World Bank URTF MDTF Ukraine Relief, Recovery, Reconstruction, Reform

The URTF is by now well established and all approved projects are up and running. Implementation progress is so far a bit uneven across the different framework projects. The energy project REPOWER (which Sweden has indicated a preference for) is for example still in procurement mode and has not yet reached any beneficiaries. The same is true for the transport project RELINC. Since inception the URTF had received 1,8 billion dollars in contributions and disbursed 1,1 billion USD. The absolute majority of beneficiaries have been generated through the budget support operation the PEACE project (13 million out of a total of 14,6 million). With regards to distribution of beneficiaries 55 percent are women. The URTF has been very successful in mobilising additional financing for its projects. From donor contributions of 1,8 billion million dollars, the URTF the trust fund had been able to mobilise 3,4 billion dollars. Sector overview of URTF performance: The transport sector The RELINC project focuses on road and rail repair to support connectivity inside Ukraine and for export purposes. 700 meters of modular bridges were in procurement late 2023 and as well as manufacturing of flatbed wagons and procurement for rail repair. The project has been revised, primarily due to the closure of the Black Sea Grain Initiative. No beneficiaries have so far benefited from this project. It is envisaged that people living in liberated oblasts as well as displaced people returning home will be primary beneficiaries of the RELINC project. The energy sector The overall objective of REPOWER is to enable the restoration of essential energy services in Ukraine.This project has experienced delays due to (according to the World Bank) budgeting procedures within in Ukraine. The project consists of two main components. So far only the first of three planned components has received support/financing. Under the support to Ukrenergo, six autotransformers are under procurement and will according to plan be delivered in April 2025. The component which is supposed deliver support to heating infrastructure so far remains unfunded. The agriculture sector Access to finance is estimated to be the crucial issue for farmers, both small scale and commercial. The ARISE project is providing credit to commercial farmers and grants to small-scale farmers for keeping agricultural production going. The support is implemented by the Business Development Fund and through the government credit. programme 5-7-9. Beneficiaries can be divided into direct and indirect beneficiaries . Farmers are direct beneficiaries as the project support their income generation capacity. Indirect beneficiaries would be banks, input suppliers and traders who benefits from farmers have more liquidity. Moving further down the chain, another group of secondary beneficiaries would be food consumers who will benefit from better availability of food compared to if Ukrainian farmers were not able to farm. The housing sector The housing sector is the most affected one when it comes to damages. The primary beneficiaries are people whose homes have suffered partial damages. The project provides financial support to these households for restoration/ repairs. This support to individuals/households is accompanied by support from the World Bank to local governments in selected hromadas to respond to institutional needs to reform building standards to adhere to EU norms. Over 82 000 applications have been received for financial support. Around 50 000 households have so far received compensation. The health sector HEALs overall objectives are to restore and improve access to essential health care, address new and urgent needs for health services, and provide financial protection in an emergency context. The Health Enhancement project (HEAL) is on track with its deliveries. The project will likely be extended beyond its current closing date of December 2026. The project currently consists of two main components, one which disburse into the government budget for health services delivered (vaccines, psychosocial health services etcetera) and one investment component for rebuilding and reconstructing (also covering replacement of destroyed equipment). It was pointed out by the sector specialist that all procurement activities are fairly time consuming. The project has been the most successful when it comes to mobilising additional financing, for example a loan from the Council of Europe Bank. This success is probably mostly due to the fact that many donors and financiers have health as a priority sector and HEAL therefore fits into their portfolios. Budget support operations (PEACE) The development objective of PEACE is to contribute toward sustaining the government administrative and service delivery capacity to exercise core government functions at the national and regional levels. The project was initially approved as USD 1, 492 billion investment project financing (IPF). It was financed by access to a USD 1 billion equivalent non-concessional IDA credit and USD 492 million IBRD loan guaranteed by the Netherlands, Latvia, Lithuania, and the United Kingdom. A dedicated co-financing multidonor trust fund (MDTF) was established to support the project. As of December 31, 2023, PEACE had reached a total worth of USD 24,766 billion and disbursed over USD 23 billion. In December 2023, the URTF made a USD 190 million grant to support the administrative and service delivery capacity of the GoU through the PEACE project. An additional USD 295 million grant is under preparation for a total of USD 485 million. It will co-finance critical social expenditures to help sustain livelihoods of vulnerable persons.

The overall objective of the URTF is to assist the government of Ukraine to: 1) sustain its administrative and service delivery capacity and conduct relief efforts; and 2) plan and implement Ukraine's recovery, resilient reconstruction and reform agenda. Through the formulated preference in the administrative agreement Sida will seek to especially contribute to: - Increased capacity to ensure emergency heat and electricity supply for people and institutions in Ukraine. - Enhanced, life sustaining domestic heating and hot water heating for domestic dwellings and key institutions in Ukraine. - Re-established functionality of electricity transmission and distribution within Ukraine. - Restored ability to trade electricity between Ukraine and Europe.