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  • Cooperation with KfW

    The strategic partnership between Ukrenergo and KfW goes back a long way. Cooperation with German donors helps us implement important technical and infrastructure projects aimed at enhancing reliability of the power generation and transmission systems, the most important areas of activity of a system operation. Presently, Ukrenergo is the only company to receive a EUR 150 million loan from the German government’s tranche provided to restore infrastructure in Eastern Ukraine, and to launch the active phase of this project.

    The key purpose of the project is to enhance the level of safety, reliability and efficiency of electricity supply by rehabilitating the substations that have been in operation for a long time and whose electrical equipment is mostly past its manufacturer-guaranteed rated service life and requires annual outlays on maintaining it and keeping it in an operable condition.

    Legal agreements:

    • Agreement between the Cabinet of Ministers of Ukraine and the Government of the Federal Republic of Germany on Financial Cooperation (appropriations in 2006 and 2007) signed on 30.12.2011, ratified on 02.10.2012 (Law of Ukraine No. 5298-VI), effective since 04.12.2012.
    • Loan Agreement between the Cabinet of Ministers of Ukraine and KfW signed on 30.12.2011, effective since 04.12.2012.
    • Separate Agreement between Ukrenergo and KfW, signed on 30.12.2011.
    • Sub-loan Agreement between the Ministry of Finance, the Ministry of Energy and Coal Industry, the NEURC, and Ukrenergo No. 15010-03/77 dated 10.07.2012 (with changes and amendments dated 19.07.2019).

    Loan from the Government of the Federal Republic of Germany – EUR 40.5 million.

    Project Description:

    • Reconstruction of outdoor switchgear units of 330 kV at the SS 330 kV Kryvorizka and the SS 330 kV Dnipro–Donbas;
    • Reconstruction of outdoor switchgear units of 150 kV and lower at the SS 330/150/35 kV Kryvorizka and the SS 330/150/35 kV Dnipro-Donbas.

    Construction and installation are in progress for the reconstruction of the 330 kV outdoor switchgear units at the SS 330 kV Kryvorizka and the SS 330 kV Dnipro–Donbas;

    International competitive bidding took place as part of the reconstruction of the 150 kV outdoor switchgear unit of these substations and negotiations are underway with the successful bidder.

    The key purpose of the project is to provide the reliable and high-quality energy supply in the power grid of the eastern Ukraine, and thus facilitate the improvement of the energy efficiency of electricity transmission and facilitate the future integration of the Integrated Power System of Ukraine into the European Network of Transmission System Operators for Electricity (ENTSO-E).

    Legal agreements:

    • Memorandum of Joint Intent between the Government of Ukraine and the Government of the Federal Republic of Germany on the united financial loan in the total amount of EUR 500 million, signed on 01.04.2015 and ratified by the Verkhovna Rada on 15.07.2015.
    • Framework Agreement on granting of individual loans between the Cabinet of Ministers of Ukraine and KfW for the German united financial loan (UFK) for Ukraine signed on 01.04.2015.
    • Individual Loan Agreement between the CMU and KfW signed on 10.10.2016, effective since 25.10.2016.
    • Separate Agreement to the Individual Loan Agreement between Ukrenergo, the CMU and KfW signed on 10.10.2016;
    • Sub-loan Agreement between the Ministry of Finance, the Ministry of Energy and Coal Industry, the NEURC, and NPC Ukrenergo No. 13010-05/41 dated 21.03.2017 (with changes and amendments dated 19.07.2019).

    KfW loan amount (guaranteed by the Government of the Federal Republic of Germany): EUR 150 million.

    Project Description:

    • Rehabilitation of the SS 330 kV Kharkivska and the SS 330 kV Zaliutyne (Pivnichna PS).
    • Rehabilitation of the SS 750 KV Zaporizka (Dniprovska PS).
    • Rehabilitation of SS 750 Dniprovska (Dniprovska PS).
    • Supply of transformers for SS 330 kV Kharkivska, SS 330 kV Zaliutine, SS 750 kV Zaporizka, and SS 750 Dniprovska.

    As part of the implementation of rehabilitation contracts of the above-mentioned substations, the design (“basic design” stage) for the SS 330 kV Kharkivska, SS 330 kV Zaliutyne, 750 kV Zaporizka has been completed and the design work for the SS 750 kV Dniprovska is in progress.

    As part of the contract on the supply of transformers, the contractor performs equipment manufacturing and factory acceptance testing.