. We all see the extraordinary courage and dedication to freedom from the Ukrainian people. Strong support from donor inflows, much of this having been channelled through the World Bank’s Public Expenditures for Administrative Capacity Endurance (PEACE) Project, has provided the necessary resources for Ukraine’s government to provide essential services to its people and mitigate macroeconomic risks.
Despite a significant drop in revenues, the government has maintained continuity in essential services to its citizens including those outside Ukraine, keeping schools and hospitals open and paying pensions as well as teachers’ and civil servants’ salaries.Bolstering Ukraine’s social and economic fabric and ensuring that the country maintains a functioning administration remain key priorities for the international community.
The funding was made possible through the generous contributions of our donor partners, including governments of the United States, UK, EU countries, and Japan. Our early assessment, completed in September 2022, estimated the cost of rebuilding Ukraine to be at $350 billion. An updated assessment reviewing the impact from a full year of war is due ahead of our Spring Meetings in April.
Increased attacks on Ukraine’s vital infrastructure, including roads, power plants and energy distribution networks require urgent repairs. Our assessment of the impact to the energy sector indicates that current damage to energy infrastructure is more than 5 times compared to June 2022.
With decades-long experience of working in countries affected by fragility, conflict and violence, we, at the World Bank, know that limiting human capital losses and strengthening the government of Ukraine’s planning and implementation capacity is critical to the success of relief and repair efforts. It will also facilitate the massive task of rebuilding the country and its economy after the war ends.
The country needs to keep conducting emergency repairs to roads, bridges, hospitals, power plants and energy distribution grids to improve living conditions for its embattled citizens and sustain trade and economic activity. Working with the Government of Ukraine, the World Bank has identified priority projects for immediate action to repair damaged infrastructure and launched the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) to channel grants from international donors through rapid transfer mechanisms, with strong oversight in place to ensure that funds are allocated and used effectively.
With extensive expertise in reconstruction and experience from around the world, the World Bank can provide technical assistance and policy advice to promote reforms, including climate change action, that will help Ukraine chart a sustainable future and fulfil its goal of joining the European Union. The World Bank’s sister organizations, the International Finance Corporation and the Multilateral Insurance Guarantee Agency are also very well placed to support the much-needed participation of the private sector – international and domestic – in the recovery and reconstruction. IFC’s and MIGA’s support to date is already having catalytic impact.
As countries around the world struggled to recover from the COVID-19 pandemic, the war, which is causing unimaginable suffering in Ukraine itself, has also triggered spiking energy prices and food shortages that affect the lives of millions of people beyond the country’s borders.
As the war enters its second year, we all hope that peace will soon return. Rebuilding Ukraine will take years and require our steady, collective assistance. The World Bank will continue to cooperate with the government of Ukraine and help address the country’s short- and long-term needs with contributions from donors and working with partners.
By working together and harnessing the power of cooperation, the international community can amplify the benefits of assistance to Ukraine. Furthermore, helping the government of Ukraine mitigate the impacts of the war and preparing the country for a sustainable and peaceful future will also contribute to the global economic good.