Kyiv, March 3, 2009. - The Government of Ukraine and the World Bank today officially launched the implementation of the UkrainePower Transmission Project. The World Bank’s Board of Executive Directors approved a US$ 200 million loan for this project in August 2007. The Loan Agreement was signed in November 2007 and ratified by the Ukrainian parliament on 29 October 2008. The main objective of the Power Transmission Project is to improve the security, reliability, efficiency and stability of electricity supply through the rehabilitation of transmission substations and the strengthening of the power transmission network. The project will also aim to improve the institutional capacity and technical capabilities of the transmission system operator, UkrEnergo (UE), so that it can assure secure and reliable operation of the high voltage power grid, and, therefore, facilitate unimpeded operation and opening up of the electricity market. This is the second project financed by the World Bank as part of a sector-wide long-term energy program, which also includes extensive technical assistance to the National Energy Regulatory Commission and the Ministry of Fuel and Energy. “The modernization of Ukraine’s energy system is a priority for the World Bank”, - says Martin Raiser, World Bank Director for Ukraine, Belarus and Moldova.– “We are happy to be launching this important project at this time to help Ukraine improve its energy efficiency, thereby mitigating the effects of the economic crisis but also alleviating constraints on long-term growth.” The Power Transmission Project comprises five key components: rehabilitation of transmission substations, strengthening of the transmission network, stabilization of the Crimea Regional Power Grid, institutional development of UE, and implementation of the Wholesale Electricity Market concept. It is expected that investments under the project will (a) reduce the amount of electricity not delivered to consumers due to network failures by 35 GWh per year; (b) reduce transmission losses and peak capacity requirements by 14MW; and (c) improve voltage quality in dozens of transmission substations across the country. “The Power Transmission Project will help improve performance of the electricity grid and create conditions for increasing electricity trade in the domestic and international markets.” says Dejan Ostojic, Project Team Leader. “As such, it will help Ukraine utilize its existing energy resources more efficiently, contributing to savings of US$ 38 million per year, and help lay the foundation for Ukraine’s integration into the European Energy Community.” |
RSS