Mariupol , Ukraine, October 29, 2019 —IFC, a member of the World Bank Group, and the Ukrainian government signed a trio of agreements today designed to spur investments in the country and bolster local infrastructure. The partnerships are part of a larger effort by IFC to generate jobs and support economic development in Ukraine.
Ukraine ranks 66th among 160 countries in the World Bank’s latest Logistics Performance Index 2018 ranking. Over two-thirds of the country’s infrastructure is outdated due to a lack of modernization since the Soviet era and that has acted like a brake on economic activity. These infrastructure challenges cannot be addressed by the government alone. Public-private partnerships (PPPs) can help address those gaps. The first agreement will see IFC advise the government as it launches an ambitious public-private partnership program. The initiative will allow the government to partner with private companies to deliver major infrastructure projects in five key sectors: airports, rail, roads, energy, and healthcare.
Ukraine is among the world’s most energy-intensive economies. The country aims to transition to low-carbon economy and integrate its power system with Europe. Energy storage systems can support those efforts. Under the terms of the second agreement signed today, IFC will help review regulations and explore ways to spur private sector investments in energy storage projects.
Oleksiy Honcharuk, Prime Minister of Ukraine, said: “The government is committed to accelerating and expanding bold reforms to make Ukraine a more attractive destination for investments. Our cooperation with IFC aims to increase the role of the private sector in the country’s economy, with the ultimate goal of improving living standards for Ukrainians.”
Finally, the third agreement will see IFC, in partnership with the State Secretariat for Economic Affairs of Switzerland SECO and the Federal Ministry of Finance of Austria, support the city of Zaporizhzhia as it develops a "Smart City" program. The project is designed to ease congestion, make the city's roads safer, and facilitate efficient energy use by city’s infrastructure. With 70 percent of Ukraine’s population living in cities, several cities are grappling with aging infrastructure. IFC’s work aims to help address that by advising municipal officials as they procure electric transport, install new traffic lights with smart controls, and set up a traffic management system and LED lighting. Zaporizhzhia is the fourth city IFC is working with in Ukraine—the others are Kyiv, Mariupol, and Lviv—under its Cities Initiative.
"Ukraine has tremendous potential," said Georgina Baker, IFC Vice President for Europe, Central Asia, Latin America, and the Caribbean. "But to boost economic growth and reduce poverty, the country needs a dynamic, competitive, and robust private sector—one that's capable of making large-scale investments in infrastructure. We are committed to helping Ukraine realize the private sector’s potential, with focus on infrastructure, energy, and climate-smart investments.”
In Ukraine, since 2004, IFC has committed over $3.3 billion in long-term financing across a diversified portfolio of projects (of which $1.1 billion was mobilized from partners) and implemented a wide-ranging advisory program. In addition, we have supported more than $1.2 billion of trade through IFC’s Global Trade Finance program.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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