World Bank Launches $750M SURGE Program to Strengthen Ukraine’s Fiscal Governance and Aid Reconstruction Efforts

The initiative will focus on improving Ukraine’s public investment management systems at the central level while enhancing fiscal governance and local-level public financial management.

The World Bank has introduced a substantial $750 million support package for Ukraine, known as Supporting Reconstruction through Smart Fiscal Governance (SURGE), aimed at bolstering Ukraine’s public financial management and supporting its ongoing recovery and reconstruction efforts. The initiative will focus on improving Ukraine’s public investment management systems at the central level while enhancing fiscal governance and local-level public financial management.

Developed under the World Bank’s Program for Results financing instrument, SURGE is designed to provide financial support as Ukraine advances key reforms in revenue administration, strengthens its local government finance systems, and aligns public investments with local service delivery needs. The Ukrainian Ministry of Finance will oversee the implementation of this program.

To further assist Ukraine’s efforts, the World Bank also approved a $10 million grant project, Strengthening Government Capacity for Fiscal Reform Implementation (STRONG), to help bridge gaps in administrative expertise and provide Ukrainian authorities with essential technical assistance. This funding will ensure that the SURGE program is executed efficiently, enabling Ukrainian institutions to make meaningful fiscal improvements in alignment with European Union standards and reconstruction goals.

“It is remarkable to see Ukraine’s resilience as state institutions continue to function at full capacity during the third year of war,” said Bob Saum, World Bank Country Director for Eastern Europe. “The SURGE and STRONG programs will not only support Ukraine’s immediate needs but also build the foundations for long-term fiscal stability, EU accession, and effective public project management.”

SURGE’s $750 million funding includes $450 million from the Japan-supported ADVANCE Ukraine Trust Fund and a $300 million credit from the International Development Association (IDA) Special Program for Ukraine and Moldova Recovery. As a results-based financing program, SURGE can expand further as new funds become available.

This initiative is a part of a larger package of international support aimed at sustaining Ukraine’s reconstruction efforts through 2024. In addition to SURGE, the World Bank and its partners have implemented emergency programs across a range of sectors, including health, education, transportation, energy, and agriculture. These flexible programs can be scaled up to meet additional funding needs and ensure rapid fund disbursement to critical areas of reconstruction.

Since Russia’s invasion of Ukraine, the World Bank Group has mobilized more than $50 billion to support the country’s resilience and reform efforts. This support is sourced from a global coalition of partners, including major commitments from the United States, Japan, the United Kingdom, and European nations, along with contributions from countries across Asia, Oceania, and the Americas.

By focusing on fiscal governance and reconstruction, the SURGE program aims to enhance Ukraine’s long-term resilience, reinforce essential service delivery, and enable effective management of public funds—a crucial step as Ukraine continues its recovery journey and prepares for eventual European Union membership.