Ukraine to get $200 mln World Bank grant for energy infrastructure repair project
MOSCOW. April 13 (Interfax) - The World Bank has announced $200 million in grant financing for a project that will repair Ukraine's energy infrastructure to be provided by the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund.
"Additional funding of up to $300 million is envisaged to come from partners through grants and other contributions as the project expands its scope," the World Bank said in a press release.
"Energy infrastructure has suffered $11 billion in damages over the last year and is one of the most critical areas where Ukraine needs urgent support," the press release quoted World Bank Managing Director of Operations Anna Bjerde as saying.
The World Bank said restoring the energy grid is a top priority that the Ukrainian government has identified for 2023, as it accounts for 11% of estimated needs. The restoration project will support emergency repairs to the electricity transmission and heating infrastructure by procuring critical equipment, including autotransformers, transmission transformers, switchgears and circuit breakers, relay protection devices and other equipment for electricity supply, and mobile heat-only boilers, mobile mini cogeneration units, as well as other equipment and parts for heating infrastructure.
The World Bank says that during the fall and winter months, more than 50% of Ukraine's power infrastructure was damaged, resulting in power outages across the country and contributing to food, heating, and water supply disruptions. Significant damages to transmission substations continue to constrain their output.
"To date, the World Bank has mobilized more than $23 billion in emergency financing for Ukraine, including commitments and pledges from donors," the press release says.
Ukrainian Prime Minister Denis Shmygal said on Telegram that an agreement on the allocation of the $200 million was signed with Bjerde in Washington.
"The funds raised from the World Bank will be used to restore the network and heat supply systems in Kiev, Kharkov, Nikolayev, Sumy and the cities of the Chernigov region," he said.
The Ukrainian government, World Bank Group, European Commission and the UN have raised their estimate of the country's needs for recovery to $411 billion as of February 24, 2023, from $349 billion as of June 1, 2022.