The World Bank has announced a $750 million support package aimed at aiding Ukraine's reconstruction efforts. The initiative, known as Supporting Reconstruction through Smart Fiscal Governance (SURGE), is designed to enhance public investment management and fiscal governance at both central and local levels in Ukraine.
SURGE will be implemented using the World Bank’s Program for Results financing instrument. This approach supports government initiatives focused on reforms, modernizing revenue administration, and improving the allocation of resources to local governments based on their service delivery needs. The Ministry of Finance of Ukraine will oversee the execution of this program.
In addition to SURGE, a $10 million grant project called Strengthening Government Capacity for Fiscal Reform Implementation (STRONG) was approved on November 4, 2024. This project aims to address skills gaps within Ukrainian public administration by providing technical assistance necessary for institutional reforms aligned with SURGE.
Bob Saum, World Bank Country Director for Eastern Europe, stated: “It is remarkable to see that despite the devastating damage that Ukraine is experiencing during the third year of the war, all state institutions operate without disruptions, and key state services are provided to citizens in full capacity.” He emphasized the importance of developing long-term capacities for development and preparing for European Union accession.
The financing for SURGE includes $450 million from Japan-supported ADVANCE Ukraine trust fund and a $300 million credit from the International Development Association (IDA) Special Program for Ukraine and Moldova Recovery. The results-based financing can be expanded if additional funds become available.
SURGE forms part of an international support package intended to meet Ukraine's financial needs through 2024. Other projects include emergency operations across various sectors such as health, education, transport, energy, housing, agriculture, and private sector programs.
Since Russia's invasion of Ukraine began, support mobilized by the World Bank Group has enabled essential services reaching over 15 million Ukrainians. The World Bank Group has facilitated more than $50 billion in financing commitments from donors including countries like the United States, Japan, United Kingdom among others.