The World Bank conducted monitoring of its investment project portfolio in Ukraine, including Second power transmission project (PTP-2), implemented jointly with Ukrenergo and financed through the Bank loan and the Clean Technology Fund (CTF). Such monitoring is carried out twice a year to control the implementation of projects, identify potential risk areas and eliminate them. Preliminary consideration of PTP-2’s implementation status was in September 2018.
Ukrenergo’s power transmission project envisages the reconstruction of six substations in the central and northern regions, installation of compensating devices of reactive capacity for 220-330 kV substations, developing IT systems for creation and functioning of segments in the new electricity market, introduction of smart grid technology and demand management (V2G), and consulting services.
It should be noted that Ukrenergo initiated certain changes to the map of the project. In particular, 108 million USD, saved during international competitive bidding, are redistributed to include in the project the automation of 15 more substations in the Central, Western and Northern power systems. The World Bank had given a preliminary approval to use the savings for these needs.
Additional research is also envisaged as part of the project into the dynamic and static stability of Ukraine’s power system. The World Bank’s review noted significant progress in the implementation of all components of PEP-2. A key indicator of the implementation of the project phases, according to World Bank experts, is the level of utilisation of loan funding. Over the period of the project implementation, 29.66 million USD of loan funds was disbursed. For 2019, the project plans a disbursement of about 100 million USD.
The World Bank focused in particular on the problems of non-payment and restructuring under the project, which arose in late 2018 – early 2019 when the Ministry of Energy and Coal Industry of Ukraine (MECI) ceased its coordinating function. The Project’s total cost is 378.425 million USD, including a 330 million USD loan from IBRD and a 48.425 million USD CTF loan.