Ukraine | World Bank

Ukraine - Urban Infrastructure Project : procurement plan

Ukraine - Additional Financing for the Hydropower Rehabilitation Project

The main objective of the Additional Financing for the Hydropower Rehabilitation Project is to improve operational stability and reliability of power supply by increasing regulating capacity, efficiency and safety of hydroelectric plants, and therefore, facilitate unimpeded operation and opening up of the electricity market in Ukraine. The additional loan will help finance the costs associated with a financing gap for rehabilitation of the Kremenchuk hydropower plant and the Dniprovska two hydropower plants which are included in component A of the Hydropower Rehabilitation Project. The design, components, development objectives, implementation schedule, and expected outcomes of the Hydropower Rehabilitation Project will remain the same.

Ukraine - Energy Efficiency Project

Ukraine - Second Export Development Project

Status of projects in execution (SOPE) - FY09 : Europe and Central Asia region - Ukraine

The Status of Projects in Execution (SOPE) report for FY09 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2009. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY09 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Investment climate in Ukraine as seen by private businesses

This survey focuses on the key regulatory obstacles, including permits, inspections, and technical regulations, in addition to a special focus on the food processing sector and agricultural enterprises, which was chosen for the following reasons: 1) agriculture and food processing together made up 20 percent of gross domestic product (GDP) and employed 10 percent of the country's workforce in 2007; 2) the sector's export potential is currently underdeveloped. This is due primarily to the limited competitiveness of Ukrainian goods, failure to comply with international food quality and safety standards, and existing legal and practical barriers to trade; and 3) in recognition of the agribusiness sector's untapped growth potential, and of the crucial need to relieve Ukrainian business of unnecessary administrative burdens in preparation for economic recovery after the current financial crisis, the government of Ukraine has undertaken significant initial steps to reform the sector regulatory framework. It has found support in this work from the World Bank, the International Finance Corporation (IFC), and the rest of the international community. The 2009 IFC survey studied sole proprietors for the first time. The results are presented separately from the results for enterprises (legal entities). This was done to facilitate examination of the unique issues that sole proprietors encountered and to identify key regulatory burdens among this group. Finally, the 2009 IFC survey also asked, for the first time, about the gender of business owners and managers, with the objective of identifying gender-based differences in regulatory procedures and business structures and sectors.

Ukraine - Urban Infrastructure Project : procurement plan

Ukraine - Energy Efficiency Project

Ukraine - First Programmatic Financial Rehabilitation Development Policy Loan Program

The objectives of the First Programmatic Financial Rehabilitation Development Policy Loan Program are to: (i) support a sound banking sector recapitalization program and restructuring process; (ii) enhance the legal framework for bank resolution; and (iii) strengthen the deposit insurance payout functions. Ukraine is a lower middle income country. It lags its eastern European neighbors in structural reforms, but has made important progress in some key areas, such as World Trade Organization (WTO) membership. Ukraine is an open economy and strongly supports closer integration with the European Union, and a new association agreement is under negotiation to be signed in the near future, including a deep and comprehensive Free Trade Agreement (FTA), which will anchor important institutional and structural reforms. At the same time, the country continues to suffer from corruption, despite a significant improvement in the environment for voice and participation since the political events of late 2004, often referred to as the 'orange revolution'.

Ukraine economic update (July 16, 2009)

This Ukraine economic update includes the following headings: as the global economic outlook has worsened, Ukraine as an open emerging economy has been badly affected; the authors have lowered growth forecast further for 2009 and predict a slow recovery in 2010, which is however dependent on Ukraine maintaining prudent macroeconomic policies and moving ahead with key structural reforms; and Ukraine's key vulnerability now lies in its fiscal imbalance, brought about by steep revenue falls against unrevised expenditure commitments and the large financing needs of Naftogaz.

Ukraine - Programmatic Financial Rehabilitation Loan Project

Ukraine economic update (April 7, 2009)

This Ukraine economic update includes the following headings: the global economic environment has deteriorated further, dragging Ukraine into a sharper downturn; the economy is undergoing a painful though needed rebalancing; and a comprehensive, inter-linked, and consistent 'anti-crisis' program of measures and reforms is urgently needed to face the economic downturn and lay the foundations for the economic recovery. Efforts in this direction would do much to stabilize market expectations.

Ukraine - Hydropower Rehabilitation Project : additional financing

Ukraine - Programmatic Financial Rehabilitation Loan Project

Ukraine - Roads and Safety Improvement Project

The objective of the Roads and Safety Improvement Project in Ukraine is to improve the condition and quality of sections along the M-03 road, and increase traffic safety on roads. There are three components to the project. The first component of the project is road rehabilitation of about 120 kilometer section of the Kyiv-Kharkiv-Dovzhansky road (M-03). This component comprises civil works for the rehabilitation/strengthening of the existing 2x2 lanes of the M-03 road, including safety measures for the vehicles and for local inhabitants. The M-03 road is strategic for Ukraine's integration with the European Union (EU) road network and as a potential domestic and international transit corridor. The second component of the project is road safety improvement. The project will carry out a program of safety measures for vehicles and local inhabitants at traffic accident black spots on public roads. The component will fund the supply and installation of road safety improvements such as vertical and horizontal signaling, reflectors, rumble strips, and modern crash barriers on the most critical points on public roads. The third and the final component of the project is capacity building. Provision of advisory services, training and equipment to enhance road management according to international practice, including: (a) improvement of Ukrainian norms, rules and standards in the design, construction, repair and maintenance of roads; (b) modernization of road management and operations, including implementing performance based contracts and introducing systems for planning and programming road works, and (c) introduction of international 'best practice' contracting in the road sector.

Ukraine - Public Finance Modernization Project : procurement plan

Reforming food safety regulation in Ukraine : proposals for policymakers - a background policy paper

This report provides an overview of the main legal, regulatory, and institutional bottlenecks adversely affecting the food safety system in Ukraine, as a way to raise awareness among policymakers and all relevant stakeholders about the need to harmonize the current system with international best practices. The structure of the report is the following: section two analyzes the performance, key sectoral issues, and economic potential of agribusiness in Ukraine; section three provides a legal review of the legislative and regulatory framework in Ukraine, while also assessing the institutional structure of the food safety control system; section four focuses on three critical areas in need of reform, namely: outdated product standards, mandatory certification of food products, and inspections; and section five finally provides a detailed set of recommendations and proposed actions for reform.

What drives firm productivity growth ?

This paper presents new evidence on the causal links between changes in the business environment and firm productivity growth. It contributes to the literature in three important aspects. First, it constructs a unique database merging information from two large firm-level databases. The samples of both databases are merged on four criteria-country, sub-national location, firm size, and year-producing a panel of 22,004 firms in eight economies of Eastern Europe and the former Soviet Union: Bulgaria, Croatia, Czech Republic, Estonia,, Poland, Romania, Serbia, and Ukraine. Second, the paper addresses shortcomings of earlier studies, namely reverse causation, multicollinearity, and unreliable productivity estimates. Firm productivity growth is estimated drawing on corporate financial data from manufacturing firms included in the AMADEUS database. Changes in the business environment are estimated from the World Bank Enterprise Surveys conducted in 2002 and 2005. Multicollinearity problems in the full model regression are mitigated by constructing a set of six aggregate indicators of the business environment (using principal component analysis). The paper finds that, over the period 2001 to 2004, an increase of one standard deviation in infrastructure quality, financial development, governance, labor market flexibility, labor quality, and market competition raises the total factor productivity of the average firm by 9.8, 7.8, 3.2, 3.4, 5.8, and 3 percent, respectively. Lastly, the paper decomposes firm productivity growth and ranks the relative impact of changes in these six aspects of the business environment by country, by firm size, and by industry.

Doing business 2010 : Ukraine - comparing regulation in 183 economies

Doing Business 2010 is the seventh in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. This paper presents the summary Doing Business indicators for the Ukraine. The paper includes the following headings: introduction and aggregate rankings, starting a business, dealing with construction permits, employing workers, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, closing a business, and Doing Business 2010 reform.

World Bank Continues Energy Sector Support in Ukraine

2009-11-19T21:57:43.000Z

Contacts:

Andrii Gulay, (380 44) 490 66 71/2/3

agulay@worldbank.org

Michael Jones, (202) 473-2588

mjones2@worldbank.org

WASHINGTON, November 19, 2009 - The World Bank’s Board of Executive Directors today approved a loan in the amount of US$ 60 million for Additional Financing to the Hydropower Rehabilitation Project in Ukraine. The original loan for the Hydropower Rehabilitation Project in the amount of US$106 million was approved on June 21, 2005, and became effective on February 3, 2006.

The main objectives of the Hydropower Rehabilitation Project are to improve the reliability, efficiency, and safety of the operation of UkrHydroEnergo hydraulic structures and equipment, and to improve their environmental performance. The latter will be achieved through the reduction in emissions of greenhouse gases, the installation of nonpolluting turbine runners, and the elimination of oil leaks into Dnipro and Dnister Rivers.

“The reform and modernization of the energy sector is a key pillar of Ukraine’s sustainable economic development,” said Martin Raiser, World Bank Country Director for Ukraine, Belarus and Moldova. “We are very pleased to be able to continue to support UkrHydroEnergo in its efforts to increase the efficiency of the unique Dnipro cascade and thereby ensure Ukraine has access to cheap, reliable, and clean power.”

The project will help increase the installed capacity of the Dnipro Hydropower Cascade by about 400 MW and its production by about 500 GWh, which is equivalent to building a major new hydropower plant. The project also pioneered the concept of Carbon Financing in Ukraine as it was the first Joint Implementation Project under the Kyoto Protocol in the country. The additional financing supports the rehabilitation of three hydroelectric units in the Dniprovska 2 Hydropower Plant (HPP) and three hydroelectric units in the Kremenchug HPP.

The Bank has supported Ukraine in its efforts to reform and restructure its energy sector through policy dialogue, technical assistance, and financing of adjustment and investment projects since the early 1990s. The 2008-2011 Country Partnership Strategy (CPS) discussed by the Board on December 6, 2007, emphasizes the need for sustainable economic growth and improved competitiveness. The Additional Financing will contribute to the CPS objectives by increasing reliability and reducing the cost of hydropower generation, as well as helping Ukraine better prepare to meet technical requirements of the EU power grid.

