OFFICIAL 9 3q-v"A DOCUMENTS 4 STATUTORY COMM'PIW"*&PORT TO: The President. International Bank for Reconstruction and Development Report of the Committee under Section 4 (iii) of Article III of the Articles of Agreement on the proposed Loan (First Development Policy Loan) to Ukraine The undersigned Committee constituted under Section 7 of Article V of the Articles of Agreement of the International Bank for Reconstruction and Development (the Bank) hereby submits its report pursuant to Section 4 (iii) of Article III of said Articles in respect of the proposal that the Bank grant to Ukraine (the Borrower) a loan in an amount of seven hundred fifty million United States Dollars ($750,000,000). The purposes of said loan are to: (i) promote good governance, transparency, and accountability in the public sector; (ii) strengthen the regulatory framework and reduce costs of doing business; and (iii) reform inefficient and inequitable utility subsidies while protecting the poor. 1. The Committee has carefully studied the merits of the proposal to grant such a loan, and of the purposes to which the proceeds of the loan are to be applied. 2. The Committee is of the opinion that the program in support of which the proceeds of such loan are to be applied comes within the purposes of the Bank as set forth in Article I of said Articles of Agreement, and that said program is designed to promote the development of the productive facilities and resources of Ukraine and is in the interest of Ukraine and of the members of the Bank as a whole. -2- UKRAINE (First Development Policy Loan) 3. Accordingly, the Committee finds that said program merits financial assistance from the Bank, and hereby recommends said program for such assistance. COMMITTEE Senior Vice President and Group General Counsel Expert Selected by Governor for Ukraine Regional Vice President Europe and Central Asia I- ~ ~* 67 4U.. J Vice President World Bank Group Chief Risk Officer Senior Vice President, Development Economics and Chief Economist Dated at Washington, D.C. ??Ny~!