World Bank approves additional $610 million in financing for Ukraine

WASHINGTON, Dec 20 (Reuters) - The World Bank on Tuesday

said it had approved an additional financing package totaling

$610 million to address urgent relief and recovery needs in

Ukraine as the war with Russia continues. The package includes an additional $500 million loan from

the World Bank's International Bank for Reconstruction and

Development (IBRD) that is supported by a guarantee from

Britain, and a new project to restore and improve access to

health care and address war-related needs for health services,

the global lender said. The aid comes on top of some $18 billion already mobilized

for Ukraine by the World Bank, of which some $15 billion has

been disbursed. "Russia's invasion of Ukraine continues to have

devastating economic and humanitarian consequences, impacting

the health sector, critical energy infrastructure, and transport

networks," World Bank Group President David Malpass said in a

statement. The additional $500 million in IBRD lending for the

Public Expenditures for Administrative Capacity Endurance

(PEACE) Project, will help the Ukrainian government cover

expenditures related to child and family benefits, salaries of

public employees, and utility payments, the World Bank said. The remaining $110 million would go to a Health

Enhancement and Life-saving (HEAL Ukraine) Project aimed at

improving and strengthening primary health care, addressing

increased demand for mental health and rehabilitation services

due to the war, and restoring services in hospitals that are

facing capacity constraints, it said. Initial funding for the project includes a 100 million

euro IBRD loan, backed by a guarantee from the Government of

Spain, and a $10 million grant from the Global Financing

Facility for Women, Children, and Adolescents (GFF). Additional funds for the project are expected to grow to

a total of $500 million, starting with an upcoming $10 million

grant through the Ukraine Relief, Recovery, Reconstruction and

Reform Trust Fund (URTF). The World Bank in October estimated the recovery costs

facing Ukraine would amount to nearly $350 billion, but

officials say the costs have soared further given Russia's

targeting of civilian infrastructure since mid-October. As of Dec. 6, 507 healthcare facilities in Ukraine -

equivalent to 5.5% of public providers - have been destroyed or

damaged, the World Bank said. It said utilization of health services also

significantly decreased during the first months of the war, with

the number of childhood vaccinations down 40% compared to the

previous year. In September, it said almost a third of people living in

Ukraine reported that they could not afford to buy necessary

medicines.

(Reporting by Andrea Shalal; Editing by Chris Reese and Paul

Simao)