For more information about the World Bank in Ukraine, please visit http://www.worldbank.org.ua/

Ukraine: Hydropower Rehabilitation Project

2009-11-19T21:54:36.000Z

WASHINGTON, November 19, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: US$60 million equivalent

Terms: Maturity = 12 years; Grace Period = 6 years

Project ID: P115515

Project Description: Additional financing for the Hydropower Rehabilitation Project (in support of the Energy Reform and Development Program) aims to improve operational stability and reliability of the power supply by increasing regulating capacity, efficiency, and safety of hydroelectric plants, and as a result, facilitating unimpeded operation and opening up of the electricity market in Ukraine. The additional loan will help finance the costs associated with a financing gap for rehabilitation of the Kremenchuk hydropower plant and two Dniprovska hydropower plants.

Media Contact

Michael Jones

(202) 473-2588

mjones2@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P115515

Roma education to get crucial boost in funding

2009-11-12T20:18:19.000Z

Roma education to get crucial boost in funding

BRUSSELS, November 12, 2009―At an international donor conference hosted by the Open Society Institute, the World Bank and the European Economic and Social Coimmittee, donors swung their financial support behind education for the Roma, Europe ’s largest minority population. The €25.5 million in funding commitments announced by donors today is targeted for the Roma Education Fund (REF) and will provide the essential ingredients needed for children to succeed in school: scholarships, school meals, teacher training and academic support. The added financial support will also help governments develop stronger national policies for Roma inclusion.

“Roma want to contribute to society. They want to improve the lives of their children and give them a better life than they had. The most important factor that keeps so many Roma trapped in poverty is a lack of education; with increased political will and improved cooperation we can tackle this problem head-on,” said George Soros, chairman of the Open Society Institute and one of the founders of the Roma Education Fund.

The REF is a grant-making and policy analysis foundation established in 2005 that designs and supports programmes and projects to improve Roma education outcomes in Europe . With help from the Fund, last year alone over 30,000 students, from pre-school to university, showed improved test scores while more than 800 Roma students attended and graduated from university.
Roma continue to face discrimination and exclusion from opportunities available to most citizens. They often lack access to good quality education or other social services, holding low quality and low-paying jobs.

“The primary school completion rate among young Roma is similar to that prevailing in some countries in Sub-Saharan Africa. This strikes me as something that does not belong in the Europe of the 21 st century”, said the World Bank Managing Director Ngozi Okonjo-Iweala.

The amount committed today will enable the REF to continue closing the gap in educational outcomes between Roma and non-Roma children by supporting quality education for Roma, desegregation of education systems, and improvement of Roma’s social inclusion. “The REF has identified what works in Roma education. The time has come to move to large scale interventions,” said Costel Bercus, chair of the REF governing board.

www.romaeducationfund.hu
www.refdonorconference.org

Contacts:
Luis Montero
luis.montero@osf-eu.org
Alexander Rowland
arowland@worldbank.org

Transition since Fall of Berlin Wall Shapes Today’s Crisis and Recovery

2009-11-03T17:05:11.000Z

Report on eve of 20th anniversary of the Berlin Wall's fall says structural reforms are now necessary to protect hard-won gains

WASHINGTON, November 3, 2009―The economic policy choices made by some countries of Europe and Central Asia (ECA)* during the transition from centrally planned to market economies contained the seeds of vulnerability when facing the global economic crisis, and are also likely to shape the recovery, says a new World Bank report issued on the eve of the 20th anniversary of the fall of the Berlin Wall.

The report, Turmoil at Twenty: Recession, Recovery, and Reform in Central and Eastern Europe and the former Soviet Union, says many countries in ECA are well integrated today into global markets. While this integration brought many benefits and drove the region’s spectacular growth in the decade since the Russia financial crisis of 1998, it also exposed ECA countries to three channels through which the crisis has hit the region hard: financial, market, and labor.

Excessively rapid catch-up towards Western European living standards by countries that had suffered deep or double transition recessions in the late 1990s, enabled by bank lending at a time of unusually high global liquidity, led to rapid growth, but also created serious macroeconomic imbalances when facing the 2008-09 global crisis. Short-term maturing debt reached extremely high values. But not all financially integrated countries in the region were equally vulnerable. Their experience suggests that tighter fiscal policies, without necessarily insulating countries from the crisis, could have played a stabilizing role, even though the imbalances did not generally originate in the public sector.

The report says that international collective action comprising generous official financing and coordination by Western European parent banks to maintain their exposures in Central and Eastern Europe has allowed maturing external debt to be rolled over, at least so far. Those parent banks were crucial in hardening budget constraints and attaining macroeconomic stability during the first decade of transition.

“The outlook for economic growth in emerging Europe and Central Asia is considerably weaker than that in the years before the crisis,” said Pradeep Mitra, one of the authors of the report and former World Bank Chief Economist of the Europe and Central Asia Region. “If parent banks reduce exposures in countries of the region due to recognition of losses in their home market, continuing collective action will be necessary to make this process gradual and less disruptive.”

According to the report, the weak outlook for growth highlights the urgency of proceeding with bank, corporate, and household debt restructuring. Government should set up enabling frameworks for debt restructuring, but resist using public resources since household debt is typically not concentrated among the poorer households.

The poorer countries of the former Soviet Union that are financially less integrated are experiencing the crisis primarily as a result of a downturn in exports and decline in workers’ remittances due to the recession in the Russian Federation. Thus, in Tajikistan, the poorest country of the region, it is estimated that a 30 percent decline in remittances would reduce the consumption of the bottom fifth of households by around 20 percent. While some countries have safety net programs that deliver a substantial proportion of benefits to poorer households, more resources are necessary to scale up these programs where they exist, and introduce targeted programs where they do not. Official financing for a number of years will be necessary to support desirable social spending until a durable recovery is in place.

The report recommends that with capital flows likely to be considerably lower than pre-crisis levels, and financial markets already differentiating across countries, policy makers need to address the most binding constraints to growth in order to improve their business environment and remain competitive.

“It is remarkable that business surveys show infrastructure and labor skills – formerly the main assets of transition countries – not only to be the tightest bottlenecks to the operation and growth of firms, but also more constraining than in non-transition economies at similar income levels. These sectors require urgent reforms,” said Mitra. “However, the surveys also show significant progress after two decades of transition in building institutions of the market economy. For example, tax administration and customs regulation which have traditionally ranked high among constraints to the operation and growth of firms are now seen as less constraining and indeed in line with non-transition economies at similar income levels.”

* The ECA countries include Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, FYR Macedonia, Georgia, Hungary, Kazakhstan, Kosovo, the Kyrgyz Republic, Latvia, Lithuania, Moldova, Montenegro, Poland, Romania, the Russian Federation, Serbia, the Slovak Republic, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine, and Uzbekistan.

Contacts:
In Washington:
Elena Karaban 202-473-9277
Ekaraban@worldbank.org
Michael Jones 202-473-2588
Mjones2@worldbank.org

The project Access to Financial Services Project has changed to Closed

2009-10-30T04:00:00.000Z

The project Access to Financial Services Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Access to Financial Services Project for Ukraine aims to increase access to financial services in rural areas, specifically for rural and small and medium-size enterprises. The project consists of the following components: Component A: includes two sub-components: 1) A line of credit (about US$125 million) to provide long-term sub-loans (for investments, working capital or financial leases) through three participating banks Component B: will finance institutional development (consulting services and information technology/management information systems) as well as training of the Ministry of Finance and selected beneficiary institutions to address the legislative and institutional constraints which are impeding the expansion of financial intermediation, through the strengthening of the regulatory capacity and financial market legislation. Component C: The first adaptable program loan will finance the staffing for the project management unit as well as incremental expenditures incurred by the Ministry of Finance for project implementation, monitoring and evaluation.

Climate Threats to Europe and Central Asia Region Real and Growing, Says World Development Report

2009-10-26T13:15:00.000Z

KYIV, October 26, 2009 — The latest World Development Report (WDR)* finds that vulnerability to climate change in Eastern Europe and Central Asia (ECA) is compounded by weak environmental management over many decades and the poor state of much of the region’s infrastructure. Many ECA countries are also among the world’s least energy efficient, which further impairs the Region’s capacity to withstand climate change risks.

World Development Report 2010: Development and Climate Change, released in advance of the December meetings on climate change in Copenhagen, stresses that resilient, low-carbon growth is possible for developing and emerging economies, although poorer countries will require financial and technical assistance from high-income countries to support climate fixes.

"To solve the climate problem, we urgently need to transform energy systems towards higher energy efficiency and more low-carbon technologies," says Marianne Fay, Director of the WDR and Chief Economist of the World Bank’s Sustainable Development Network. This is particularly true in ECA economies, where increasing energy efficiency and bringing currently very high carbon intensity closer to international norms is desirable for many other reasons—competitiveness, energy security, and public health.

Ms Fay, who is in the region to present the WDR’s main findings for ECA, stressed that policymakers should act now, act together, and act differently to tackle climate change.

Countries need to act now because today’s decisions about energy, infrastructure, and environment will shape policy options and therefore will determine the climate of tomorrow. Countries need to act together because no one country stays immune to challenges posed by climate change, and global cooperation is vital for improving energy efficiency, designing and introducing low carbon technologies, and developing alternative energy sources. Countries need to act differently, because business as usual would put the world onto a potentially catastrophic path with unacceptable costs to development.

The world’s developing countries and emerging economies—including those in ECA—will bear most of the costs of the damage from climate change. For example, rising temperatures and reduced precipitation in Central Asia will exacerbate the environmental catastrophe of the disappearing Southern Aral Sea (caused by the diversion of water to grow cotton in a desert climate), while sand and salt from the dried-up seabed are blowing onto Central Asia’s glaciers, accelerating the melting caused by higher temperatures. Poorly designed and constructed, badly maintained, and aging infrastructure and housing are ill suited to withstand today’s storms, heat waves, and floods, let alone protect populations from the impacts of increasingly frequent and intense extreme events.

