WB plans $200m for Ukraine’s energy infrastructure

The World Bank has provided Ukraine with a grant of $200 million to help repair its energy infrastructure, which has been badly damaged by Russian attacks on its neighbour. Over 50% of Ukraine’s power infrastructure has been affected, with the East suffering particularly badly. The funds have been provided by the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund, with the aim of attracting up to $300 million more from partners as the project expands. Emergency repairs to electricity and heating infrastructure will be targeted in this latest project.

The World Bank has been a significant contributor to Ukraine’s reconstruction efforts since Russia’s invasion of the country in February 2022, mobilising over $23 billion in financing for the country, with $20 billion disbursed so far. However, more is still needed. According to a recent study by the World Bank, the United Nations, the European Commission and Ukraine, the country will need an estimated $411 billion for recovery and reconstruction. This figure is an increase on the $349 billion estimated in September and is likely to continue rising as the conflict continues.

At the recent roundtable on Ukraine held at the International Monetary Fund (IMF) headquarters, Ukrainian President Volodymyr Zelensky expressed gratitude for the support already given and urged for further backing. Meanwhile, Ukrainian Prime Minister Denys Shmygal called for allies to provide the $11 billion still needed in financing, emphasising the importance of the funding in helping to bring basic services to the people.

US Treasury Secretary Janet Yellen also urged allies and partners to continue their support of Ukraine, praising Kyiv’s anti-corruption efforts. The IMF has already approved a $15.6 billion support package for Ukraine, forming part of a $115 billion overall support package of debt relief, grants and loans by multilateral and bilateral institutions. Although Ukraine’s resilience has been praised, there is still much to be done to rebuild the country and provide its people with basic necessities.