On November 7, the Board of Directors of the World Bank approved a new systemic project in Ukraine "Supporting Reconstruction through Smart Fiscal Governance" (SURGE).
This is stated in the notification of the Ministry of Finance, the Ukrainian News agency reports.
At the stage of approval, the planned total volume of the project reaches about USD 750 million for 2024-2027.
Financing under the Project will consist of a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of USD 450 million from the Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine), supported by the Government of Japan, as well as a loan in the amount of USD 300 million from the Special Program for Ukraine and Moldova Recovery (SPUR) of the Bank's Crisis Fund.
As part of the IBRD Loan Agreement, Ukraine expects to attract the provided funds by the end of 2024.
The goal of the Project is to create the necessary environment and institutional foundations for effective and accountable implementation and financing of climate-oriented recovery.
The implementation of SURGE will be carried out using the financial instrument "Programme-for-results", which provides for the achievement of indicators, based on the 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 efforts of the Government of Ukraine aimed at creating an effective public investment management system in the conditions of post-war recovery and reconstruction, improving fiscal management at the local level, improving medium-term and program budgeting at the local level, and revenue administration.
Also, in order to support the implementation of institutional reforms supported by SURGE, the investment project "Strengthening Government Capacity for Fiscal Reform Implementation" (STRONG) was approved, for the financing of which grant funds in the amount of USD 10 million will be attracted from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).
Signing of relevant international agreements with the World Bank is expected in the near future.
As the Ukrainian News agency earlier reported, on November 4, the leadership of the Ministry of Finance of Ukraine, the Ministry of Economy of Ukraine and representatives of the World Bank signed financial agreements under the new Resilient, Inclusive and Sustainable Enterprise Program (RISE).
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