Russia’s invasion of Ukraine continues to inflict a devastating toll on the country and is causing serious global repercussions. Ukraine’s recovery, reconstruction, and operating needs are staggering. According to the Third Rapid Damage and Needs Assessment (RDNA3), the estimated cost of Ukraine’s recovery and reconstruction stands at $486 billion over the next decade. The biggest needs are in housing (17%), transport (15%), commerce and industry (14%), agriculture (12%), energy (10%), social protection and livelihoods (9%), and explosive hazard management (7%).
With donor contributions, as of April 25, 2024, the World Bank has already mobilized over $42 billion in critically needed financing. The Bank has also started to secure medium-term financing to address Ukraine’s needs while the war is ongoing and after it ends.
A Heavy Toll
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URTF: Supporting Ukraine’s Recovery, Resilient Reconstruction and Reform
URTF is a key element of the World Bank Group’s Multi-Donor Resources for Institutions and Infrastructure (MRII) for Ukraine collaborative platform. It encompasses donor-funded initiatives of the World Bank, IFC, and MIGA, and is the Group’s common forum to coordinate priorities and fundraising efforts.
With a focus on strong government ownership and operational delivery, the URTF is channeling grant resources effectively to meet Ukraine’s massive needs. The fund is organized around two pillars:
- Help the Government of Ukraine sustain its administrative capacity, deliver services and conduct relief efforts.
- Plan and implement Ukraine’s recovery, reconstruction, and reform agenda.
The URTF Aims to Address the Uncertainty Resulting from the War by Supporting Flexible Programming That Can Respond to the Fast-Evolving Context
Urgent investment is needed now to repair destroyed energy infrastructure, roads, bridges, housing, schools, and clinics. To aid Ukraine’s economic recovery, the URTF is funding framework projects. These are Bank-supported emergency operations that mobilize partner resources through an innovative and flexible design. They reflect Ukraine’s relief needs outlined in the RDNA and are designed to be adaptable to events on the ground and scalable to integrate additional financing while making impacts and disbursing rapidly. They have been designed based on robust technical analysis and follow the World Bank’s tested fiduciary, environmental, and social frameworks for monitoring and reporting.
Supporting this framework approach, URTF is ensuring that Ukrainian authorities can quickly and effectively utilize these critical investments and leverage the multiple sources of financing efficiently and at scale.
Over time, the URTF will provide additional modalities of support, under the World Bank’s applicable policies and procedures:
- Investment Project Financing to continue critical funding and provide expertise for needed development across a host of sectors;
- Development Policy Financing for reforms and much needed budget support;
- Program-for-Results for Ukraine’s growing public sector capacity; and
- Analytical and technical assistance for planning, investment preparation, capacity building, and policy development.
Sustaining the government’s ability to deliver services is key to ensuring the long-term success of Ukraine’s recovery and reconstruction efforts. The URTF complements existing World Bank programs, including the Public Expenditures for Administrative Capacity Endurance (PEACE) project.
URTF Support for Ukraine’s Framework Projects
Framework Project | Development Objective | Funding Needs | Funding Secured |
Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) Project | Provide the means for mitigating the immediate impact that disrupted transport networks have on Ukraine’s population and economy. | $585 million | $50 million grant - URTF |
Restoration Project of Winterization and Energy Resources Ukraine | Enable the restoration of essential energy services in Ukraine. | $500 million | $200 million grant - URTF |
Restore and improve access to essential mental health and rehabilitation services, address urgent needs for health services, and provide financial protection in the emergency context. | $500 million | €100 million IBRD loan $10 million grant - GFF $10 million grant - URTF €100 million co-financing CEB loan | |
Support affected households to regain adequate housing through resilient repair of damaged housing stock; and support national government in priority climate-resilient policy reforms. | $800 million | $162.5 million – URTF
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Ukraine Agriculture Recovery Inclusive Support Emergency (ARISE) Project | Maintain inclusive agricultural production and provide immediate and effective response to an eligible crisis or emergency. | $700 million | $320 million – URTF $230 million – IBRD loan through credit enhancement from ADVANCE Ukraine TF |
World Bank Value Proposition
- Longstanding partnership with Ukraine. Over the past three decades, the Bank has implemented nearly 100 development projects and programs in Ukraine and deeply engaged with the authorities on the country’s critical reform agenda.
- Implementation capacity to support large-scale programs in partner countries, demonstrated all over the world.
- Expertise in convening, mobilizing and coordinating global support for countries impacted by fragility, conflict and violence.
- Global and multisectoral knowledge in relevant areas, including health, education and structural reforms.
- Ability to unlock private sector investment and technical assistance in support of Ukraine’s relief, recovery and resilient reconstruction efforts.
URTF Governance
The Partnership Council, consisting of development partners as members and the World Bank and Ukraine as co-chairs, provides strategic guidance on URTF activities.
The Program Management Team is responsible for the day-to-day management of URTF at the program level.
Last Updated: Apr 25, 2024
