Ukraine plans to mobilize USD 200 million in grant financing under the PEACE project of the World Bank, funded through a contribution from Norway

In Kyiv, Deputy Minister of Finance of Ukraine Olga Zykova met with a World Bank Governance Mission. The meeting was attended by Practice Manager for the Governance Global Practice in Europe and Central Asia Adrian Fozzard, PEACE Project Team Leader Klaus Decker, Operations Manager Kevin Tomlinson, Lead Economist Yue Man Lee, Senior Public Sector Specialist Urška Zrinski, and Senior Governance Specialist Andžs Ubelis.

The World Bank Mission finished its work in Ukraine, which took place from February 16 to 20.

The parties discussed, in particular, the implementation of the PEACE in Ukraine and SURGE projects, the I_CAN initiative, and further steps in advancing the Public Investment Management (PIM) reform.

Olga Zykova thanked the World Bank team for its support and leadership in implementing the PEACE project (“Public Expenditures for Administrative Capacity Endurance”), which has become a key instrument for coordinating international budget support.

“Thanks to flexibility and swift decision-making since the beginning of the full-scale invasion, uninterrupted financing of critical budget expenditures has been ensured. Under the project, since 2022 Ukraine has already received USD 49.5 billion, which enabled the timely payment of salaries to teachers, healthcare workers and civil servants, as well as pensions and social benefits,” the Deputy Minister noted.

On February 13, Ukraine received USD 690.8 million under the project to finance priority expenditures. Preparations are currently underway for a new USD 200 million grant agreement provided by Norway to the URTF in support of PEACE.

The project is subject to regular audits. The audit covering the period from July 1, 2024 to June 30, 2025 has been completed, and preparations for the next audit cycle will begin shortly.

The parties also reviewed progress under the SURGE project. The “Supporting Reconstruction through Smart Fiscal Governance” project envisages Disbursements Linked to Results - DLRs. In particular, meeting the targets under the public investment management reform – including the application of methodologies for project monitoring, reporting, and evaluation, as well as the publication of medium-term budget plans by local authorities – will enable the mobilization of USD 46.71 million. Work is also ongoing on the Concept for establishing a unified digital ecosystem for public investment management. To date, more than USD 870 million has already been disbursed under SURGE.

Under the I_CAN project management capacity building programme for Ukraine, nationwide training across all regions of Ukraine is planned for 2026 to strengthen civil servants’ capacity in cooperation with international partners and investment project management. Pilot trainings have already been held in Zhytomyr and Zhytomyr region and are taking place this week in Kyiv.

The meeting also addressed the implementation of the Public Investment Management reform. In 2024–2025, its methodological framework was developed, amendments to the Budget Code were adopted, and a Unified Public Investment Portfolio was established, comprising 195 projects and programs with a total value of UAH 12.6 trillion. For 2026, UAH 111.5 billion has been allocated in the State Budget for the preparation and implementation of public investment projects. Key priorities include strengthening institutional capacity, digitalization, improving project preparation quality, and ensuring coherence in strategic planning.

The Deputy Minister reaffirmed that the Government will continue close coordination with the World Bank to ensure macro-financial stability, maintain budget resilience, and advance key structural reforms.