By KYIV. Dec 21 (Interfax-Ukraine) – The World Bank has approved a new financing package totaling $610 million to address urgent needs in Ukraine: $500 million under the Public Expenditures for Administrative Capacity Endurance (PEACE) Project and $110 million under the Health Enhancement and Life-saving (HEAL Ukraine) Project.
According to a World Bank’s press release on Tuesday evening, $600 million of loans from this funding are supported by a guarantee from the United Kingdom for $500 million and Spain for $100 million, respectively, and a $10 million grant from the Global Financing Facility for Women, Children, and Adolescents (GFF).
"Russia’s invasion of Ukraine continues to have devastating economic and humanitarian consequences, impacting the health sector, critical energy infrastructure, and transport networks," World Bank Group President David Malpass said in the release.
He said that 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 bank said that 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. To date, we estimate that 12 million people in Ukraine have benefitted from the PEACE project.
The HEAL Ukraine Project will improve and strengthen primary health care, address increased demand for mental health and rehabilitation services due to the war. The initial funding for the project includes a EUR 100 million IBRD loan, 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).
The World Bank said that as of December 6, 2022, 507 healthcare facilities, equivalent to 5.5% 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% 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.
