World Bank to provide new $750 mln support package to Ukraine - PM Shmygal
MOSCOW. Nov 8 (Interfax) - The World Bank has announced a new support package of $750 million for Kiev, Ukrainian Prime Minister Denis Shmygal said.
"The funds will be provided under the Supporting Reconstruction through Smart Fiscal Governance (SURGE) project intended to support institutional reforms that are key to accession to the European Union. Part of the money will come from the ADVANCE fund, which is supported by the Japanese government," Ukrainian media outlets quoted Shmygal as saying on social media on Friday.
The implementation of the program will help strengthen government institutions in times of crisis and ensure that citizens have full access to key public services, he said.
"Reforms under the project will focus on improving the efficiency of public investment and public financial management," Shmygal said.
In addition, to support the Ukrainian government in the implementation of the SURGE program, the Strengthening Government Capacity for Fiscal Reform Implementation (STRONG) project, which would be financed as part of a ten-million-dollar grant, was approved on November 4, 2024 in order to help bridge the skills gaps within the Ukrainian public administration and ensure that Ukrainian authorities receive the technical assistance needed to draft and execute institutional reforms aligned with the SURGE project.
"As the country moves forward, it will be necessary to develop its capacity for long term development, prepare for European Union accession, manage public infrastructure projects and public finances effectively, and enhance revenue administration," World Bank Country Director for Eastern Europe Bob Saum said, commenting on the new project.
The World Bank added that financing for the SURGE program includes $450 million from the ADVANCE Ukraine trust fund supported by the Japanese government and a $300-million loan from the International Development Association Special Program for Ukraine and Moldova Recovery. The program envisages results-based financing that can be scaled-up as additional funds become available.
The Ukrainian Finance Ministry noted that it is planning to attract the funds envisaged as part of the loan agreement with the International Bank for Reconstruction and Development as early as before the end of 2024. The signing of relevant agreements is expected in the near future.
