World Bank Board of Directors approves $750 million project for Ukraine

The World Bank's Board of Directors has approved a new systemic project in Ukraine, Supporting Recovery through Reasonable Fiscal Governance (SURGE). At the stage of approval, the planned total project volume is about USD 750 million for 2024-2027.

This was reported by the Government Portal.

Funding for the project will consist of a USD 450 million loan from the International Bank for Reconstruction and Development (IBRD) from the Trust Fund for Ukraine's Necessary Credit Support (ADVANCE Ukraine), supported by the Government of Japan, and a USD 300 million loan from the Bank's Special Program for Ukraine and Moldova (SPUR) Crisis Fund.

As part of the IBRD loan agreement, Ukraine expects to draw down the funds by the end of 2024.

The project aims to create the necessary environment and institutional framework for the effective and accountable implementation and financing of climate-smart recovery.

SURGE will be implemented using the Program-for-results financial instrument, which provides for the achievement of indicators, based on the results of verification of which the general fund of the state budget of Ukraine will receive a loan determined for each indicator in the international agreement.

The project aims to support the Government of Ukraine's efforts to establish an effective public investment management system in the context of post-war recovery and reconstruction, improve fiscal management at the local level, and enhance medium-term and program budgeting at the local level and revenue administration.

In addition, to support the implementation of SURGE-supported institutional reforms, the Strengthening the Government's Capacity to Implement Fiscal Reform (STRONG) project was approved, which will receive a $10 million grant from the Ukraine Recovery, Rehabilitation, Trust Fund (URTF).

The relevant international agreements with the World Bank are expected to be signed in the near future, the government said.