norihiko; Ukraine’s Deputy Prime Minister for European Integration, Taras Kachka; and First Lady of Ukraine, Olena Zelenska. Estonia was represented by Oliver Ait, Business and Investment Adviser at the Estonian Embassy in Tokyo. 

“JICA is supporting 12 Japanese companies, including NICHIHA Corporation, for the purpose of promoting private sector participation in the reconstruction of Ukraine,” said Toyama Kei, the director general of the Middle East and Europe Department at JICA. “We are deeply grateful to the Estonian government and ESTDEV for their efforts in realising this first collaboration, and it is a pleasure to work together on this project. We hope to continue exploring opportunities for cooperation in supporting Ukraine in the future.” 

According to Oliver Ait, the bilateral relationship between Estonia and Japan has grown into a broad and dynamic partnership, spanning areas such as business, innovation and security. “As both countries remain strong and consistent supporters of Ukraine, I’m pleased to see ESTDEV, JICA and private sector partners now working together to support Ukraine’s recovery and contribute to building a better future. The Embassy of Estonia in Tokyo remains dedicated to strengthening and broadening these types of partnerships,” said Ait. 

JICA-ESTDEV’s joint project in Brusyliv will deliver a modern, eco-friendly modular timber-frame apartment building, designed with energy efficiency, Passive House principles and solar readiness at its core. 

ESTDEV is responsible for the design, procurement, assembly, and overall execution of the project. Recently, ESTDEV finalised the procurement process for the design and production of modular wooden components. The 1.99-million-euro contract was awarded to Harmet OÜ, the largest manufacturer of modular buildings in Estonia. The new apartment building and its accompanying bomb shelter are scheduled to be completed in Spring 2026.  

“Russia’s war has displaced millions. What Ukrainians need now is not just shelter but dignified, permanent homes. That is why we at ESTDEV are focused on providing new homes for IDPs using Estonia’s expertise in wooden modular construction, which is one of the fastest and most affordable ways to build quality homes,” said Margus Gering, regional head of Europe at ESTDEV. “We are honoured to launch this first joint project with JICA in Brusyliv, which will provide opportunities for the private sector to join the reconstruction of Ukraine. We are proud to work alongside NICHIHA Corporation of Japan and Harmet of Estonia not only to build homes but to help rebuild Ukraine’s construction industry.” 

Gering added that beyond addressing urgent housing needs, this project creates opportunities for knowledge transfer, innovation and sustainable local development, saying, “We believe this is just the beginning of a broader, long-term partnership between Estonia and Japan in supporting Ukraine’s path to recovery.”  

The International Organization for Migration (IOM) estimates there are about 3.7 million IDPs in Ukraine. In the beginning of the war, the Zhytomyr Region, where Estonia has centred the majority of its reconstruction efforts, received about 126,000 IDPs, and about 56,000 of them still remain in the region. As a result, addressing the housing crisis continues to be one of the area’s most pressing challenges, making Estonia’s construction projects critically important. 

In addition to the Brusyliv housing project, ESTDEV is also transforming former barracks in the city of Ovruch into a modern apartment building for IDPs. 

Photo: JETRO