Average temperatures across ECA have already increased by 0.5°C in the south to 1.6°C in the north, and overall temperature increases of 1.6 to 2.6°C are expected by the middle of the century. This is affecting hydrology, with a rapid melting of the region's glaciers and a significant decrease in winter snows. Many countries are already suffering from winter floods and summer droughts—with both Southeastern Europe and Central Asia at risk for severe water shortages. Summer heat waves might claim more lives than would be saved by warmer winters.

“Much has been made of the fact that warmer climate and abundant precipitation in parts of Europe and Central Asia—particularly Kazakhstan, Russia, and Ukraine—will open up a new agricultural frontier. However, any local potential benefit pales in comparison to the existing costs of the region’s relative inefficiency and low productivity,” says Ms Fay. “While world grain yields have been growing on average by about 1.5 percent per year, they have been falling or stagnant in these three countries.”

Regardless of climate change, ECA will gain a lot by improving its water resource management, addressing its serious environmental legacies, upgrading neglected infrastructure and housing, and strengthening disaster management. But the region should also develop strategies to reduce vulnerability to future changes—focusing on infrastructure but also on capacity building and stronger institutions to support adaptation and help people take advantage of changing opportunities, for example, in agriculture and energy. Much of the adaptation needed to make ECA more resilient to climate change will have substantial co-benefits for other development priorities.

Reducing greenhouse gas emissions is equally important for ECA countries, particularly the EU members bound by EU community-wide policy goals. Even those without obligations can benefit, through reduced costs and greater energy security, from reducing fossil-fuel dependence and increasing efficiency—and from seizing opportunities to produce renewable energy.

Experiences from the World Bank, International Finance Corporation, and Global Environmental Facility show promising results for energy efficiency programs in the region, including Bulgaria, Hungary, and Serbia. Lessons indicate the importance of a guarantee mechanism to increase investor confidence in projects, and of technical assistance to raise awareness of energy efficiency and to provide training and advisory services to local banks and project developers.

The World Bank stands ready to provide assistance and finance to support ECA countries’ efforts to adapt to climate change and reduce their own emissions, both through innovative financing mechanisms as well as through direct lending. For example, in May 2009, Turkey became the first country to access low-interest financing from a Clean Technology Fund that will be used in part to expand the country’s wind power capacity over the next fifteen years.

Ukraine possesses considerable potential to address climate change problems by supporting energy efficiency and renewable energy technologies. The World Bank, along with partner IFIs plan to support this effort with low cost financing from the newly created Clean Technology Fund. In particular, the Bank is supporting the preparation of an energy efficiency program designed to scale-up Ukraine’s energy efficiency program ten-fold. The benefits of this program go beyond global warming as these investments will also decrease local pollution, improve energy security and decrease the cost of imported fossil fuels. This program is supported by the broad donor community and is supplemented by funds from Sweden to support similar investments.

# # #

*Journalists should note that the WDR was first released in an advance edition on September 15.

To download the full WDR as well as related graphics, video and other materials, visit: www.worldbank.org/wdr2010

To read a recent report co-authored by Marianne Fay on “Adapting to Climate Change in Europe and Central Asia,” visit: http://go.worldbank.org/7OOC1E7AU0

The project UA - ENERGY EFFICIENCY is now in the pipeline.

2009-10-19T04:00:00.000Z

The project UA - ENERGY EFFICIENCY is now in the pipeline. To see more information, see the project information in the World Bank project database

The project ALCHEVSK STEEL MILL REVAMPING AND MODERNIZATION has changed to Closed

2009-10-15T04:00:00.000Z

The project ALCHEVSK STEEL MILL REVAMPING AND MODERNIZATION has changed to Closed. To see more information, see the project information in the World Bank project database

Global Crisis Hits Home in Emerging Europe and Central Asia

2009-10-03T07:40:09.000Z

Contacts:

Kristyn Schrader (90) 530-929-45-35

kschrader@worldbank.org

Tunya Celasin (90) 533-285-18-21

tcelasin@worldbank.org

ISTANBUL, October 3, 2009—The global economic crisis has reversed the impressive economic growth of recent years in Emerging Europe and Central Asia, hitting families hard with higher unemployment and lost wages. Financially weaker governments will need to protect poor people while strengthening institutions and infrastructure to attract investors, the World Bank said today at a press briefing at the World Bank/IMF Annual Meetings.

“The global financial and economic crisis has literally hit home in many parts of Emerging Europe and Central Asia,” said Philippe Le Houérou, World Bank Vice-President for Europe and Central Asia. “What started as a financial crisis has become a social and human crisis. The global crisis has come on the heels of the food and fuel crises, which had already weakened people in the region by reducing their purchasing power. Today, rising poverty and joblessness are pushing households into poverty and making things even harder for those already poor.”

For the past decade, many countries of Emerging Europe and Central Asia notched up impressive growth, moving them closer to the living standards of Western Europe and other advanced economies. But the crisis has hit them hardest and stopped that convergence. Growth has plummeted from a fast clip of 7.6 percent in 2007 to 4.7 percent in 2008, and is projected at negative 5.6 percent in 2009.

“For years now, Emerging Europe and Central Asia has roared along in high gear,” said Le Houérou. “But the global crisis and the drying up of external private financial flows are stalling the engine of growth, prompting many to downshift and some to even slip into reverse. The job now for the governments in the region is to speed up reforms. The role of the international community is to help countries get back in gear. For us at the World Bank, that means essentially focusing our support to governments in their efforts to clean up the banking sector so that banks can provide a lifeline for firms and businesses to grow and create jobs, improve the business climate to attract private capital flows, make public spending more efficient so that the benefits reach working families, and continue to finance key public investments in infrastructure.”

Unemployment and deficits on the rise

The global crisis has hit some countries worse than others but today there is a danger that the region faces a weak and jobless recovery. Some countries, such as Poland, have fared better than others. Still, the number of jobless in the region has jumped from 8.3 million in 2008 to 11.4 million in 2009. It has doubled in the Baltic countries, grown by 60 percent in Turkey, and by one-third in other countries in the region.

“Instead of the number of poor falling by 15 million in 2009, we now project poverty to increase by about 15 million,” said Indermit Gill, World Bank Chief Economist for the Europe and Central Asia Region. “There are already 145 million poor people in the region – or almost one-third of the total population. For them, the crisis has made an already tough existence even tougher. Much of the world is getting good economic news this autumn. But for workers and their families in Emerging Europe and Central Asia the news is not encouraging. To them, the talk of recovery may seem premature.”

In the face of the unprecedented crisis, governments in Emerging Europe and Central Asia will have many hard choices to make, given that government deficits will increase from 1.5 percent of GDP in 2008 to 5.5 percent in 2009, said Gill. This will put more pressure on governments to make spending more efficient.

“Social spending makes up more than half of government expenditures so governments will need to make education, health care and social security more efficient,” Gill said. “School systems need to be resized to fit shrinking enrollment numbers due to falling fertility. Health care has to be restructured because many countries now have the health problems of high-income countries with the fiscal resources of middle-income economies. And social security has to be restructured to recognize that many countries in the region have aged before they have become wealthy. Reforms will help make governments fiscally healthy, economies robust, and societies more fair. Every responsible policymaker should take a hard look at these reforms.”

Also, governments must continue to improve their business environment to attract investment. During the last decade, countries in Emerging Europe and Central Asia have made progress in improving the climate for doing business. The region has been the top performer in the World Bank’s Doing Business ratings for the last six years—led first by countries in central and southern Europe and more recently by those in the Caucasus and Central Asia. This year, five of the top ten reformers were from the region: Krygyz Republic, FYR Macedonia, Belarus, Tajikistan, and Moldova.

World Bank supporting reforms through lending and advice

While governments are in the lead, the World Bank is helping countries navigate their way through the crisis, Le Houérou said. For its part, the World Bank is providing budget support to countries to support promising reform efforts. During the past year, the World Bank has increased financial support to the region by 60 percent, from $8 billion last year to $12.5 billion this year with the aim of mitigating the impact of the crisis on the poor, stabilizing banks, and positioning countries for post-crisis recovery. In September 2009 alone, the Bank approved $2 billion in budget support to Hungary, Latvia, and Ukraine.

Along with funding, the Bank is offering analytical support and encouraging governments to expand selected social safety net programs. Currently, most countries in the region have good programs that could be expanded during the crisis, such as those in the Kyrgyz Republic, Albania and Georgia where benefits are most likely to reach the neediest people. At the same time, the Bank is advising governments on how to fix less efficient programs to ensure benefits are reaching the right target audiences. Although many countries in the region have excelled on improving the business environment, many countries have not improved social service delivery.

The World Bank’s client countries in Emerging Europe and Central Asia are currently using Bank funds for 53 projects spanning institutional reform, infrastructure and interventions to help the neediest. Also, through the World Bank’s private sector arm, the International Finance Corporation (IFC), the Bank has teamed up with the EBRD and EIB on a $31 billion fund to support the banking sector and to fund lending to businesses hit by the global economic crisis through equity and debt finance, credit lines, and political risk insurance. And the Bank’s political risk insurance arm, MIGA, has made up to $3 billion available for investments in the heavily hit economies of the region. Guarantees worth nearly half of a $1 billion were issued in support of shareholder loans made by parent banks to their subsidiaries in Ukraine and Russia.

For more information, please visit www.worldbank.org/eca

The project Programmatic Financial Rehabilitation Development Policy Loan 1 has changed to Closed

2009-09-24T04:00:00.000Z

The project Programmatic Financial Rehabilitation Development Policy Loan 1 has changed to Closed. To see more information, see the project information in the World Bank project database

The project Pension Administration Project has changed to Dropped

2009-09-24T04:00:00.000Z

The project Pension Administration Project has changed to Dropped. To see more information, see the project information in the World Bank project database

The project Programmatic Financial Rehabilitation Development Policy Loan 1 has changed to Active

2009-09-23T04:00:00.000Z

The project Programmatic Financial Rehabilitation Development Policy Loan 1 has changed to Active. To see more information, see the project information in the World Bank project database

World Bank Approves $400 Million Programmatic Financial Rehabilitation Development Policy Loan for Ukraine

2009-09-17T22:06:42.000Z

Contacts:

Andrei Gulay (38044) 49066 71/2/3

agulay@worldbank.org

Michael Jones, (202) 473-2588

Mjones2@worldbank.org

WASHINGTON, September 17, 2009 - The World Bank’s Board of Executive Directors today approved the Programmatic Financial Rehabilitation Development Policy Loan 1 (PFRL 1) for Ukraine in the amount of US$ 400 million.

