BAKU, Azerbaijan, August 13. The Estonian Center for International Development (ESTDEV) and the Japan International Cooperation Agency (JICA) have signed a cooperation agreement in Tokyo to construct apartment buildings for internally displaced people in Ukraine’s Zhytomyr region, Trend reports.
Under the agreement, Japan will join Estonia’s apartment construction project by providing facade materials for a new residential building in the town of Brusyliv.
The materials will be supplied by NICHIHA Corporation, one of Japan’s leading producers of fiber cement facade panels. This initiative is part of JICA’s program to engage Japan’s private sector in Ukraine’s reconstruction.
The partnership was announced at a high-level Ukraine Business Forum in Tokyo, attended by Japan’s Vice Minister of Economy, Trade and Industry Akiyoshi Kato, JICA Vice President Shohei Hara, JETRO Director General Norihiko Ishiguro, Ukraine’s Deputy Prime Minister for European Integration Taras Kachka, and First Lady of Ukraine Olena Zelenska. Estonia was represented by Oliver Ait, the Embassy’s Business and Investment Adviser in Tokyo.
“JICA is working with 12 Japanese companies, including NICHIHA, to expand private sector participation in Ukraine’s recovery. We are grateful to the Estonian government and ESTDEV for their efforts in delivering our first joint project. We look forward to continuing to explore future cooperation opportunities in support of Ukraine,” said Kei Toyama, Director General for the Middle East and Europe at JICA.
Oliver Ait emphasized that bilateral relations between Estonia and Japan have developed into a dynamic partnership covering business, innovation, and security.
“As both countries are long-term supporters of Ukraine, I am pleased to see ESTDEV, JICA, and private sector partners working together on reconstruction. The Estonian Embassy in Tokyo will continue to support and expand this cooperation,” he said.
The joint project will deliver an 18-apartment modular wooden building in Brusyliv, meeting EU energy efficiency standards, following passive house principles, and utilizing solar power. ESTDEV will oversee the design, procurement, production, installation, and project management.
Following a recent tender, ESTDEV signed a 1.99 million euros contract with Estonia’s largest modular housing producer, Harmet OÜ, which will manufacture, transport, and install the modules in Ukraine. The building, including an integrated bomb shelter, is expected to be completed by spring 2026.
“Millions of Ukrainians have lost their homes and need not just temporary shelter but a permanent place to rebuild their lives. Estonia has world-class expertise in modular wooden housing, one of the fastest and most cost-effective ways to create quality homes. That is what we are offering Ukraine,” said Margus Gering, ESTDEV’s Director for Ukraine Reconstruction and Head of the European Region.
"We are grateful to JICA for their trust. Launching this first joint project offers both countries’ private sectors the opportunity to contribute to Ukraine’s recovery. Together with Japan’s NICHIHA and Estonia’s Harmet, we are not only building homes but also strengthening local construction capacity, which is critical for the country’s rebuilding. I believe the Brusyliv project marks the beginning of a long-term Estonia–Japan partnership in Ukraine," he added.
According to the International Organization for Migration (IOM), there are approximately 3.7 million internally displaced people in Ukraine.
Zhytomyr region, where Estonia has concentrated much of its reconstruction work, received about 126,000 displaced persons during the early months of the war, with 56,000 remaining. Housing shortages remain one of the area’s biggest challenges, making Estonia’s construction projects critical to addressing the crisis.
In addition to the Brusyliv development, ESTDEV is also renovating an apartment building for displaced people in the town of Ovruch in western Ukraine.