World Bank lends Ukraine $196.3 mln under Japan-guaranteed SURGE project to strengthen fiscal governance

Ukraine has received $196.3 million in concessional financing from the World Bank under guarantees from the Government of Japan through the ADVANCE Ukraine fund as part of the SURGE project – "Supporting Reconstruction through Smart Fiscal Governance," the Ministry of Finance reported on Friday, December 26.

"Over more than a year of implementing the SURGE project, more than $876 million has already been transferred to the state budget, representing a tangible contribution to the stability of public finances. Such support from donors and the World Bank makes it possible to implement systemic reforms and ensure effective public investment management, which is the foundation for the country's recovery and sustainable development," Finance Minister Serhiy Marchenko was quoted as saying.

The SURGE project has been implemented in Ukraine since late 2024. To date, the World Bank has signed agreements with Ukraine totaling more than $1 billion under the program, including $10 million in grant funding aimed at the effective implementation of institutional reforms.

The project is being implemented using the Program-for-Results (PforR) financing instrument, under which funding is directly linked to the achievement of specific reform results. Each tranche confirms the fulfillment of specific performance indicators.

As noted by the Ministry of Finance, to receive the latest financing tranche, Ukraine fulfilled a number of key conditions. In particular, more than 300 communities received additional grants following the introduction of updated resource allocation criteria and procedures; at least 400 communities integrated gender-related data into their medium-term budget plans; and no fewer than 50 staff members of central executive authorities were trained in public investment management under new procedures, including the integration of climate considerations into decision-making processes.

In addition, the State Tax Service developed regulatory acts approving methodological documents under a pilot project on tax risk management, the ministry added.

The SURGE project covers improvements in local-level fiscal governance, development of medium-term and program-based budgeting in communities, enhancement of revenue administration efficiency, and the integration of gender and climate approaches into national fiscal policy.