The World Bank Board of Directors overnight on Saturday approved a new support package of the Delivering Resilient Infrastructure in Vulnerable Environments (DRIVE) project to Ukraine worth $432 million aimed at assisting the Government of Ukraine in enhancing the resilience of the national road network and improving the operational efficiency within the transport sector.

The World Bank told Interfax-Ukraine that the DRIVE project complements the ongoing Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) project, which supplied modular road bridges and delivered 200 flatbed wagons to the Ukrzaliznytsia (Ukrainian Railways) to increase its cargo and export capacity.

The World Bank said that since the start of the war in February 2022, Ukraine's transport infrastructure has become significantly damaged, disrupting key import and export routes. According to the Rapid Damage and Needs Assessment (RDNA4) released recently, the road infrastructure has suffered the most, with 58 percent of transport sector; 30% on state roads and bridges, 11% on local roads and bridges, and 17% on communal roads bearing major destruction.

The financing for the DRIVE project includes $212 million from the International Bank for Reconstruction and Development (IBRD), backed by credit enhancement from the Japan-supported ADVANCE Ukraine Trust Fund, $210 million from the Special Program for Ukraine and Moldova Recovery (SPUR), and $10 million from the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).

The project will be implemented by the State Agency for the Restoration and Development of Infrastructure of Ukraine.

The official project page on the bank's website outlines three key components of the DRIVE initiative, with the first focusing on maintaining the national road network. This component includes two major subcategories.

The first subcategory – an investment of $270.48 million into national roads – will fund the design, implementation, and oversight of construction projects aimed at ensuring certain segments of the national road network remain in proper operational condition. This includes routine maintenance, major road repairs, and bridge overhauls.

The second subcategory – road sector and transportation reform – allocates $90 million to enhance the efficiency of the transport sector through a results-oriented approach.

The second major component of the initiative, with a budget of $39 million, focuses on the periodic maintenance of state road infrastructure. It also comprises two subcategories: the installation of emergency modular road bridges and climate-smart preservation of key road network links.

The third component centers on technical assistance and project management, also divided into two parts: technical assistance and project development (funded by a $9 million URTF grant), which complements investment-focused subcomponents, and project management (a $1 million URTF grant) covering eligible expenses for project implementation support, training, and knowledge exchange.

According to the bank, DRIVE is closely aligned with recent and ongoing analytical work and technical assistance provided by the World Bank and the International Finance Corporation (IFC). This includes the RDNA4 analysis and upcoming policy papers on road sector financing and the development of road concessions in Ukraine.