World Bank Aims To Expand Ukraine Aid For Energy, Transport Projects During Recovery

The World Bank is looking to enhance aid to Ukraine for "urgent repair projects" in the transport, energy and housing sectors, the bank's director for operations Anna Bjerde said on Tuesday ahead of the Ukraine Recovery conference in London.

The Washington-based lender has disbursed over $21 billion to Ukraine, mainly via grants, since the war started in February 2022, focused on government expenditure.

"The budget support will continue, but now there is a comprehensive pivot to the country's recovery," Bjerde said.

The Ukraine Recovery conference on June 21-22 will focus on building international support for Ukraine's recovery from war, and how the private sector can help with the reconstruction.

The World Bank has already mobilised financing support for the transport and energy sectors.

It is now looking to expand its aid to bolster individual households ahead of winter and help farmers get subsidies to plant their harvest given a backdrop of higher interest rates globally, Bjerde said.

Ukraine is a major global grain grower and exporter, but this year's output is expected to fall to around 45 million tonnes from 53 million in 2022 due to Russia's invasion.

"The war is going to be long, so the economy needs some basic revival even if no big reconstruction can be done yet," World Bank regional country director Arup Banerji said.

The lender has identified at least $800 million needed to repair housing.

The financing aid to support the recovery of some sectors will be a mix of loans and grants, bank officials added, without providing further detail.

"We expect some pledges confirmed this week" during the conference, Bjerde said.

Political and business leaders gathering in London will seek to tackle short-term funding issues and pool long-term reconstruction efforts to shore up war-torn Ukraine.

The summit, co-hosted by Ukraine and the UK, aims to revive discussions over a combination of public and private sector involvement.

The World Bank estimated in March that Ukraine's reconstruction will cost at least $411 billion to cover the damages during the first year of the war, two times the country's domestic product before the Russia invasion. The 2023 estimates will be published early next year.

Around $14 billion is needed for critical and priority reconstruction in 2023.