Japan contributes $471 mln to WB's URTF fund for Ukraine
MOSCOW. April 24 (Interfax) - The Japanese government has announced a grant contribution of $471 million to the World Bank's Ukraine Relief, Recovery, Reconstruction, and Reform Trust Fund (URTF).
"This contribution is part of a $5.5 billion pledge Japan made in February to help restore destroyed infrastructure and help the people of Ukraine rebuild their lives. Of this pledge, a $5 billion credit enhancement will back World Bank loans to Ukraine in the coming year," Ukrainian media quoted a World Bank press release circulated on Saturday.
Kentaro Ogata, deputy vice minister for international affairs at the Japanese Finance Ministry, said Tokyo expected its contributions to be used efficiently and effectively to meet Ukraine's most urgent needs, such as repairing critical infrastructure.
The URTF is a multi-donor trust fund facility supporting the World Bank's emergency operations in Ukraine across key sectors including transport, health, and energy. These projects reflect the country's relief needs outlined in the updated Rapid Damage and Needs Assessment (RDNA) released last month and are designed to be adaptable to on-the-ground events while making impacts and disbursing rapidly.
The grant contribution more than doubles the URTF's funds, bringing the total to over $850 million in resources to support pressing repairs needed for energy infrastructure, roads, bridges, housing, schools, and clinics, the WB said. The URTF is currently supporting the Restoration Project of Winterization and Energy Resources, the Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project and the Health Enhancement and Lifesaving in Ukraine (HEAL) project.
In the RDNA, the World Bank warned that Ukraine was facing an additional funding gap of $11 billion for critical economic and capital expenditures in 2023.
The URTF was established in December 2022. The Fund aids Ukraine in planning and implementing its recovery, resilient reconstruction, and reform agenda. With the framework approach, the URTF is ensuring that the Ukrainian authorities can leverage multiple sources of financing efficiently and at scale.
Strategic guidance on URTF activities is provided by the Partnership Council. It is co-chaired by the World Bank Group and the Government of Ukraine, with the development partners as members. Contributors to the URTF include Austria, Canada, Iceland, Japan, Lithuania, the Netherlands, Norway, Sweden, Switzerland. The Program Management Team is responsible for the day-to-day management of URTF's trustee funds.