The World Bank has approved a new system project in Ukraine "Supporting Reconstruction through Smart Fiscal Management" (SURGE). The total amount of the project reaches about 750 million dollars for the years 2024-2027. This is reported by the press service Ministry of Finance.
The financing will consist of a loan from the International Bank for Reconstruction and Development (IBRD) in the amount of $450 million from the Trust Fund for Providing Ukraine with the Necessary Credit Support (ADVANCE Ukraine), supported by the Government of Japan, as well as a loan of $300 million from the Special Recovery Program for Ukraine and of Moldova (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.
In the near future, the relevant international agreements with the World Bank are expected to be signed, the Ministry of Finance reported.
What will the funds be used for?
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.
According to the Ministry of Finance, the implementation of SURGE will be carried out using the financial instrument "Program-for-results" (Program-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 by each indicator in an 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, the Ministry of Finance added.
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