"Emergency project of providing inclusive support for the recovery of agriculture in Ukraine" (ARISE)

The project supports the Government of Ukraine in strengthening the inclusive recovery of agriculture. The project is aimed at solving the problems faced by the agricultural sector of Ukraine after the Russian invasion of Ukraine: supporting inclusive agricultural production and ensuring an immediate and effective response to an acute crisis or emergency. Solving these problems will determine not only the future of agriculture and food security in Ukraine, but will also significantly affect the future prospects of global food security and nutrition security over the next few years. The project will ensure national food security, stimulate economic growth, and contribute to global food security over the next few years.

The project plays an important role in the recovery and development of agriculture in Ukraine by providing access to financing for all agricultural producers through a credit program, as well as providing assistance to small agricultural producers through grants for agricultural production owned and/or used by 1 to 120 ha of agricultural land, or own from 3 to 100 head of cattle (cows), or own breeding goats or sheep in the number of 5 to 500 identified and registered in accordance with the current legislation of Ukraine.

Measures within the framework of the Project will be implemented at the expense of initial funding:

− USD 230 million loan from IBRD (backed by a guarantee from the Government of Japan through the new Lending Support Trust Fund)

−  320 million USD grant (from the Multi-Donor Trust Fund for Support, Restoration, Reconstruction and Reform of Ukraine (URTF) and the Government of Japan).

In general, the framework cost of the project is 700 million US dollars.

The project consists of 4 components (Ministry of Agricultural Policy is responsible for components 2 and 3 (b), Entrepreneurship Development Fund - for components 1 and 3 (a), component 4 - not activated):

1. supporting agricultural producers' access to financing through available credits (Component 1, total budget − USD 500 million);
2.             improving access of small agricultural producers to financing through grants (Component 2, total budget − USD 199.2 million, available – USD 94.2 million);
3.            emergency response (Component $3.0 million, but can be activated in the event of an emergency);
4.            project management (Component 4, $0.8 million).

At the same time, the Ministry of Agrarian Policy was informed about the entry into force of the letter on the first changes from 03.07.2024 to the Grant Agreement of the Multi-Donor Trust Fund for Assistance, Reconstruction, Reconstruction and Reform of Ukraine (Emergency Project for Provision of Inclusive Support for the Restoration of the Agriculture of Ukraine (ARISE) between Ukraine and the International Bank reconstruction and development and the International Development Association (acting as the administrator of the Multidonor Trust Fund for Aid, Reconstruction, Reconstruction and Reform of Ukraine) dated 07.11.2023 No. TF 0C2986), which envisages attracting additional funding in the amount of 45 million US dollars for the implementation of Component 2 of the Project.