World Bank Approves Financing Package Totaling $610 Million to … – World Bank Group

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WASHINGTON, Dec. 20, 2022—The World Bank Group today announced a new financing package that includes projects to boost relief and recovery efforts for Ukraine amid the ongoing war. The World Bank will provide additional financing of $500 million through an IBRD loan that is supported by a guarantee from the United Kingdom for the same amount and mobilized under the Public Expenditures for Administrative Capacity Endurance (PEACE) Project. The World Bank will also support Ukraine with a new project to restore and improve access to health care and address new and urgent needs for health services due to the war. 
“Russia’s invasion of Ukraine continues to have devastating economic and humanitarian consequences, impacting the health sector, critical energy infrastructure, and transport networks,” said World Bank Group President David Malpass. “We welcome today’s financing support by our partners. The World Bank has mobilized $18 billion in emergency financing in support of the people of Ukraine since the beginning of the war, including commitments and pledges from donors, of which $15 billion has been disbursed.”
The additional $500 million in IBRD lending for the PEACE Project will help the Government of Ukraine with expenditures related to child and family benefits, salaries of public employees, and utility payments. Maintaining these critical public services is essential to limiting the loss of human capital and rebuilding the country and its economy after the war. To date, we estimate that 12 million people in Ukraine have benefitted from the PEACE project.
The Health Enhancement and Life-saving (HEAL Ukraine) Project will improve and strengthen primary health care, address increased demand for mental health and rehabilitation services due to the war, restore and strengthen service delivery in hospitals that are facing capacity constraints, and support capacity building for key health institutions. The initial funding for the project includes a EUR 100 million IBRD loan, backed by a guarantee from the Government of Spain, and a $10 million grant from the Global Financing Facility for Women, Children, and Adolescents (GFF). Additional funds for the project are expected to grow to a total of $500 million, starting with an upcoming $10 million grant through the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).
As of December 6, 2022, 507 healthcare facilities, equivalent to 5.5 percent of public providers, have been destroyed or damaged. Utilization of health services also significantly decreased during the first months of the war. In March 2022, the number of childhood vaccinations fell by 40 percent compared to the previous year and has not recovered. In September 2022, almost a third of people living in Ukraine reported that they could not afford to buy necessary medicines. In addition, the war has had a direct negative impact on the population’s mental health, exacerbating pre-existing issues that disproportionately affect women, including gender-based violence. War-related injuries have led to a significant increase in the need for rehabilitation services. 
The new financing package adds to several previously announced packages for the PEACE project, including the $1.49 billion Investment Project Financing (IPF) in June, the $4.5 billion in grant financing approved in August, the $530 million in loan guarantees in September 2022, and another $4.5 billion in grant financing approved in November 2022. See a full list of total World Bank Group mobilized financing for Ukraine.
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