On September 6, 2017, in Kyiv, two Financing Agreements were signed between State Enterprise ‘’NPC “Ukrenergo” and German Development Bank KfW (Frankfurt am Main, Germany) with a view to provide grant funds for the financing of consultancy services for the projects implemented jointly with KfW.
Grant funds are assigned from the Special Fund (Studien- und Beratungsfonds) of the German Federal Ministry for Economic Cooperation and Development (BMZ) via KfW to finance the consultants to be selected and contracted by NPC “Ukrenergo”.
In particular, one of the Agreements provides for the financing of the support and monitoring services for the implementation of ongoing project “Rehabilitation of Substations in the eastern part of Ukraine”.
Another Agreement is to cover the services for the preparation, support and monitoring of the implementation of the new project “Increasing Efficiency of Electricity Transmission (Rehabilitation of Substations) II”.
The implementation of the said projects is aimed at modernizing the equipment of substations, increasing energy efficiency by reducing technological losses in the networks, ensuring the reliability of the operation of the main power grids and the energy supply of consumers.
On behalf of the State Enterprise “NPC ‘’Ukrenergo” the Financing Agreements were signed by Director for Investments and Strategy Mr. Volodymyr Kudrytskyi. On behalf of KfW – by Regional Manager for Eastern Europe, Caucasus and Central Asia Mr. Michael Evers and Senior Project Manager Mr. Ingo Baum. The German delegation included also First Secretary of the Economic Department of the German Embassy in Ukraine Mr. Sebastian Knoke, and Director of KfW Office in Ukraine Mr. Lutz Horn-Haacke, who also discussed with the Ukrainian side the issues of further cooperation.
The Agreements signed in the course of the meeting in accordance with KfW requirements provide for the selection on the basis of an open tender of one of the best European companies, which will administer the implementation of the projects on behalf of State Enterprise “NPC ‘’Ukrenergo”.
For the first time, with the involvement of the consultant, Ukrenergo will apply the FIDIC Yellow Book standards*, which take into account the features of the national legislation, the specifics of each facility, and the use of a multi-stage system of means for ensuring a high-tech level of execution of work with the observance of certain terms. “The work on basis of FIDIC model contracts indicates that our facilities at the technological level will meet the world’s quality standards. It is also one of the elements of the company’s new investment policy to improve organizational approaches regarding construction,” said Volodymyr Kudrytskyi, Director for Investments and Strategy.
The implementation of substation modernization projects is provided for by bilateral agreements on Financial Cooperation between the Government of Ukraine and the Government of the Federal Republic of Germany. Implementing these measures is one of the key tasks of the Government of Ukraine and the State Enterprise “NPC “Ukrenergo”.
“One of the projects – a project on increasing efficiency of electricity transmission – will become a pilot in the area of full automation of 9 substations in the South-Western region with funding from KfW,” said Volodymyr Kudrytskyi, Director for Investments and Strategy, during a meeting. – “Such a level of complex modernization of substations will be one of the real steps made by Ukrenergo under the implementation of the Catalog of Measures for the integration of the United Energy System of Ukraine into the European network of system operators ENTSO-E”, – underlined Volodymyr Kudrytskyi.
* FIDIC Yellow Book – contracts of the International Federation of Consulting Engineers, which are used in international practice in the supply and installation of electrical equipment, project development, construction and engineering work.
The project “Rehabilitation of Substations in the eastern part of Ukraine”, financed by KfW loan in the amount of EUR 150 million and secured by the German Untied Financial Loan Guarantee (UFK) for Ukraine, provides for the reconstruction with the implementation of an automated control system for technological processes of substations at 4 transformer substations as follows:
– Substations 750 kV Zaporizhska (Zaporizhzhia region) and 750 kV Dniprovska (Dnipropetrovsk region) of the Dnipro power grid;
– Substations 330 kV Kharkivska (formerly Artema) and 330 kV Zalyutino (Kharkiv region) of the Northern power grid.
The project “Increasing Efficiency of Electricity Transmission (Rehabilitation of Substations) II”, with the financing from loan of the Government of Germany via KfW in the amount of EUR 32.5 million, provides for the rehabilitation of all 9 substations of South-Western power grid with the automation of the technological process control systems and shall emcompass:
– 750 kV substation “Vinnytska”, 330 kV substations “Vinnytska”, “Bar” and “Kozyatyn” in the Vinnytsia region;
– 330 kV substations “Kamyanets-Podilska”, “Khmelnytska” and “Shepetivka” in Khmelnytsky region;
– 330 kV substations “Chernivetska” and “Ternopilska” in accordingly Chernivtsi and Ternopil regions.
The main objective of these projects is to improve the efficiency and reliability of electricity transmission through Ukrenergo’s backbone networks by modernizing the equipment of high-voltage substations.