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  • NEURC approves Ukrenergo’s 2019 investment programme

    NEURC approved the Ukrenergo investment programme for 2019 in the amount of UAH3.309 billion, according to the decision made at the meeting of the Regulator on March 29, 2019.

    The programme is financed from the company’s own funds (profit, depreciation, other income, unused funds from 2018), amounting to UAH 1.306 billion, loans – UAH 1.942 billion, revenue from capacity allocation of interstate power grids – UAH 0.06 billion. Overall, Ukrenergo’s 2019 investment programme is 15% more, compared to 2018.

    The main projects of Ukrenergo’s investment programme for 2019 are:

    • construction of 500 kV Kreminska SS with access lines of 500 kV Donbas-Donska PL and 220 kV Kreminskaya- Yuvaline PL in the Luhansk oblast;
    • rehabilitation and automation of substations;
    • construction of 330 kV Zakhidnoukrainska – Bogorodchany PL with reconstruction of 330 kV Bohorodchany SS and 750 kV Zakhidnoukrainska SS;
    • procurement and installation of the software for a new electricity market;
    • rehabilitation of open switchgear and 750 kV, 330 kV, 220, 110 kV transmission lines.

    Total financing of new construction in 2019 amounts to 1.0 billion UAH, reconstruction and technical re-equipment of substations – 1.57 billion UAH, power transmission lines – 0.07 billion UAH, relay protection devices and automation – 0.06 billion UAH, dispatch control devices – 0.16 billion USD, software – 0.28 billion USD etc.

    “Ukrenergo fully supports the version of the investment programme, approved by NEURC. At the same time, at the end of the first half of the year, we plan to submit amendments to the programme for the Commission’s consideration. This is due to the fact that in the near future we hope to resolve the issue with disbursements from the World Bank loan, namely, MECI’s blocking of the contractual payments for the purchase of software for the Market platform Management System. After March 20, the government approved amendments to its resolution of January 27, 2016 No. 70, which permits appointing a responsible  officer for the project funded by an international financial institution, directly to the beneficiary company. As soon as this is done, the payments are unblocked, and we will be able to make disbursements for this loan under the new procedure,”  said Vsevolod Kovalchuk, Ukrenergo CEO.

    The level of execution of Ukrenergo investment programme in 2018 was 96%. Financing of reconstruction and construction projects amounted to UAH 2.8 billion, disbursements made UAH 2.7 billion, and the new facilities amounting to UAH 1.9 billion were commissioned. This is the highest index of investment programme implementation in recent years Ukrenergo breached the issue of the no-approval on payment for services provided by the developer of the MMS platform by the Ministry of Energy and Coal Industry. The debt to software developers is about $2 million.

    In this regard, Ukrenergo optimised the work schedule  to implement the sufficient functionality of the MMS by July 1 in the conditions of long delay in financing the project.


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