The European Bank for Reconstruction and Development (EBRD) is allocating €65 million to the Ukrainian national transmission network operator, Ukrenergo, for the construction of a 330kV Zahidna substation as well as the construction of two 330kV lines, which will connect the new substation to the grid.
The project should help Ukraine and Ukrenergo improve the security of electricity supply, increase energy efficiency, meet growing demand for power in the Ukrainian capital and tackle problems linked to power shortages and blackouts in the city of Kiev and the region.
The project cost is covered by procurement savings achieved by Ukrenergo in implementation of the Zaporizhzhia-Kakhovs’ka high-voltage transmission line project, financed by a €175 million loan from the EBRD in 2010. The savings were achieved as a result of a competitive tendering procedure, using the EBRD’s procurement rules.
The new operation is also expected to provide more flexibility to Ukrenergo in managing four existing 330kV substations in the Kiev region, which operate above their design load for significant periods of time every year.
EBRD First Vice President Phil Bennett said: “This project addresses issues of energy security and sustainable power supply for one of the most important regions of Ukraine. It also provides a perfect illustration of instant benefits, which can be achieved through the transparent public sector procurement in this country.”
The EBRD is the largest international financial investor in Ukraine. As of 1 March 2015 the Bank had a total cumulative commitment of €10.9 billion in 344 projects in the country.