PFRL 1 is the first of two development policy loans designed to address the impact of the financial sector crisis in Ukraine. The first loan aims to restore the stability of the core banking sector in the face of the ongoing crisis, while PFRL 2 will be aimed at restructuring the sector and enhancing the legal and regulatory framework to make it more resilient to future crisis.

The global financial crisis exposed preexisting weaknesses in Ukraine’s banking sector, leading to an acute economic crisis in which GDP is projected to contract by 15 percent in 2009. Pre-existing vulnerabilities in the banking sector came to the fore in late 2008 leading to a systemic liquidity and solvency crisis, including the loss of almost 30 percent of the deposits from September 2008 to May 2009. High loan to deposit ratios funded primarily by external borrowing, currency and terms mismatch, and loan concentration all contributed to the banking crisis.

“We are working with the Ukrainian authorities to provide effective and timely assistance in key areas, such as the financial sector,” said Martin Raiser, World Bank Country Director for Ukraine, Belarus and Moldova. “We hope that our loan will help to bolster confidence in the banking system in Ukraine, and thus lay the foundation for recovery and economic restructuring post-crisis.”

Key elements of reforms supported by PFRL 1 include the creation of a transparent process to ensure that banks are recapitalized with private funding and where that is not possible, recapitalized or resolved with public resources at the lowest possible cost. The reforms also included the recapitalization of three systemically important banks following this process.

In addition, PFRL 1 supports the approval of legal amendments that will make it faster to deal with vulnerable banks and will lower the cost to tax payers. The loan strengthens operations and the design of emergency funding arrangements for the Deposit Guarantee Fund – which insures the savings of depositors.

“The reforms undertaken in the context of PFRL 1 signal the Government commitment to restoring stability in the banking sector and protecting the savings of depositors,” said Aurora Ferrari, World Bank Senior Financial Sector Specialist for Ukraine. Moreover, she adds “The recently introduced legal amendments allow the authorities resolve banks faster, at lower cost, while still protecting depositors. The challenge going forward will be in the implementation of these tools and the completion of the restructuring of the sector.”

For more information about the World Bank in Ukraine, please visit http://www.worldbank.org.ua/

For more information, please visit the Projects website.

Ukraine: Programmatic Financial Rehabilitation Development Policy Loan

2009-09-17T22:03:25.000Z

WASHINGTON, September 17, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Ukraine: Programmatic Financial Rehabilitation Development Policy Loan

IBRD Loan: US$400 million

Terms: Maturity = 30 years; Grace Period = 5 years

Project ID: P115143

Project Description: The Programmatic Financial Rehabilitation Development Policy Loan (PFRL) in the Ukraine is the first of two development policy loans designed to address the impact of the financial sector crisis in Ukraine. The first loan aims to restore the stability of the core banking sector in the face of the ongoing crisis, while PFRL 2 will be aimed at restructuring the sector and enhancing the legal and regulatory framework to make it more resilient to future crisis. Key elements of reforms supported by PFRL 1 include the creation of a transparent process to ensure that banks are recapitalized with private funding and where that is not possible, recapitalized or resolved with public resources at the lowest possible cost. The reforms also included the recapitalization of three systemically important banks following this process. In addition, PFRL 1 supports the approval of legal amendments that will make it faster to deal with vulnerable banks and will lower the cost to tax payers. The loan strengthens operations and the design of emergency funding arrangements for the Deposit Guarantee Fund – which insures the savings of depositors.

Media Contact

Michael Jones

(202) 473-2588

mjones2@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64312881&piPK=64302848&theSitePK=40941&Projectid=P115143

For more information, please visit the Projects website.

Doing Business 2010: Eastern Europe and Central Asia Region Leads the World in Business Regulatory Reform

2009-09-09T00:15:00.000Z

Washington, D.C., September 9, 2009—In a record year for regulatory reform worldwide, Eastern Europe and Central Asia led all regions in the pace of reforms. Doing Business 2010: Reforming through Difficult Times finds that 26 of 27 economies in the region reformed regulations to create more opportunity for domestic firms.

Globally, a record 131 of the 183 economies surveyed reformed business regulations between June 2008 and May 2009, according to the report, the seventh in a series of annual reports published by IFC and the World Bank.

The region was the most active worldwide in reforming insolvency regimes and easing access to credit. Six economies improved their insolvency regimes: Albania, Estonia, Lithuania, Poland, Russia, and Tajikistan. Seven reformed their credit information systems: Armenia, Azerbaijan, Latvia, the Former Yugoslav Republic of Macedonia, Serbia, Tajikistan, and Turkey. The Kyrgyz Republic and Poland strengthened the legal rights of borrowers and lenders.

Ukraine conducted reforms in one of ten Doing Business indicators: protecting investors. In April 2009, after 9 years of parliamentary debate, Ukraine adopted the Law on Joint Stock Companies. The new law considerably strengthens the legal protection of minority shareholders. It requires the supervisory board to approve transactions between interested parties and prohibits those parties from participating in the process. The new law introduces detailed requirements for disclosing conflicts of interest to the supervisory board, increasing the transparency of the companies’ activities. It also spells out duties of supervisory board members and their liability in the event that their actions or inactions cause harm to the company.

Despite this important progress, reforms in other areas covered by Doing Business stalled, and Ukraine only improved marginally in its total rank from 146^th to 142^nd place.

“Governments in Europe and Central Asia continue implementing regulatory reforms as part of their long-term strategies, despite the many challenges of the past year,” said Neil Gregory, Advisor, Financial and Private Sector Development, World Bank Group. “They recognize that the quality of business regulation helps determine how easy it is to reorganize troubled firms, rebuild entrepreneurs’ confidence, and start new businesses,”

Reform activity among developing economies in the region is the strongest since 2004. The Kyrgyz Republic, the region’s leading reformer, moved up in the global rankings from 80 to 41 on ease of doing business, by implementing reforms in seven of the 10 areas measured by the report. Among other things, it expedited the issuance of construction permits and eased business start-up and property registration.

This year Rwanda was the top global reformer. There were 4 new reformers among the global top 10: Liberia, the United Arab Emirates, Tajikistan and Moldova. Others, aside from Rwanda, include Egypt, Belarus, the Former Yugoslav Republic of Macedonia, the Kyrgyz Republic, and Colombia.

“Reforms continue to move eastward across the region. Albania, Belarus, the Kyrgyz Republic, and FYR Macedonia implemented reforms in several areas for the third year in row,” said Svetlana Bagaudinova, an author of the report. “Inspired by their neighbors, Kazakhstan, Montenegro, and Tajikistan have also picked up the pace of reform,” she added.

Doing Business analyzes regulations that apply to an economy’s businesses during their life cycles, including start-up and operations, trading across borders, paying taxes, and closing a business. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure security, macroeconomic stability, corruption, skill level, or the strength of financial systems.

About the World Bank Group

The World Bank Group is one of the world’s largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world. For more information, please visit www.worldbank.org, www.miga.org, and www.ifc.org.

For more information about the Doing Business report series, please visit: www.doingbusiness.org

For more information on Doing Business 2010, please contact:

Nadine Ghannam +1 (202) 473-3011 Rebecca Ong +1 (202) 458-0434

E-mail: nsghannam@ifc.org E-mail: rong@worldbank.org

Contacts for region-specific queries on Doing Business 2010:

Central and Eastern Europe Central Asia

Ilya Sverdlov +7 (495) 411-7555 Nezhdana Bukova +7 (985) 411-3986

E-mail: isverdlov@ifc.org E-mail: nbukova@ifc.org

Southern Europe

Slobodan Brkic +381 (11) 30-23-750 Kristyn Schrader +1 (202) 458-2736

E-mail: sbrkic@ifc.org E-mail: kschrader@worldbank.org

World Bank Organizes a Press Tour to Kyiv HPP within the Hydropower Rehabilitation Project

2009-07-01T09:04:55.000Z

Kyiv, July, 1 2009 – Today the World Bank in Ukraine jointly with UkrHydroEnergo organized a press tour for journalists which included a visit to Kyiv Hydro Power Plant (HPP) and travel across Kyiv reservoir. The objective of the press tour was to highlight the potential of renewable energy in Ukraine and the objectives and achievements to date of the Hydropower Rehabilitation Project implemented with financial support from the World Bank. Mr. Semen Potashnik, the Head of UkrHydroEnergo, Mr. Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova and Mr. Dejan Ostojic, Lead Energy Specialist of the World Bank participated in the press tour.

The main objectives of the Hydropower Rehabilitation Project are to improve the reliability, efficiency and safety of the operation of UHE hydraulic structures and equipment and to improve their environmental performance. The latter will be achieved through the reduction in emissions of greenhouse gases, the installation of nonpolluting turbine runners, and the elimination of oil leaks into Dnipro and Dnister Rivers. The project will help increase the installed capacity of the Dnipro Hydropower Cascade by about 400 MW and its production by about 500 GWh which is equivalent to building a major new hydropower plant. The project also pioneered the concept of Carbon Financing in Ukraine as it was the first Joint Implementation Project under the Kyoto Protocol in the country.

“UkrHydroEnergo is proud to implement one of the first Joint Implementation mechanism projects in Ukraine and to pioneer the use of this new financing mechanism. The revenue from the sale of Emission Reduction Units to the World Bank Netherlands European Carbon Facility provides important added cash-flow to the project”, said Semen Potashnik, UkrHydroEnergo Chairman.

