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Ukraine attracts additional USD 10 million to restore healthcare sector - new grant agreement signed

7 June 2023

The Ukrainian healthcare sector will receive additional support in the amount of USD 10 million as a non-repayable grant allocated as part of further financing of the new joint project of the Ministry of Health of Ukraine with the World Bank “Health Enhancement and Lifesaving (HEAL) Ukraine”. The relevant agreement between the parties was signed today by the Minister of Health of Ukraine Viktor Liashko and the World Bank’s Regional Director for Eastern Europe Arup Banerji.

The agreement is concluded between Ukraine, the International Bank for Reconstruction and Development and the International Development Association, acting as the administrator of the Multi-Donor Trust Fund for Ukraine Relief, Recovery, Reconstruction and Reform.

“A full-scale war is going on in Ukraine. Every day our medical system is tested for resilience. Every day we have to respond to new challenges. Thanks to the support of our international partners and the selfless work of our heroic medics, we manage to hold the medical front. I am grateful to the World Bank for its reliable support. The funds under the signed agreement will be allocated to critical areas for the healthcare system: the development of physical and psychological rehabilitation, the demand for which is constantly growing in times of war, as well as restoring access to medical care in the war-affected areas. We are working together to ensure the provision of high-quality, affordable and free medical care for Ukrainians,” said Viktor Liashko, Minister of Health of Ukraine.

Expanding financial support for Ukraine’s healthcare sector in the form of a non-refundable grant is especially important for millions of Ukrainians in a time of war. Ukraine will use half of the grant funds to provide rehabilitation and mental health services, which are in high demand, and another USD 5 million will be used to restore medical services in healthcare facilities affected by the war.

In particular, this includes preparations to expand the scope of mental health and rehabilitation services: defining the scope and standards of services provided in inpatient and outpatient facilities, training staff, providing equipment and transportation, and carrying out rehabilitation work in facilities.

Why is it important? The level of mental health of the population and the prevention of mental disorders will continue to have a significant impact on the overall health, economic recovery and well-being of the country. And the trauma caused by the war has significantly increased the need for rehabilitation services, so there is an obvious need to expand access to them.

The new grant will also fund the restoration and modernization of hospital care in line with the reforms: development of sectoral planning for the hospital network, development of technical specifications and project documentation for the restoration of facilities, as well as the restoration of individual hospitals, taking into account energy efficiency and the use of alternative energy sources, and the purchase of equipment and transport.

Why is it important? Enemy attacks have destroyed or damaged at least 1,500 medical facilities. This means that more than 5% of the total number of facilities in the country are now unable to operate and provide assistance to the population, whose health has deteriorated significantly as a result of the war. Restoring hospitals will require significant financial resources and time. This is especially true for the specialized health care facilities, which continue to implement health care reforms initiated by Ukraine during the military aggression.

It should be recalled that the Ministry of Health of Ukraine and the World Bank signed a framework loan agreement of EUR 100 million and a grant agreement of USD 10 million from the Global Finance Facility on 22 December 2022. This is the initial financing of the HEAL Ukraine project, the total cost of which can be expanded to USD 500 million.

For reference: the material losses of the healthcare system amount to at least USD 1.4 billion, according to a rapid assessment of damage and losses caused by the hostilities conducted by the Government of Ukraine, the World Bank Group and the European Commission in cooperation with other partners.