WASHINGTON, April 21, 2023 - The Government of Japan has announced a grant contribution of US$471 million to the World Bank's Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF) in support of ongoing relief efforts in Ukraine. This contribution is part of a US$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 US$5 billion credit enhancement will back World Bank loans to Ukraine in the coming year.
"Japan continues to stand by Ukraine and the Ukrainian people," said Kentaro Ogata, Deputy Vice Minister for International Affairs of the Ministry of Finance of Japan. "We have been working closely with the World Bank in providing support for Ukraine. We are grateful to the World Bank Group for its efforts to channel and safeguard donors' fund and expand donors' base. We expect our contributions to be efficiently and effectively used to meet Ukraine's most urgent needs such as repairing critical infrastructure. We look forward to further deepening our cooperation with the World Bank Group."
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.
"Russia's invasion of Ukraine continues to exact a devastating economic and humanitarian toll on the country," said Antonella Bassani, World Bank Vice President for Europe and Central Asia. "We are grateful to the government of Japan for its generous contribution to the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund. This funding will help us channel funds to the most critical areas in the country's recovery and toward Ukraine's long-term development goals."
The grant contribution more than doubles the URTF's funds, bringing the total to over US$850 million in resources to support pressing repairs needed for energy infrastructure, roads, bridges, housing, schools, and clinics. 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 estimated that for 2023 Ukraine is facing an additional funding gap of US$11 billion for critical economic and capital expenditures.
About the URTF:
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.