The reservoirs and banks of this large cascade are also potential sites for the development of several hundreds of MW of wind power generation which would further increase and diversify the renewable energy potential of the Dnipro cascade. By using pumped storage technology, such as the existing Kiev pumped storage plant, non-storable wind power can be converted into highly valuable hydroelectric capacity, which can be utilized to deliver for peak demand and thus help stabilize the entire power network. During the press tour, journalists were acquainted with this technological potential for renewables in Ukraine and the strategic importance of the Dnipro cascade in the past and future development of Ukraine’s energy sector.

“The Dnipro cascade was a major feat of engineering in the 20^th century”, - says Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova. “Through careful investments in its modernization and development we hope to preserve its strategic value for future generations, helping Ukraine generate power efficiently and in an environmentally sustainable way.”

Ukraine Is in the Midst of an Unprecedented Demographic Decline Compounded by a Health Crises, Says a New World Bank Study

2009-06-25T12:09:14.000Z

Kyiv, June 25, 2009. – About half of deaths before the age of 75 in Ukraine could be avoided through adequate prevention and treatment, says new World Bank study “An Avoidable Tragedy: Combating Ukraine’s Health Crisis – Lessons from Europe”, presented in Kyiv today. The study provides a diagnosis of demographic and health challenges in Ukraine and relates these challenges to experience and evidence from other European countries.

“Compared with citizens in other European countries, Ukrainians lead less healthy lives and receive poorer support from health services”, - says Rekha Menon, Senior Economist. “Premature mortality among adult Ukrainian males could be avoided through behavior changes but public awareness of health risks is low. The solution to this challenge is complex, and involves a combination of focus on primary health care and prevention and broader system wide changes in how health services are delivered and financed.”

Ukraine has the highest depopulation rate in Europe, the Report concludes. The probability of reaching old age in Ukraine is lower compared to Central European countries. This is especially true for Ukrainian males, with adult male deaths being at levels comparable to countries with less than one-fifth the GNP per capita of Ukraine. Moreover, Ukrainians spend almost 13 percent of their lives in poor health, compared to Poles where this number is 8 percent, or Slovenians and Czechs with 9 percent of live years spent in poor health. Non-communicable diseases and chronic conditions are responsible for the bulk of mortality in Ukraine, although communicable diseases such as HIV/AIDS and Tuberculosis have reached epidemic proportions and are a growing threat to the health of the Ukrainian nation. The health and demographic crisis is concentrated among the working-age population, especially males, and therefore entails high social and economic costs to be paid by the whole nation.

The report highlights that about half of deaths before the age of 75 in Ukraine could be avoided through behavior change and adequate prevention and treatment. In particular, 94 percent of mortality caused by three major risk factors: tobacco smoking, alcohol consumption and breach of road safety -- could have been avoided with adequate prevention. Furthermore, 25 percent of pre-mature deaths in Ukraine in 2004 could have been avoided with effective health care treatment. Early treatment at the primary care level could have avoided 80 percent of deaths among working age males and about 30 percent among working age females.

”Ukraine has made repeated attempts to launch health sector reforms, but their implementation has been slow and fragmented”- says Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova.“We hope the report will raise awareness of the huge social and economic costs of inaction and encourage policy makers to embrace health sector reform as a key priority for long-term socio-economic development.”

The World Bank supports improvements in health services through its portfolio of analytical and advisory work and through the Development Policy Loan program.

World Bank Debars Four for Engaging in Fraud in Bank-Financed Projects

2009-06-02T16:33:01.000Z

Contacts:

Michelle Porvaznik (202) 458-7716

mporvaznik@worldbank.org

WASHINGTON, June 2, 2009—The World Bank today announced that it has debarred a Ukrainian non-governmental organization, a Turkish firm and two individuals for having engaged in fraud in relation to World Bank-financed projects. The debarments, which resulted from investigations by the World Bank’s Integrity Vice Presidency (INT), are part of the Bank’s broader anti-corruption agenda.

Leonard McCarthy, Vice President for Integrity for the World Bank Group, said, “The outcomes of these cases demonstrate that the Bank is making significant strides in addressing fraud and corruption, which is especially important given the current economic crisis.”

Two Ukrainian entities debarred

The Ukrainian Centre for International Integration (UCII) is ineligible to be awarded a contract under a Bank Group-financed operation for a period of two years, and its former Executive Director, Natalia Yasko, is debarred for a period of three years.

"UCII had received a trust fund grant to assist the Ukrainian government in the preparation of a program of institutional and structural reforms under the Bank-financed Second Programmatic Adjustment Loan, but evidence indicated that UCII had submitted a falsified CV as part of its proposal." The government terminated the contract before any payments were made, and Yasko has since stepped down. No evidence connects UCII’s current management with the misconduct.

The alleged fraud was first reported to the government-run Project Implementation Unit (PIU), which researched the allegation and shared its findings with the Bank. The World Bank’s Integrity Vice Presidency (INT) then conducted an investigation and found evidence that confirmed the suspicion of the PIU.

After one year, UCII’s debarment may be reduced by one year if the organization has put in place an effective corporate compliance program acceptable to the World Bank, and has implemented this program in a manner satisfactory to the World Bank. In the case of Yasko, after two years, the period of debarment applicable to any organization she directly or indirectly controls may be reduced by one year if such organization has likewise put in place and implemented an effective compliance program.

Turkish firm and individual also sanctioned

In addition, Enerji Sistem Insaat ve Is Makinalari Sanayi Ticaret Limited Sirketi—ISTANBUL (Enerji Sistem) and its proprietor, Alamdar Esetoglu Galandarov, have been debarred for two years.

In the case of Enerji Sistem, an INT investigation found evidence that Galandarov—acting on behalf of the company—submitted a false bank reference letter in an attempt to win a multi-million dollar contract providing construction equipment for the Greater Baku Water Rehabilitation Project in Azerbaijan. Neither Enerji Sistem nor Galandarov can have their debarments reduced.

The debarments represent a substantial increase in the number of sanctions imposed by the Bank since last year. So far this fiscal year, the Bank has debarred thirteen firms and individuals.

Since 1999 the World Bank Group has debarred 355 firms and individuals for their involvement in fraud and corruption in Bank Group-financed projects.

####

Europe and Central Asia Facing Significant Climate Change Threats, But Are In ‘Adaptation Deficit’

2009-06-02T14:25:40.000Z

Contacts:
In Brussels: Alexander Rowland +32-478-319939
Arowland@worldbank.org

In Washington: Kristyn Schrader +1-202-458-2736
Kschrader@worldbank.org

BONN, June 2, 2009—The World Bank today warned that the impact of climate change in the Europe and Central Asia Region* will be more significant than expected due to a lingering post-Soviet legacy of environmental mismanagement and the poor state of much of the Region’s infrastructure, leaving the countries poorly prepared to adapt.

“Europe and Central Asia suffers from an ‘adaptation deficit’ that is already challenged by recent climate variability,” said Marianne Fay, Director of the World Bank’s World Development Report 2010, and author of the new report ‘Adapting to Climate Change in Europe and Central Asia’, “which will only worsen with the consequences of projected trends in climate in the coming decades.”

Fay added that “While almost two decades have passed since the breakup of the Soviet Union and its partner countries in Central and Eastern Europe, the legacy of environmental mismanagement and oversized infrastructure in countries outside the European Union still remains a dangerous holdover from the past. It greatly worsens the countries’ vulnerability to even modest changes in the climate.”

Launched today during the UNFCCC Bonn Climate Change Talks and on the eve of ‘World Environment Day’ (June 5^th), the report says that, contrary to popular perception, the Region is significantly threatened by climate change and is already experiencing the consequences: increasing variability, warmer temperatures, changing hydrology, and more extremes – droughts, floods, heat waves, as well as windstorms and forest fires.

Average temperatures across ECA have already increased by 0.5ºC in the south to 1.6ºC in the north (Siberia) since the early 1900s and overall increases of 1.6 to 2.6ºC above are expected by the middle of the century, with the greater changes occurring in the more northern latitudes. The north is projected to see greater temperature changes in winter, with the number of frost days declining by 14 to 30 days over the next 20 to 40 years. Southern parts of the region are expected to see the greatest changes in the summer, with the number of hot days increasing by 22 to 37 days over the same period. This warming trend is significant: by mid-century, countries such as Poland or Hungary are expected to experience the same number of hot days (>30^oC) as today’s Spain or Sicily.

According to Fay, “Increases in temperature are affecting hydrology, with a rapid melting of the region’s glaciers and a decrease in winter snows. Many countries are already suffering from winter floods and summer droughts – with both Southeastern Europe and Central Asia at risk for severe water shortages. Summer heat waves are expected to claim more lives than will be saved by warmer winters.”

The report says that changes in sea level, another impact of climate change, will affect the Region’s four basins – the Baltic Sea, the East Adriatic and Mediterranean coast of Turkey, the Black Sea, and the Caspian – and the Russian Arctic Ocean. On the Baltic, Poland, with its heavily populated low-lying coast, is the most vulnerable. Along the Adriatic and the Mediterranean, storm surge and saltwater intrusion into aquifers threaten parts of the Croatian, Albanian, and Turkish coasts. Sea level rise in the Black Sea is already threatening numerous ports and towns along the Russian, Ukrainian, and Georgian coasts. In the Caspian Sea, increased surface evaporation is projected to decrease water levels by as much as 6 meters by the end of the 21st century, imperiling

fish stocks and affecting coastal infrastructure.

However, according to the report, legacy issues make the Region even more vulnerable. Under the Soviet system, economic growth was pursued in blatant disregard to natural conditions. When water was needed for irrigation, the rivers feeding the Aral Sea were diverted to the desert to produce rice, fruit, and cotton. Uzbekistan became one of the world’s largest exporters of cotton, but at the cost of destroying the Aral Sea in the process.

The historic poor environmental management across the Region has its consequences. Even countries and sectors that stand to benefit from climate change are currently poorly positioned to do so. According to Fay, “Much has been made of the fact that warmer climate and abundant precipitation in the northeastern part of Europe and Central Asia – Kazakhstan, Russia, and Ukraine – will open up a new agricultural frontier. However, any local potential benefit pales in comparison to the costs of the region’s relative inefficiency and low productivity. While world grain yields have been growing on average by about 1.5 percent per year, they have been falling or stagnant in these three countries.”

