USD 10 million grant agreement was signed to restore the medical sector

The Cabinet of Ministers of Ukraine has approved a draft order of the President of Ukraine to sign a grant agreement in the amount of USD 10 million to provide funding for the project “Strengthening the healthcare system and saving life” (Heal Ukraine). 

Of these, USD 5 million will be used to improve the processes of providing rehabilitation and mental health services. Another USD 5 million will be spent on restoring the provision of medical services in hospitals affected by the war.

The agreement is concluded between Ukraine, the International Bank for Reconstruction and Development, and the International Development Association, which act as the administrator of the multi-donor Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund. 

russia's long, full-scale war against Ukraine has led to the forced displacement of millions of Ukrainians, the destruction of Ukrainian infrastructure, including the healthcare system, and the disorganization of the provision of medical services to the population. The signing of the agreement will make it possible to attract financial and technical assistance in a timely manner to restore and improve public access to basic medical services, expand the range of services provided, in particular psychiatric and rehabilitation services, and improve their quality. 

The funds of the project “Strengthening the healthcare system and saving life” (Heal Ukraine) will be used for: 

• meeting new and urgent needs in the field of mental health and rehabilitation. In particular, the purchase of medical equipment and vehicles to support rehabilitation services; carrying out rehabilitation work in institutions that provide services in the field of mental health and rehabilitation, and training medical personnel of health care institutions at the inpatient and outpatient levels; 
• further improvement and strengthening of primary health care. The activities will be aimed at restoring the primary healthcare network, in particular, restoring buildings and structures of healthcare institutions damaged and destroyed by the war, developing a plan for restoring and rebuilding the network of primary healthcare institutions in Ukraine; purchasing equipment and deploying mobile teams to provide basic medical services in the regions most affected by the war, as well as in remote regions, etc.;
• restoration and modernization of hospital care in accordance with the directions of reforms. This part of the project will help restore and strengthen the provision of services in hospitals affected by war (for example, hospitals in recently de-occupied territories), or due to increased demand for their services (for example, hospitals in regions with a high number of internally displaced persons). The measures are aimed at reconstructing/repairing of hospitals, improving their energy efficiency and ensuring access to alternative energy sources, etc.;
• support for capacity building, digitalization, and innovation. The activities will be aimed at developing the electronic healthcare system and digital innovations, using telemedicine, and standardizing the quality of services. This will make healthcare services more efficient, transparent, and user-friendly. 

For reference: “Strengthening the healthcare system and saving life” (Heal Ukraine) project is a framework project with a total planned amount of funding in amount of USD 500 million. In December last year, Ukraine and the IBRD signed a loan agreement in the amount of EUR 100 million and a grant agreement in the amount of USD 10 million for the implementation of this project. Attracting additional grant funds will allow the implementation of additional project activities.