Since Russia’s invasion of Ukraine in February 2022, the World Bank has collaborated with international partners to provide fast, targeted, and predictable financial support to help the Ukrainian government sustain essential public services for nearly 16 million citizens. The Public Expenditures for Administrative Capacity Endurance (PEACE) Project funds salaries for civilian government employees, teachers, health and emergency response workers, and provides transfers to internally displaced persons, low-income households, and disabled children. By supporting these critical services, the PEACE Project ensures the government continues functioning effectively and assists vulnerable populations who might otherwise fall into poverty. To date, the project has disbursed over $41 billion, with $32 billion financed by the United States.
The PEACE Project maintains rigorous accountability measures by using Ukrainian government financial management systems to consolidate and validate expenditure data from multiple government entities, schools, and health service providers operating in a complex wartime context. The Ministry of Finance collects and verifies expenditure information from relevant agencies and submits reports to the World Bank for reimbursement. The Bank carefully reviews these reports, disbursing funds only for eligible expenditures and recovering any ineligible payments.
Independent audits are a core part of the project’s oversight. The Government of Ukraine hires an external firm to conduct annual financial audits, all of which have issued clean opinions confirming the accuracy and reliability of the expenditure reports. In addition, the World Bank contracts independent audit firms to perform “Agreed Upon Procedure Reviews” to verify expenditures, assess control effectiveness, and recommend improvements. These reviews have led to enhanced digital solutions for verifying beneficiary eligibility and tracking expenditures more efficiently.
The project also prioritizes transparency and citizen engagement. A grievance redress mechanism allows individuals to report concerns, while the World Bank’s monthly Listening to Ukraine Surveys gather feedback on citizens’ experiences with services supported by PEACE. As with all World Bank-financed initiatives, any allegations of fraud or corruption are investigated by the Bank’s Integrity Vice Presidency, ensuring robust safeguards and accountability across the project.
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