Ukraine partners with World Bank for $600 mln project to boost private sector
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On November 4, the leaders of Ukraine's Ministry of Finance and Ministry of Economy, along with representatives from the World Bank, signed financial agreements for the new project called "Sustainable, Inclusive, and Ecologically Balanced Entrepreneurship" (RISE). The total funding for the project is 593 million US dollars.
The Ministry of Finance of Ukraine reported that.
The RISE PforR project aims to address critical issues that impede the private sector's sustainability, growth, and development. Implementation is scheduled for 2024-2027, and the total budget is over 1 billion US dollars.
RISE will be the World Bank's second project to be implemented using the Program-for-results (PforR) financial instrument. The goal of the PforR component is to assess and enhance progress in the following focus areas:
increasing the effectiveness of state support for small and medium-sized enterprises (SMEs) with a focus on green competitiveness:
- improving business environment and digital government services for business;
- ensuring access of SMEs to export markets.
The Finance Minister Serhii Marchenko signed two agreements to raise approximately $583 million through the RISE PforR scheme. As per the Loan Agreement for $283 million, Ukraine can receive the designated funding by the end of 2024.
"Ukraine's cooperation with the World Bank in conditions of considerable uncertainty and constant challenges is a precious investment in stabilizing the country's economy. Initiating and implementing joint programs helps us meet urgent needs. The new RISE project will help the government make the business support process more effective, particularly by creating a favorable business environment in Ukraine," Serhii Marchenko noted.
In addition, the Project includes an investment component (IPF), which provides technical assistance for institutional and organizational strengthening, capacity building, and consulting support for institutions responsible for implementing Project indicators.
The Ministry of Economy is the responsible executor of IPF RISE. Within the framework of the IPF, the Ministry of Economy and the World Bank signed a grant agreement for 10 million US dollars under the multi-donor trust fund for support, recovery, reconstruction, and reform (URTF).
The World Bank's Board of Directors approved the RISE system project in Ukraine on October 31, 2024.
