NOK 1 billion for civilian infrastructure and reconstruction in Ukraine

Press release | Date: 14/09/2023 | Office of the Prime Minister, Ministry of Foreign Affairs

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Norway is providing NOK 1 billion to support the World Bank’s efforts to maintain civilian infrastructure and to start reconstruction efforts in Ukraine. ‘Norway stands ready to provide long-term support to Ukraine,’ said Prime Minister Jonas Gahr Støre.

This funding is being provided under the Nansen Support Programme for Ukraine, which was approved by a broad majority in the Storting (Norwegian parliament) in March. Support from Norway via the World Bank has been used among other things to provide Ukrainian homes with access to electricity, to keep schools open and to ensure that Ukrainian men, women and children can get the health care that they need.

Bombed building in Ukraine — Building in Ukraine. Credit: Pexels

‘Ukraine has an enormous and growing need for economic support. Our funding will help to alleviate the economic and social crisis the Ukrainian people are currently facing,’ said Mr Støre.

Mr Støre emphasised that the World Bank has rapidly mobilised substantial funding to help Ukraine and has a proven ability to deliver.

Prime Minister Støre had a meeting today with World Bank President Ajay Banga. Topics for discussion included support to Ukraine, climate finance and the need to increase investments in renewable energy.

Meeting table at the Office of the Prime Minister — Prime Minister Jonas Gahr Støre and Minister of International Development Anne Beathe Tvinnereim met with World Bank President Ajay Banga 14 September 2023. Credit: Kaja Schill Godager / Office of the Prime Minister

Support in line with Ukraine’s priorities

Norway’s support is based on Ukraine’s own priorities. The Ukrainian authorities are seeking to ensure that the government administration can continue to function and deliver essential services. This requires public-sector investment in the repair of critical infrastructure.

‘Russia’s war of aggression and targeted attacks on Ukraine’s infrastructure are leading to wide-scale destruction and causing inconceivable suffering every single day. Providing funding to the Ukrainian authorities to repair and maintain civilian infrastructure is a means of supporting the Ukrainian people in their fight to defend their country,’ said Minister of Foreign Affairs Anniken Huitfeldt.

Ms Huitfeldt also emphasised the need for ongoing close cooperation with the EU and other donor countries and organisations in order to ensure the best possible assistance to Ukraine.

The funds are being channelled through a new World Bank financing mechanism and will supplement the NOK 2 billion in support for the Ukrainian government administration that Norway announced in March. The World Bank mobilises up to 3 dollars in funding for every dollar provided by donor countries.

Substantial support to respond to enormous needs in Ukraine

Norway has previously provided NOK 300 million in budget support to Ukraine via the World Bank, in addition to NOK 1 billion in funding for repairs of critical infrastructure such as the power grid, roads and railways.

The World Bank was quick to provide substantial support to the Ukrainian authorities following Russia’s attack on Ukraine. So far, the World Bank has mobilised over USD 37.5 billion in funding for Ukraine. The Nansen Support Programme for Ukraine was approved by the Storting on 14 March. The multi-year support programme will provide a total of NOK 75 billion over a period of five years (2023–2027). In 2022, Norway provided approximately NOK 10.7 billion in civilian and military support to Ukraine. Roughly NOK 18.5 billion has been set aside for 2023.