Russia’s invasion of Ukraine continues to inflict a devastating toll on the country and is causing serious global repercussions.

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 recent Rapid Damage and Needs Assessment (RDNA2), the estimated cost of Ukraine’s recovery and reconstruction stands at $411 billion over the next decade. For 2023, Ukraine is facing an additional funding gap of $11 billion for critical economic and capital expenditures. The highest needs are in transport (22%), housing (17%), energy (11%), social protection and livelihoods (10%), explosive hazard management (9%) and agriculture (7%).

The country faces a humanitarian crisis, in 2022 its economy contracted by a third putting its public finances under heavy pressure. With donor contributions, as of April 6, the World Bank has already mobilized more than $23 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

• 13 million people were displaced, with eight million - seeking refuge outside the country.
• Poverty rose to 24%, pushing seven million people into poverty and reversing 15 years of development progress.

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 World Bank 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 RDNA2 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 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

Current Gap

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

$100 million grant - URTF

$485 million

Health Enhancement and Lifesaving (HEAL) Ukraine Project

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

$375 million

World Bank Group 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.

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