But over the next ten to twenty years, Europe and Central Asia’s resilience to climate shocks can be strengthened with improved infrastructure and environmental management systems, all of which will have positive consequences for sustainable development. Regardless of climate change, Europe and Central Asia will gain from improving its water resource management, tackling its environmental pollution problems, upgrading neglected infrastructure and housing, and strengthening disaster management. These steps will also greatly strengthen the Region’s ability to cope with the current climate.

Adapting to the changing climate will also require specific climate-related actions: investments in weather and water monitoring; the capacity to interpret and disseminate climate information; institutions to support adaptation efforts, whether by large firms or small farmers; and policies to foster incentives for informed, proactive responses to the challenges of climate change.

The Europe and Central Asian countries will need to develop strategies to reduce vulnerability to future changes. Jane Ebinger, World Bank Senior Energy Specialist, emphasized the need for stakeholder involvement in adaption. “Adaptation strategies will require steps to bring together policy makers, planners, asset owners, academics, and civil society to discuss and assess the risks a country may face from current weather and projected climate change, and identify possible adaptation measures, their costs and benefits. In addition, the experience of countries, regions, or cities currently developing and implementing adaptation plans offers valuable lessons and methodologies.”

*Europe and Central Asia Region economies: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Georgia, Hungary, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Lithuania FYR Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia, Slovenia, Tajikistan, Turkey, Turkmenistan, Ukraine, Uzbekistan,

For more information, please visit: www.worldbank.org/eca

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Strengthening the Ukrainian Banking Sector: The Principles for Government Involvement

2009-06-01T11:00:00.000Z

The International Monetary Fund (IMF) and the World Bank (WB) have been working very closely since October 2008 with the National Bank of Ukraine (NBU), the government and other authorities to implement a comprehensive bank resolution strategy. One important recent outcome of this was the government’s announcement of its intention to recapitalize several systemically important banks. This article explains the reasoning behind the proposed solution and why state involvement in individual commercial banks is necessary.

In the wake of the global financial and economic crisis, Ukraine experienced significant stresses in its banking sector. These have become evident in two major ways. On the asset side, the quality of loan portfolios has worsened. As a result of the deteriorating economic environment and the sharp depreciation of the exchange rate, an increasing number of individual and corporate borrowers have encountered difficulties in servicing their loans. On the liability side, deposits plunged by 20 percent system wide between October and March, although since then the situation has stabilized and deposits have started to flow back into the system.

Signs of stress have varied significantly across banks in Ukraine, but the risk remains that difficulties in some banks turn into a systemic banking crisis. This occurs when confidence deteriorates to the point where concerned despositors deem no bank sufficiently safe and, rather than changing banks, leave the banking system altogether. The extent of such contagion typically depends on the size of the banks that face acute liquidity or solvency problems.

If a systemic crisis is likely, the state must step in. While the central bank provides liquidity to the financial system, the government uses budgetary resources to provide new capital, loans, and/or guarantees for systemic banks, whose shareholders are unable to raise additional capital. In this situation, the authorities pursue these three important objectives: (i) restore society’s confidence in the country’s banking system, (ii) protect the system at a minumum cost to taxpayers, and (iii) strengthen the system to make it more resilient to future crises.

These objectives are at the core of the Ukrainian authorities’ strategy to strengthen the banking sector, which they developed with the support of the International Financial Insitututions and the donor community. It is precisely with the purpose of restoring trust in the system that the Government of Ukraine announced its intention to provide new capital to a number of banks, which together hold a large share of deposits from Ukrainian citizens and businesses. The intention is to restore free and full access for the depositors in the problem banks, in the shortest timeframe possible, and have depositors safely return their money to the banks. In turn, this confidence of depositors will allow credit flows to resume, reduce pressure on interest and exchange rates, and thus facilitate economic recovery.

The government's bank recapitalization program, the legislative aspects of which were passed by Parliament in November, is designed to help the banking system survive the current depressed state of the economy, while still holding bank owners liable for the banks’ losses. This involves no bailout of private bank owners with public funds. The scheme is considered necessary at this point, given the scarcity of new capital from existing owners or new investors in Ukraine and abroad under present market conditions. The IMF and the World Bank support this scheme as the least costly solution to strengthen the Ukrainian banking system. Let us look at the specific elements.

Diagnostic: The recapitalization scheme started with targeted valuations of the loan portfolios of the largest banks to identify possible losses and capital shortfalls. Where needed, existing bank shareholders have been asked to put in additional capital to meet the minimum required by NBU regulations. For those banks defined as systemic by the NBU (banks with assets accounting for at least 2% of system assets or 1% of total deposits of individuals) and owners are unable to inject capital, the state has agreed to step in.

Recapitalization and liability management: Good crisis management calls for the state to be an investor of last resort, and to choose very diligently how to spend limited public funds. Troubled financial institutions, like any other private corporation, face a hierarchy of claims on their resources. First and foremost are depositors, then come secured creditors, then non-secured creditors, and last come existing shareholders. Prudent crisis management must ensure that public funds are used first and foremost to satisfy the claims of depositors and secured creditors. Existing owners and unsecured creditors of problem banks will loose some or indeed all of their investments. Once liabilities have been restructured, the banks benefiting from recapitalization should have access to liquidity from the central bank to ensure that all their liabilities can be duly serviced.

Corporate governance and control: Once the state, represented by the Government, injects capital into a bank, it will need to take full control of the bank, install new managers who are experienced bankers and do not have conflicts of interest in relation to the assets or liabilities of the bank, and are tasked first of all with the fast restoration of depositors’ access to their funds. De facto nationalization of troubled banks has been a point of debate in other countries. However, in Ukraine, the capital needs of the several systemically important problem banks are such that the state inevitably will become the major shareholder. Moreover, in Ukraine’s specific circumstances the interests of the state as a shareholder are best secured if it has full corporate control. Other countries, including developed countries, are now moving in the same direction.

Asset restructuring and sale: When access to deposits has been restored and the financial condition of the bank has been stabilized, management should seek to maximize asset values and prepare the banks for future sale back to the private sector. The banks may be resold as a going concern, but in some cases, asset values will be maximized, or the need for additional state capital minimized, by merging the bank with another bank, selling assets in lots or transferring assets and liabilities to other financial institutions. Whatever the route chosen, the resulting revenues will at least partially compensate taxpayers for the initial capital outlays for crisis resolution. Indeed, the state’s involvement should be viewed as temporary, covering the period of macroeconomic uncertainty when private sector sources of funding are scarce or non-existent. Needless to say, the newly recapitalized banks should be managed without political interference; they should be subject to the normal regulatory and supervisory framework maintained by the NBU, and should not distort the playing field.

Bank resolution: There are other elements of the banking sector rehabilitation strategy developed with the authorities. For the many commercial banks in Ukraine that may not be considered systemic but face acute liquidity and capital shortfalls beyond what their owners can deal with, the NBU must have a full range of resolution tools to act quickly and minimize risks. These include not only the option of liquidation but also the ability to merge weaker banks with stronger institutions and to transfer their assets and liabilities to other banks. As with the systemically important banks, the least costly solution to tax payers means that equity holders and unsecured creditors will need to pay the price for the risks they have taken and cannot expect to have their investments protected. For effective bank resolution, legislative amendments are critically needed and have been elaborated jointly by the Ministry of Finance and the NBU – the success of the strategy will need the support of Parliament for these amendments. Voters should take note.

These are the main elements of Ukraine’s banking sector rehabilitation strategy. They have been extensively discussed within the Government and with the NBU. Now is the time to move forward decisively with the implementation of the strategy. Delays would lead to further losses of assets and increase the costs of the state. The stabilization of deposits during May 2009 so far provides welcome tail-wind and increases the chances of success. Consistency and persistence will also be critical. Counter-productive moves such as the recent ban on foreclosures should be avoided.

In Ukraine as elsewhere, the unprecedented economic and financial crisis is casting the state in a leading role. To rise to this challenge requires leadership and consistency in implementation, often in the face of strong private sector resistance. The IFIs will continue to support the authorities in making sure scarce public funds are well spent. Private investors interested in rapid crisis resolution and the emergence of a healthy and efficient financial sector following the current turmoil will want to ensure the same.

USD 400 MILLION ROAD AND SAFETY IMPROVEMENT PROJECT LAUNCHED IN KYIV TODAY

2009-05-19T10:00:00.000Z

KYIV, May 19, 2009 – The Government of Ukraine and the World Bank today officially launched the implementation of the Ukraine Roads and Safety Improvement Project. The Loan Agreement for the USD $400 million project was signed on April 21. The objective of this first World Bank financed transport project in Ukraine is to improve the condition and quality of sections of the M-03 road and increase traffic safety along Ukraine’s main road network. It will be implemented by the State Road Administration of Ukraine, Ukravtodor.

“I am pleased that implementation of this important project is moving ahead swiftly.” says Martin Raiser, World Bank Country Director for Ukraine, Moldova and Belarus, “The investments in upgrading Ukraine’s road infrastructure will help lay the foundations for future growth and competitiveness. At the same time, they will create demand for local jobs and civil works, thus helping reduce the negative impact of the current crisis on people’s livelihoods.”

The Road and Safety Improvement Project is an integral part of The State Road Sector Reform Program for the next 3 years. This Program in particular focuses on improving the efficiency of road sector management and financing, including: (i) upgrade of the current road management system, (ii) expand the role of the private sector, and (iii) introduce international best practice contracting procedures and rules. In addition, the Project will make an important contribution to reducing fatal accidents at key black spots across Ukraine.

“The level of fatal road accidents in Ukraine exceeds the European average by three times.”, emphasizes Andreas Schliesser, Task Team Leader of the Road and Safety Improvement Project, “Through physical investments and an emphasis on public education, we hope to bring this number down and make road travel not only more comfortable and efficient but also a lot safer.”

During the Project launch workshop, implementation details will be reviewed and Ukrainian and World Bank experts will review the physical conditions of the M3 road on location. The aim is to start physical implementation before the end of 2009.

