World Bank Boosts Support for Recovery in Ukraine
May 22, 2014
WASHINGTON, May 22, 2014 – The World Bank’s Board of Executive Directors today approved three new projects for Ukraine amounting to US$1.48 billion. This new financing will be reinforced by technical assistance and policy dialogue to help drive forward the essential structural and macroeconomic reforms.
“The Ukrainian authorities have developed a comprehensive program of reforms, which they are committed to undertake with support from the World Bank Group,” said World Bank Group President Jim Yong Kim. “We are stepping up our assistance to Ukraine because we want to help improve the lives of people in the country and to achieve economic recovery at a crucial time. The country’s leaders are determined to improve public services and back much-needed reforms, and we’re determined to help them.”
The three projects approved by the Board today are part of the World Bank Group’s overall assistance to Ukraine announced in March this year, which aims to provide up to US$3.5 billion by the end of 2014.
The US$750 million First Development Policy Loan will support high-priority reform measures to address key structural roots of the current economic crisis in Ukraine and to lay the foundation for inclusive and sustainable growth. It aims to promote good governance, transparency, and accountability in the public sector; strengthen the regulatory framework and reduce costs of doing business; and reform inefficient and inequitable utility subsidies while protecting the poor.
The US$382 million District Heating Energy Efficiency Project will support 10 municipal heating utility companies across the country by helping them enhance quality of their services and carry out efficiency improvements to cut production costs as well as harmful emissions. The project includes US$50 million from the Clean Technology Fund (CTF), which provides middle-income countries with resources to use low carbon technologies. Over 3 million Ukrainians are expected to benefit from the project.
The US$350 million Second Urban Infrastructure Project will provide funding for 10 participating water utilities across the country and a municipal solid waste company. It will assist the participating utilities in achieving a series of improvements in quality and efficiency of the services provided through the rehabilitation and upgrade of dilapidated water supply and wastewater infrastructure and institutional building. This will result in better access to water, wastewater and solid waste services to over 6 million citizens. The project includes US$50 million from the Clean Technology Fund (CTF).
The World Bank is a major development partner of Ukraine. With these new investments, the current World Bank’s lending portfolio will amount to US$3.39 billion through 11 operations in the country. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled over US$8.5 billion for 43 projects and programs.
About the World Bank Group
The World Bank Group (WBG) is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC), the Bank’s private sector arm; the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.
About the Clean Technology Fund
The Clean Technology Fund (CTF), one of two multi-donor Trust Funds within the Climate Investment Funds (CIFs), promotes scaled-up financing for demonstration, deployment and transfer of low-carbon technologies with significant potential for long-term greenhouse gas emissions savings. Channelled through the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and World Bank Group, the CTF finances 12 country programs and one regional program. For more information, please visit www.climateinvestmentfunds.org
- Philippines: World Bank Group President Speech at the Daylight Dialogue
- New Study Adds Up the Benefits of Climate-Smart Development in Lives, Jobs, and GDP
- Joint Vietnam-World Bank Group Study Will Seek Path for Higher Economic Growth
- Forests Are Creating Momentum for Climate Negotiations
- How Tanzania Plans To Achieve "Big Results Now" in Education