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Tuesday, June 24, 2025

Ukraine Receives $190M Loan from WB, Japan for Infrastructure Recovery

Kyiv (TDI): Ukraine has received a $190 million loan under the DRIVE (Delivering Resilient Infrastructure in Vulnerable Environments) project, facilitated through a partnership between the World Bank and the Government of Japan.

The financing is intended to support the reconstruction and modernization of Ukraine’s transportation infrastructure amid the ongoing full-scale war.

The loan was issued by the International Bank for Reconstruction and Development (IBRD) and is backed by a guarantee from the Government of Japan.

According to official statements, the funding will be directed toward modernizing national road systems, repairing and restoring bridges, improving transportation logistics, and enhancing resilience within the road sector.

Speaking on the occasion, Prime Minister Denys Shmyhal stated that the DRIVE project is intended to develop infrastructure that can endure ongoing conflict conditions. He noted: “The goal is to create sustainable infrastructure under challenging conditions.”

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The project includes provisions for both physical infrastructure upgrades—such as roads and modular bridges—as well as institutional and technical support, including project management and engineering assistance aligned with international standards.

Shmyhal acknowledged the contribution of international partners, stating: “Grateful to partners – both the World Bank and the Government of Japan – for consistent support of Ukraine in the conditions of a full-scale war.”

The DRIVE initiative is part of a broader recovery framework. Since the beginning of the war in February 2022, the World Bank has mobilized over $77 billion in funding for Ukraine from various international contributors.

The current DRIVE loan contributes to the ongoing reconstruction efforts and is expected to support capital repairs across 19 regions.

Launched in March 2025, the DRIVE project operates under the Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund (URTF). The URTF was established to facilitate targeted support for Ukraine’s long-term infrastructure resilience and recovery planning.

According to project documentation, the funding aims to address immediate infrastructure needs while laying the groundwork for future rebuilding efforts, particularly in areas most affected by the conflict.

Ukraine
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Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.

Areeba Kanwal
Areeba Kanwal
Areeba Kanwal is a contributor at The Diplomatic Insight and has passion for International Relations and diplomacy.

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