World Bank Supports Ukraine`s Economy Though a New Infrastructure Project

2009-04-21T12:24:34.000Z

KYIV, April 21 – A Loan Agreement between the government of Ukraine and the World Bank for the USD $400 million Roads and Safety Improvement Project was signed today by Pablo Saavedra, World Bank Acting Director for Ukraine, Belarus and Moldova and Vadym Gurzhos, Head of the State Road Administration of Ukraine, following the project’s approval by the World Bank’s Board of Executive Directors on April 7, 2009. The project is aimed at improving the condition and quality of a 120 kilometer section of the M-03 road and increasing traffic safety throughout the national road network.

“This project is also part of the World Bank’s response to the economic crisis affecting Ukraine, and would help creating jobs and domestic demand for the real sector whilst investing in needed infrastructure to enable medium-term economic growth”, says Pablo Saavedra, World Bank Acting Director for Ukraine, Belarus and Moldova.

In the framework of Ukraine’s strategy of trade integration, strengthening priority transport corridors from neighboring countries and from the country’s network to the European Union is a key element. This project is part of that strategic vision. Moreover, the aim of the Government is to improve significantly road safety by reducing road traffic accidents. Currently, the fatal traffic accident rate in Ukraine is among the region’s highest – above three times that of the EU. The Roads and Safety Improvement Project is also an integral part of The State Road Sector Reform Program for the next 3 years, which focuses in improving the efficiency of the road sector management and financing.

This project will finance various activities under the following 3 main components:

1. Road Rehabilitation of a 120 kilometer section (Boryspil-Lubny) of the Kyiv-Kharkiv-Dovzhansky road (M-03). This component comprises civil works for the rehabilitation/strengthening of the existing 2x2 lanes of the M-03 road, including safety measures such as signaling, lighting in critical sections, and crash barriers as well as pedestrian crossings, parking, and special facilities.

2. Road safety improvement. The project will carry out a program of safety measures for vehicles and local inhabitants at traffic accident black spots in public roads; about 110 black spots identified will be targeted. This component will fund the supply and installation of road safety improvements such as vertical and horizontal signaling, reflectors (cats’ eyes), rumble strips, and modern crash barriers on the most critical points in the roads network.

3. Capacity Building through the provision of advisory services and training and equipment to enhance road management in line with best international practices.

The project Roads and Safety Improvement Project has changed to Active

2009-04-10T04:00:00.000Z

The project Roads and Safety Improvement Project has changed to Active. To see more information, see the project information in the World Bank project database

Ukraine: Roads and Safety Improvement Project

2009-04-07T22:33:20.000Z

WASHINGTON, April 7, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IBRD Loan: $400 Millon

Terms: Maturity = 30 years; Grace = 5 years

Project Description: The Roads and Safety Improvement Project for Ukraine aims to improve the condition and quality of sections of the M-03 road and increase traffic safety along Ukraine’s main road network. It will be implemented by the State Road Administration of Ukraine, Ukravtodor. The project forms part of the World Bank’s response to the social and economic crisis affecting Ukraine. It will lay the foundations for future growth and competitiveness, while at the same time creating jobs and fiscal stimulus to mitigate the effects of the economic downturn. Ukraine is an important transit country given its location between Russia and other members of the Commonwealth of Independent States, and the European market. The project will help integrate Ukraine’s transport network with that of the EU, promote Ukraine’s transit potential, and maximize the use of Ukraine’s existing transport assets. It will also contribute to making travel by road safer, thus helping to reduce the high rate of accident related deaths and injuries in Ukraine (7,690 died in road accidents in 2008).

Media Contact

Michael Andrew Jones

(202) 473-2588

mjones2@worldbank.org

For more project information, please visit:

http://web.worldbank.org/external/projects/main?pagePK=64312881&piPK=64302848&theSitePK=40941&Projectid=P100580

For more information, please visit the Projects website.

The project HYDROPOWER - ADDITIONAL FINANCING is now in the pipeline.

2009-04-07T04:00:00.000Z

The project HYDROPOWER - ADDITIONAL FINANCING is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Programmatic Financial Rehabilitation Loan is now in the pipeline.

2009-04-01T04:00:00.000Z

The project Programmatic Financial Rehabilitation Loan is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Continues Energy Sector Support

2009-03-03T08:21:32.000Z

Kyiv, March 3, 2009. - The Government of Ukraine and the World Bank today officially launched the implementation of the UkrainePower Transmission Project. The World Bank’s Board of Executive Directors approved a US$ 200 million loan for this project in August 2007. The Loan Agreement was signed in November 2007 and ratified by the Ukrainian parliament on 29 October 2008.

The main objective of the Power Transmission Project is to improve the security, reliability, efficiency and stability of electricity supply through the rehabilitation of transmission substations and the strengthening of the power transmission network. The project will also aim to improve the institutional capacity and technical capabilities of the transmission system operator, UkrEnergo (UE), so that it can assure secure and reliable operation of the high voltage power grid, and, therefore, facilitate unimpeded operation and opening up of the electricity market. This is the second project financed by the World Bank as part of a sector-wide long-term energy program, which also includes extensive technical assistance to the National Energy Regulatory Commission and the Ministry of Fuel and Energy.

“The modernization of Ukraine’s energy system is a priority for the World Bank”, - says Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova.– “We are happy to be launching this important project at this time to help Ukraine improve its energy efficiency, thereby mitigating the effects of the economic crisis but also alleviating constraints on long-term growth.”

The Power Transmission Project comprises five key components: rehabilitation of transmission substations, strengthening of the transmission network, stabilization of the Crimea Regional Power Grid, institutional development of UE, and implementation of the Wholesale Electricity Market concept. It is expected that investments under the project will (a) reduce the amount of electricity not delivered to consumers due to network failures by 35 GWh per year; (b) reduce transmission losses and peak capacity requirements by 14MW; and (c) improve voltage quality in dozens of transmission substations across the country.

“The Power Transmission Project will help improve performance of the electricity grid and create conditions for increasing electricity trade in the domestic and international markets.” says Dejan Ostojic, Project Team Leader. “As such, it will help Ukraine utilize its existing energy resources more efficiently, contributing to savings of US$ 38 million per year, and help lay the foundation for Ukraine’s integration into the European Energy Community.”

EBRD, EIB and World Bank Group join forces to support Eastern Europe

2009-02-27T09:00:00.000Z

For EBRD:

Anthony Williams

Tel: +44 20 7338 6997

Email: WilliamA@ebrd.com

For EIB:

Gill Tudor

Tel: +352 43 79 8 31 53

Email: g.tudor@eib.org

For World Bank Group:

Lotte Pang

Tel: +12027584290

Email: LPang@ifc.org

Washington, 27 February 2009 - The largest multilateral investors and lenders in Eastern Europe - the EBRD, the EIB Group, and the World Bank Group - have pledged to provide up to €24.5 billion to support the banking sectors in the region and to fund lending to businesses hit by the global economic crisis.

This initiative complements national crisis responses and will deploy rapid, large-scale and coordinated financial assistance from the International Financial Institutions to support lending to the real economy through private banking groups, in particular to small and medium-sized enterprises. The financial support will include equity and debt finance, credit lines, and political risk insurance.

The response takes into account the different macroeconomic circumstances in and financial pressures on countries in Eastern Europe, acknowledging the diversity of challenges stemming from the global financial retrenchment.

EBRD President Thomas Mirow said: "The institutions are working together to find practical, efficient and timely solutions to the crisis in eastern Europe. We are acting because we have a special responsibility for the region and because it makes economic sense. For many years the growing integration of Europe has been a source of prosperity and mutual benefit and we must not allow this process to be reversed.”

“This joint action plan will help speed up the delivery of vital finance through the banks to support the real economy of hard-hit countries in Central, Eastern and Southern Europe, and particularly to help small businesses survive in these turbulent times,” said EIB President Philippe Maystadt.

“This is a time for Europe to come together to ensure that the achievements of the last 20 years are not lost because of an economic crisis that is rapidly turning into a human crisis,” said World Bank Group President Robert B. Zoellick. “I welcome the close cooperation among the EBRD, the EIB and the World Bank Group, and am committed to making this partnership work as we move forward to address the risk of a crisis of the banking sector in Eastern Europe.”

Under the two-year plan:

The EBRD will provide up to €6 billion for the financial sector in 2009-10 in the form of equity and debt finance, to banks and directly to SMEs, and trade finance.
The EIB will provide some €11 billion in SME lending facilities in Central, Eastern, and Southern Europe, of which €5.7 billion is already available for rapid disbursement, with a further €2.8 billion set for approval by end-April and further tranches expected to follow. The EIF, the EIB Group's venture capital and SME guarantee arm, is also aiming to increase its activity in the region over the next two years.
The World Bank Group will provide support of about €7.5 billion:
- IFC, through its crisis response initiatives in sectors including banking, infrastructure, and trade as well as through its traditional investment and advisory services, is expected to contribute up to €2 billion;
- IBRD intends to increased lending in Europe and Central Asia up to €16 billion in 2009-10 out of which up to €3.5 billion is envisaged for addressing banking sector issues in emerging Europe;
- MIGA will provide political risk insurance capacity of up to €2 billion for bank lending, subject to Board approval.

The response to Europe’s integrated financial markets requires fast and coordinated action; from parent banks, which own a large part of the region’s financial sectors; from systemically important local banks; from home and host country authorities of cross-border banking groups and from the European institutions and the IFIs.

By jointly addressing urgent financing needs, the three institutions in this initiative are drawing on their own mandates and specific capabilities to provide financial support.

The initiative goes beyond the pure provision of finance by engaging all parties concerned to seek appropriate solutions to the problems caused by the global economic crisis.

The IFI initiative has been developed in the broader context of the support that is being provided by parent banks to their subsidiaries in Eastern Europe, to provide capital where needed and maintaining adequate funding levels.

The IFIs welcome the support that that has already been provided to some countries by IMF programmes that have had a clear stabilizing impact and have helped to raise confidence.

