Ukrenergo Transmission Network Emergency Restoration



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

23 Nov 2022



PSD disclosed:

24 Nov 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of up to EUR 300 million sovereign-guaranteed loan to the National Energy Company Ukrenergo ("Ukrenergo" or the "Company") aimed at restoring the Ukrainian power transmission grid that was severely damaged by Russian bombings. The loan consists of up to EUR 150m for procurement of equipment to implement emergency repairs of Ukrainian power transmission system and up to EUR 150m of capital structure support (the "Project"). The EBRD loan is supported by the donor "funded guarantee" of up to 50% to be provided by the United States through its contribution to the EBRD Crisis Response Special Fund (the "Crisis Fund"). Furthermore, the loan is also going to be complemented by an investment grant of up to EUR 72m to be provided by the Netherlands via the Crisis Fund.

Project Objectives

The Project is strategically important, especially during the upcoming winter season, since it will enable the Company to secure energy supply to population and businesses throughout the country and ensure the stability of the country's energy system. The Project will also strengthen the Ukrainian power system's ability to maintain commercial flows with ENTSO-E.

Transition Impact

ETI score: 70

The Project aims to support the resilienceof the Company and its operations as well as to improve energy security by providing emergency financial support to Ukrenergo (Resilient). The Project will also preserve and enhance human capital by safeguarding access to electricity for households and businesses affected by the war. Moreover, the Company will engage on strategic workforce management activities to address its skill-related needs in line with the evolving crisis by identifying crisis management skill gaps and putting in place essential support to management and affected workers (Inclusive). In addition, Ukrenergo will update its Gender Action Plan in light of the war and launch an outreach campaign promoting access to career opportunities for internally displaced young women, which will help filling workforce gaps within its own staff and across the vital energy industry (Gender SMART). Part of the capital structure support tranche will be also channelled towards payments to renewables.

Client Information


National Energy Company Ukrenergo is a 100% state-owned company, a natural monopoly and the sole electricity transmission system operator (TSO) of Ukraine.

EBRD Finance Summary

EUR 300,000,000.00

Total Project Cost

EUR 372,000,000.00


EBRD is offering financing, which is not available in the market due to the ongoing war and high level of risk and uncertainty in Ukraine. Additional investment grant funding of up to EUR 72 million provided by the Netherlands for the purpose of the Project will be blended with the loan, enhancing Project's additionality. The loan will also benefit from the "donor funded" guarantee provided by the United States through the Crisis Fund to cover 50% of exposure, where local commercial financiers cannot provide such risk-sharing mechanism. EBRD funding and application of Bank's PPR will ensure wider market outreach, particularly in the current high-risk environment.

Environmental and Social Summary

Category B (ESP 2019). The Bank's use of proceeds will be applied to finance equipment deliveries and provide capital structure support for the Company to pay its OPEX and pay amount due to renewables, procure electricity to perform its balancing function and cover technical losses. The ongoing war limits the ability for the Bank to carry out its environmental and social due diligence (ESDD) and project implementation and monitoring. Therefore a derogation to the Bank's Environmental and Social Policy, due to the limited possibility to do ESDD, has been applied for and granted by the Board.


Overall, the Bank has good experience with Ukrenergo, and the Company has been implementing, to the satisfaction of the Bank, environmental and social undertakings agreed under previous financing agreements (including existing ESAP). As part of the current loan the Bank undertook a desk based due diligence using questionnaires and past monitoring reports. Based on this the Bank updated the existing ESAP to take account of new EU regulatory requirements (such as Sustainability Reporting under CSRD, which will include climate risk disclosures). All newly procured equipment using the Bank's proceeds will be EU compliant and environmental, health and Safety (EHS) issues will be considered in all operations of the Company and the planned investment. An independent E&S audit will be undertaken of the Project and corporate ESG management once hostilities stop and it is possible to do so in 2023. Based on this audit the ESAP will be updated in 2023-2024.

Technical Cooperation and Grant Financing

TC 1: Pre-Shipment Testing and Validation to support Ukrenergo in engaging a specialised company(ies) to carry out testing and inspection of "second-hand" equipment sourced from neighbouring/regional TSOs.


TC 2: Human capital emergency response TC support under the Gender & Economic Inclusion Technical Assistance Framework to support Ukrenergo on a series of strategic workforce management activities, develop needed re-skilling and up-skilling programmes and strengthen its Gender Action Plan.


TC 3: ENTSO-E Synchronisation Advisory Support to Ukrenergo in completing the synchronisation of the power system of continental Europe.

Company Contact Information

Olha Pershyna
+380 (93) 079 9546
Symona Petlyury St, 25, Kyiv, 01032

Implementation summary

PSD last updated

24 Nov 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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