Ukraine to receive over $246 million from Japan under World Bank Project to support fiscal management

Ukraine and the International Bank for Reconstruction and Development have signed a loan agreement worth USD 246.5 million under the SURGE program, “Supporting Reconstruction through Smart Fiscal Governance.”

The funds will be mobilized from the ADVANCE Ukraine Trust Fund, supported by the Government of Japan.

The Project’s objective is to support the Government of Ukraine’s efforts to create an effective public investment management system for post-war recovery and reconstruction, improve fiscal management at the local level, enhance medium-term and program budgeting, and strengthen revenue administration.

By the end of 2025, USD 229.7 million is expected to be directed to the general fund of the State Budget, while USD 16.8 million will be allocated for interest capitalization to reduce Ukraine’s debt servicing costs in the coming years. 

The agreement was signed by Minister of Finance of Ukraine Sergii Marchenko and World Bank Regional Director for Eastern Europe Bob Saum.

The SURGE Project has been implemented in Ukraine since 2024. During this period, the World Bank has signed agreements with Ukraine totaling USD 760 million in financing under the Project, including USD 10 million in grant funding.

The Project uses the Program-for-Results (PforR) financing instrument, which links disbursements to the achievement of specific performance indicators.

“Cooperation under the SURGE Project allows us not only to manage public investments and resources more effectively but also to strengthen the financial resilience of communities, improve transparency in public spending, and increase taxpayer confidence. I am grateful to the World Bank for its support to Ukraine and for the trust that underpins our shared success in recovery,” emphasized Minister of Finance Sergii Marchenko following the signing of the agreement.