The IFIs believe firmly that coordinated action among the IFIs, the bank groups, governments across Europe and the European institutions will help the financial sector in the region emerge robustly from the current crisis.

For the communique by The European Bank For Reconstruction And Development, The European Investment Bank Group, and The World Bank Group please click here

Supporting Better Access to Municipal Services in Ukraine

2009-02-04T06:38:57.000Z

Kyiv, February 4, 2009. - The Government of Ukraine and the World Bank today officially launched the implementation of the Urban Infrastructure Project for Ukraine. The World Bank’s Board of Executive Directors approved a US$140 million loan for this project on August 28, 2007. It was ratified by the Ukrainian parliament in October, 2008. The Swedish International Development Cooperation Agency (SIDA) is assisting with a grant of about US$ 5.6 million to support energy efficiency, technical assistance and investments.

The project will fund the replacement of pumps and related infrastructure in municipal water utilities in selected cities with more efficient and energy saving equipment to reduce costs and improve energy efficiency. The project will also fund rehabilitation of water supply and wastewater systems, and help municipal utilities improve their operational efficiency. Specific investments have been indentified in Chernihiv, Ivano-Frankivsk and Odessa, while investments in other cities throughout the country are being selected under a competitive process.

Water supply and sewerage systems are in serious need of rehabilitation, exacerbated by the low level of energy efficiency of existing pumps, with resulting additional energy requirements estimated at around 50 percent. The potential energy savings by replacement of the energy intensive pumps for the country as a whole are in the range of 1.0 billion to 1.75 billion kWh per year (equivalent to cost savings of USD 50 million per year). Energy intensity in Ukraine is the highest in Europe: for example, it consumes 3.6 times more energy per unit of GDP than Germany if calculated at Purchasing Power Parity exchange rates.

The project consists of the following main components:

Institutional Strengthening: This component will help utilities to adopt commercially oriented business-type practices and work towards achieving financial viability through the preparation of annual Business Plans.
Rehabilitation Investments: This component will fund rehabilitation investments in the water, wastewater and solid waste sectors in the cities of Chernihiv, Ivano-Frankivsk and Odessa to help improve the quality and reliability of municipal services.
Energy Efficiency: This component will replace old electromechanical equipment in municipal utilities by energy-efficient equipment thereby reducing operating costs and environmental pollution. The component will provide financing to selected municipal utilities based on a competitive selection process. Municipal utilities that are able to provide economic and technical analysis confirming potential energy savings of a minimum of 15% through the proposed investments and confirmed by the Ministry of Finance of Ukraine are allowed to access these funds.

”Improving the quality of municipal services and their energy efficiency is a key objective of our partnership with Ukraine”, – says Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova. – The rehabilitation of municipal infrastructure will lead to the reduction of high operating costs and further improve the financial viability of the utilities. In addition, at this time of economic crisis, the capital spending financed by the project will also contribute to reviving local economies and job markets.”

The project FSD/PSD ADV SERVS TA has changed to Closed

2009-02-02T05:00:00.000Z

The project FSD/PSD ADV SERVS TA has changed to Closed. To see more information, see the project information in the World Bank project database

The project Tuberculosis and HIV/AIDS Control Project has changed to Closed

2008-12-31T05:00:00.000Z

The project Tuberculosis and HIV/AIDS Control Project has changed to Closed. To see more information, see the project information in the World Bank project database

The objective of the Tuberculosis and HIV/AIDS Control Project for the Ukraine is to reduce tuberculosis and HIV/AIDS morbidity and mortality through an effective national strategy for TB control adapted to the world standard, and an HIV/AIDS Program largely focused on prevention of transmission of the disease among high-risk groups. There are three project components. The first component focuses on controlling tuberculosis with training and education, diagnosis, treatment, public awareness campaigning, and monitoring and evaluation. The second component provides finance to stabilize the epidemiological situation in the country, reduce risky behavior among young people, and reduce the social tension in the society and negative consequences of the epidemic. Specifically, this component finances a pilot project to help Ukraine develop capabilities to treat a limited number of adults and children infected with HIV, with anti-retroviral drugs. The successful implementation of this pilot will help Ukraine access added funds from the Global Alliance. The third component comprises the financing of TB and AIDS control activities in the prison system. It was designed as a separate component because of the institutional nature of the prison system, a self-contained and centrally managed system.

The project Development Policy Lending 3 (DPL 3) has changed to Closed

2008-12-25T05:00:00.000Z

The project Development Policy Lending 3 (DPL 3) has changed to Closed. To see more information, see the project information in the World Bank project database

Ukraine has been beset by political volatility over the past three years. While the country has made major strides in advancing democratic development, political and media freedoms, economic reforms, and enforcement of property rights, it has also experienced continuous political volatility. Domestic politics are highly contested, constitutional arrangements on the division of powers between the president and the parliament remain unclear, and the judiciary has become largely politicized and undermined as an independent institution. The operation builds on the achievements of the previous operations in the programmatic series and carries forward the three-pillar agenda, namely: (i) improving the investment climate to sustain growth; (ii) creating fiscal space for growth through strengthened public finances and public sector reforms; and (iii) improving service delivery and social inclusion. As regards to improving the investment climate, this operation supports the enactment of a law on joint stock companies. This law is breakthrough legislation on corporate governance that will encourage transparency in corporate practices, promote Foreign Direct Investment (FDI), and reinvigorate the securities market. It also supports a package of legislative and regulatory measures that lay out initial steps in building a framework to rehabilitate the banking system. This operation also supports executive actions to reduce the quasi-fiscal deficit in the energy sector as well as to improve the business environment for new firm growth by reducing the frequency and costs of business inspections. In terms of fiscal policy and public administration, the Third Development Policy Loan (DPL-III) supports a new procurement framework, which signals the commitment of the government to increased efficiency and transparency in public spending. As in prior operations, the DPL also supports a deficit target for 2007 and 2008. There are also a number of measures supported by the DPL geared to improving tax policy, tax administration, and budgeting practices. In terms of social areas, this operation supports focused achievements in implementing education quality measurements and higher transparency mechanisms in access to higher education.

The project Development Policy Lending 3 (DPL 3) has changed to Active

2008-12-23T05:00:00.000Z

The project Development Policy Lending 3 (DPL 3) has changed to Active. To see more information, see the project information in the World Bank project database

The project Development Policy Lending 3 (DPL 3) is now in the pipeline.

2008-11-19T05:00:00.000Z

The project Development Policy Lending 3 (DPL 3) is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Railway Modernization is now in the pipeline.

2007-12-22T05:00:00.000Z

The project Railway Modernization is now in the pipeline. To see more information, see the project information in the World Bank project database

The project FSD/PSD ADV SERVS TA is now in the pipeline.

2007-10-27T04:00:00.000Z

The project FSD/PSD ADV SERVS TA is now in the pipeline. To see more information, see the project information in the World Bank project database

The project UKRAINE PHASE II BIODIVERSITY ENABLING ACTIVITY is now in the pipeline.

2007-10-27T04:00:00.000Z

The project UKRAINE PHASE II BIODIVERSITY ENABLING ACTIVITY is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Access to Financial Services Project is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Access to Financial Services Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Development of State Statistics System for Monitoring Social & Economic Transformation Project is now in the pipeline.

2007-10-25T04:00:00.000Z

The project Development of State Statistics System for Monitoring Social & Economic Transformation Project is now in the pipeline. To see more information, see the project information in the World Bank project database

There is a cycle of a lack of resources for statistical work, causing poor quality statistics, lack of demand, and a corresponding lack of resources. Budget cuts aimed at reducing administrative expenses have often, disproportionately affected statistical agencies. Inadequate levels of investment have left statistical agencies unable to take advantage of new technology, especially in computing and telecommunication. As a result, statistical services have become dependent on donor finance, leading to a donor-driven agenda of statistical activities, and inadequate resources for maintaining statistical infrastructure, and routine data collection. The statistical Capacity Building Program - STATCAP - is a means to implement long-term, comprehensive statistical capacity building plans, i.e., a mechanism to apply lessons from past statistical projects to future projects, in the form of best practice from shared expertise. This first Phase of the program will help Burkina Faso, and Ukraine, finance a share of investment and recurrent expenditures, based on the assessment, and plans contained in each country's Statistical Master Plan. The STATCAP will support improvements, in the following components. 1) The institutional framework for national statistics, which may include improvements in legal, and regulatory mechanisms to maintain integrity, independence and confidentiality, in the management and coordination systems for national statistics. 2) Statistical infrastructure, such as statistical registers, sampling frames, classifications, databases, geographic information systems. 3) The effectiveness and efficiency of statistical operations, including methods used to collect, and disseminate statistical data, and skills and capacity of staff involved. 4) Investment in physical infrastructure and equipment, to ensure that physical and communication infrastructure facilitate the production, and dissemination of data by statistical agencies.

The project State Tax Service Modernization Project (APL #1) is now in the pipeline.

2007-10-25T04:00:00.000Z

The project State Tax Service Modernization Project (APL #1) is now in the pipeline. To see more information, see the project information in the World Bank project database

The First State Tax Service Modernization Project (STSMP) seeks to support a long-term and comprehensive modernization of tax administration in Ukraine by establishing sound organizational and operational foundations for the State Tax Service (STS). The Organization and Management (O&M) Modernization component will consist of several components, the first of which, strategic project management, will build on the State Tax Administration's capacity to implement major strategic projects through design, planning, testing and project management. Organizational consolidation, the second sub-component of the O&M component addresses the consolidation of the STS's organizational structure. Human resource management the third sub-component focuses on priority-tactical needs in the area of human resource management. Management capacity building, the fourth sub-component, addresses priority-tactical needs in the area of executive and middle management. Legislative and statistical analysis, the fifth sub-component, addresses priority-tactical needs in the area of legislative and statistical analysis. Stakeholder relations, the sixth sub-component, addresses a combination of priority-tactical and strategic needs in the management of the STS's relations with its external and internal stakeholders. The Operations Modernization component will consist of: a prototype core tax administration operation comprised by prototype support and implementation; a customer service call center; compliance strengthening; and large taxpayer office operations support.