Ukraine to receive over USD 246M from Japan under SURGE program
Ukrinform reports this, citing the Government Portal.
The funds will be sourced from the Advancing Needed Credit Enhancement for Ukraine Trust Fund (ADVANCE Ukraine), backed by the Japanese government.
The project aims to support the Ukrainian government’s efforts to establish an effective public investment management system during post-war recovery, improve fiscal governance at the local level, enhance medium-term and program-based local budgeting, and strengthen revenue administration.
It is planned that by the end of 2025, $229.7 million will be allocated to the state budget’s general fund. Part of the loan, $16.8 million, will be used to capitalize interest in order to reduce Ukraine’s debt servicing costs in the coming years.
The agreement was signed by Ukraine’s Minister of Finance Serhii Marchenko and Bob Saum, the World Bank Regional Country Director for Eastern Europe.
The SURGE project has been implemented in Ukraine since 2024. During this period, the World Bank has signed financing agreements totaling $760 million, including $10 million in grant funds.
The project uses the Program-for-Results (PforR) financial instrument, which links funding to the achievement of specific performance indicators.
“Cooperation under the SURGE project allows us not only to manage state investments and resources more effectively, but also to strengthen the financial resilience of communities, ensure transparency in spending, and build taxpayers’ trust. I am grateful to the World Bank for supporting Ukraine and for the trust that is key to our joint success in reconstruction,” Marchenko said after signing the agreement.
As previously reported, Ukraine’s Ministry of Finance expects to receive $300 million under the SURGE program this year.
Illustrative photo: facebook.com/olenazelenska.official
