Activity of international financial donors is the driving force behind institutional changes, fight against corruption and renovation of Ukrainian legislation. The example of Ukrenergo’s cooperation with IBRD proves successful realization of foreign investments in our country. The projects we implement with IBRD’s financing are large infrastructure projects. Our common goal is to facilitate implementation of key reforms in energy sector by creating preconditions for launch and efficient functioning of a full-scale electricity market.
The main objective of the project is to increase the level of security, reliability and efficiency of electricity transmission, and to improve compensation of reactive power in the grids, thus creating technical conditions to advance the integration of the IPS of Ukraine into the European Network of Transmission System Operators (ENTSO-E) and allow Ukraine to become an important and valuable member of the European electricity markets. The project aims to support the implementation of key reforms in the energy sector by creating the prerequisites for the introduction of the full-fledged electricity market and its effective functioning.
Legal agreements :
Loan Agreement between Ukraine and the IBRD signed on 10.02.2015, 09.06.2015
Project Implementation Agreement between SE NPC Ukrenergo and IBRD signed on 10.02.2015
Loan Agreement on Clean Technology Fund of Ukraine (FCT) between Ukraine and IBRD signed on 10.02.2015, entered into force 09.06.2015
CTF-Financed Project Implementation Agreement between Ukrenergo NPC SE and IBRD, signed on 10.02.2015
IBRD and CTF loan closing date: 30 June 2020; IBRD loan repayment date: 15 July 2032; CTF loan repayment date: 15 July 2034
Total Project cost – 378.425 million USD, including:
IBRD loan – 330 million USD
10.825 million USD disbursed (0.25% – one-time fee)
Clean Technology Fund loan – 48.425 million USD
218 thousand USD disbursed (0.45% – one-time fee)
Project Description:
– Component 1: Rehabilitation of Transmission Substations:
Сomponent “Rehabilitation of transmission substations” envisages comprehensive reconstruction of 330 kV SS Novokyivska, 330 kV SS Nyvky (former Zhovtneva), 330 kV SS Zhytomyrska, 330 kV SS Cherkaska of Tsentralna PS (TsPS), and 330 kV SS Sumy, 330 kV SS Kremenchuk – Pivnichna PS (PPS), replacing outdated power equipment, replacing relay protection devices and command equipment.
The Component also includes installation of state-of-the-art equipment with remote control functions at the substations, specifically, installation of the complete SF6 gas insulated switchgear (GIS), and automation of these substations by introducing an automated process control system (APCS) to enable automatic operation of the substation.
Environmental and social management plan for the rehabilitation of 330 kV SS Kremenchuk
– Subcomponent 2.1“Implementing the programme of integrating the IPS of Ukraine into ENTSO-E”: installation and connection of reactive power compensation devices for 330 kV SS Novovolynsk , 220 kV SS Lutsk Pivdenna, 330 kV SS Kovel, 330 kV SS Shepetivka, 330 kV SS Kamianets-Podilska.
The component will be implemented in order to increase the level of security, reliability and efficiency of electricity transmission in the grids of the Integrated Power System of Ukraine (hereinafter IPS). Implementation of the component is an integral part of the programme of integration of the IPS of Ukraine into ENTSO-E. European Network of Transmission System Operators for Electricity (European Network of Transmission System Operators for Electricity).
The component “Installation of Reactive Power Compensation Devices at Substations of the Western and South-Western Regions” provides for the installation of shunt reactors with a rated capacity of 20 MVAr on 35 kV buses at the following substations: 330 kV SS Novovolynsk , 330 kV SS Kovel, 220 kV SS Lutsk-Pivdenna, 330 kV SS Shepetivka, 330 kV SS Kamianets-Podilska.
– “Smart grid” (introducing advanced technology for intelligent management of power systems and networks to optimise their operation, as well as to ensure the safety, reliability and efficiency of electricity transmission in the context of RES integration into the IPS of Ukraine).
– “Balancing Market” (introducing an IT-system and related communications to operate as the TSO in the balancing market)
– “Institutional development of Ukrenergo (introducing an information management system, audit, consultancy, staff training).
During 2017, Ukrenergo concluded contracts Subcomponent 1 and Subcomponent 2.1:
Package UE 1A
– UE/1A Lot 1: Contract «Rehabilitation of 330 kV SS «Novokyisvska» No. UE/1A/1/08-4/2870-17 signed on October 11, 2017. The Contractor is the Association: Soyuz Corporation (Ukraine) and LLP JV Soyuzkomplekt (Kazakhstan). The contract’s effective date is on 29.12.2017. The contract’s completion date is on 28.10.2020.
– UE/1A Lot 2: Contract «Rehabilitation of 330 kV SS Nyvky» (former Zhovtneva) No. UE/1A/2/08-4/3198-17 signed on November 10, 2017 .The Contractor is Cobra Instalaciones Y Servicios, S.A. (Spain). The contract’s effective date is on 23.04.2018. The contract’s completion date is on 20.02.2021.
Package UE 1B
– UE/1B Lot 1: Contract «Rehabilitation of 330 kV SS Zhytomyrska» No. UE/1B/1/08-4/2269-17 signed on 15.08.2017 . The Contractor is the Consortium: Posco Daewoo Corporation (South Korea), Hyosung Corporation (South Korea), Horos LLC (Ukraine). The contract’s effective date is on 2 April 2018. The contract’s completion date is on 30.01.2021.
– UE/1B Lot 2: Contract «Rehabilitation of 330 kV SS Cherkaska» No. UE/1B/2/08-4/2260-17 signed on 14.08.2017 . The Contractor is LLC Azenco (Azerbaijan). The contract’s effective date іs on 28.11.2017. The contract’s completion date is on 27.09.2020.
Package UE 2
– UE/2 Lot 1: Contract «Rehabilitation of 330 kV SS Sumy» No. UE/2/1/01-4/0088-17 signed on 31.01.2017. The Contractor is LLC Azenco (Azerbaijan). The contract’s effective date іs on 13.06.2017. The contract’s completion date is on 12.04.2020.
– UE/2 Lot 2: Contract «Rehabilitation of 330 kV SS Kremenchuk» No. UE/2/2/01-4/0249-17 signed on 27.02.2017. The Contractor is the Consortium: Posco Daewoo Corporation (South Korea), Hyosung Corporation (South Korea), and Horos LLC (Ukraine). The contract’s effective date іs on 12.06.2017. The contract’s completion date is on 11.04.2020.
Subcomponent 2.1. Package UE 3
Contract UE/3 “Installation and connection of reactive power compensation devices for five 220-330 kV substations” concluded with the Contractor EGEM s.r.o. (Czech Republic) through EGEM s.r.o. representative office in Ukraine and signed on October 18, 2017. The contract’s effective date іs on 12.04.2018. The contract’s completion date is on 03.10.2019.
The project envisages 6 contracts concluded during 2019 for the reconstruction of SS 330 kV Rivne, SS 220 kV Kalush, SS 330 kV Bohorodchany, SS 330 kV Ivano-Frankivsk, SS 330 KV Kovel, SS 220 kV Boryslav of the Zakhidna Power System, introduction of the balancing market, management information system, smart grids and 2 consulting services contracts.
The Project is to be completed by 2021.