11:32 12.06.2024

USA, UK and European Commission to help Ukraine develop new framework for preparing public investment projects

4 min read

The Government of Ukraine, the United States, the UK and the European Commission, in collaboration with members of the Multilateral Donor Coordination Platform, plan to develop a new project preparation framework to support public investment management in Ukraine, according to a joint communique from the platform's debut ministerial meeting on June 11 in Berlin.

"The Project Preparation Framework to boost Ukraine's project preparation capacity, in cooperation with the World Bank Group, the European Investment Bank and the European Bank for Reconstruction and Development," according to the document published on the Finance Ministry website.

The Steering Committee of the Multi-agency Donor Coordination Platform will take the matter further at its next meeting, including presenting plans to develop project preparation facilities.

"This will contribute to the recovery, reconstruction and modernization effort, in line with Ukraine's commitment to its EU accession process," the document notes.

In Berlin, platform members met the members of the newly launched Business Advisory Council and committed to receive their advice on how Ukraine and donors can strengthen Ukraine's investment climate, attract private sector investment, and bolster Ukrainian enterprises.

They support Ukraine's launch of its public investment management reform and Strategic Investment Council aimed at improving project planning, prioritization, and preparation of a single pipeline of projects to maximize donor and private sector investments to Ukraine from 2025 onwards.

"In this context, we commit to continuing our efforts to address the short-, medium- and long-term transportation needs of Ukraine, including with over $800 million in announced funding for 2024 by the Platform. We all commit to principles of aid effectiveness, sustained responsible stewardship, donor coordination, transparency, and accountability in reconstruction projects, including through enhancing digital platforms," the document notes.

The event, held on the sidelines of the Ukraine Recovery Conference (URC-2024) in Berlin, brought together representatives of governments from 23 countries and seven international financial organizations. Ukraine was represented by Prime Minister Denys Shmyhal (online), co-chairman of the platform from Ukraine, Minister of Finance Serhiy Marchenko, and the meeting was moderated by Executive Vice President of the European Commission Valdis Dombrovskis.

According to the communiqué, to date, the total economic support of platform participants to Ukraine exceeds $142.8 billion, including Ukraine received more than $74 billion in the form of budget support with a total volume of attracted budget assistance of $85 billion.

Platform members confirmed their readiness to cooperate to finance Ukraine's needs for 2024 and 2025. In particular, Ukraine is expected to receive an additional $10.9 billion from the EU this year, subject to the implementation of commitments set out in the Ukraine Plan and $7.8 billion in U.S. budget support.

"Japan has committed an additional $2.0 billion, and the UK an additional $484 million," the document notes.

Platform participants welcomed the EU's decision to channel revenues from immobilized Russian sovereign assets to Ukraine and the progress of G7 countries in discussing potential ways to channel revenues from immobilized Russian sovereign assets to Ukraine.

"G7 countries are making progress in their discussions... with a view to presenting options to G7 Leaders ahead of the Apulia Summit. The G7, the Netherlands and Sweden reaffirm that, consistent with our respective legal systems, Russia's sovereign assets in our jurisdictions will remain immobilized until Russia pays for the damage it has caused to Ukraine," the document notes.

It is emphasized that platform participants commit to continue to support Ukraine, providing significant assistance to repair and stabilize the energy grid and resume electricity production, primarily in preparation for the next winter. As part of the G7+ Energy Coordination Group, its members have pledged more than $1 billion in additional funding and other assistance to cover the most pressing needs of the energy sector after Russia stepped up its attacks on Ukraine's critical infrastructure.

Platform participants also welcomed the publication of the Reform Matrix by the Ukrainian government.

The permanent members of the multilateral donor coordination platform are Italy, Canada, the European Commission, France, Germany, Japan, Ukraine, the UK and the United States. Provisional members are Korea, the Netherlands, Norway and Sweden.