Ukrainian Finance Ministry expects to receive $400 mln under World Bank's SURGE program

MOSCOW. Nov 14 (Interfax) - Ukrainian Finance Minister Sergei Marchenko and World Bank Regional Director for Eastern Europe Bob Saum signed financial agreements under the new systemic project Supporting Reconstruction through Smart Fiscal Governance (SURGE) on Wednesday.

"The planned total funding for the project is $750 million. It is expected that Ukraine will complete the measures envisaged by the Loan Agreement with the [International Bank for Reconstruction and Development] IBRD by the end of 2024 and receive funds in the amount of $400 million," Ukrainian media quoted the Finance Ministry as saying in a statement on its website.

The documents that were signed include an agreement on a $450 million loan from the IBRD through the ADVANCE Ukraine Trust Fund, supported by the government of Japan, and an agreement on a $300 million loan from the bank's Special Program for Ukraine and Moldova Recovery (SPUR), it said.

"The implementation of the SURGE project will help the Ukrainian government improve the public investment management process, making it more efficient and transparent. This is an important step toward further meeting Ukraine's recovery needs," Marchenko said.

In addition, the parties signed a $10 million grant agreement under the Strengthening Government Capacity for Fiscal Reform Implementation (STRONG) investment component from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). The STRONG project aims to facilitate the efficient implementation of institutional reforms as part of SURGE.

SURGE will be put into practice using the Program-for-Results financial instrument. This project is also meant to help improve fiscal management at the local level, and enhance mid-term and program budgeting at the local level and revenue administration.