First $50m grant supports immediate humanitarian relief and recovery and increased capacity of import and export corridors.
The World Bank is set to issue new grant financing for Ukraine’s transport network through its Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF).
This new funding is the second scalable World Bank-supported emergency operation approved within two months, mobilising partner resources through an innovative framework approach. The first one was approved in December and focused on repairing health infrastructure and health services.
The Repairing Essential Logistics Infrastructure and Network Connectivity (RELINC) Project will help to restore essential bridges and railways to relink communities and improve westward transport linkages to mitigate impacts of Black Sea shipping disruptions.
To ensure rapid and effective repair, the project will support the purchase of modular bridges, equipment and materials to urgently repair damaged road-to-bridge connections and vital rail lines. It will also help to finance the purchase of flatbed wagons and additional rolling stock to expand the railway’s capacity to move cargo in containers.
World Bank vice president for Europe and Central Asia, Anna Bjerde, commented: “Russia’s invasion of Ukraine continues to have devastating economic and humanitarian consequences. Ukraine needs urgent investments to repair damaged essential transport routes. This project will support delivery of aid and essential services to communities directly affected by the war and will boost the economy in Ukraine and beyond by facilitating transport and trade. We are grateful to our donors and partners for their continued support, generosity, and collaboration.”
According to World Bank estimates, upwards of 2,100 villages, 51 towns and 35 cities in areas that have returned to Government of Ukraine control are experiencing disrupted transport networks due to war. Direct damage to Ukraine’s transport network is extensive, totalling more than $29.9bn and economic losses from disrupted transport total an additional $26.1bn as of 1 June 2022.