Sector
Energy Sector
Stream
Creation of new, expansion, reconstruction, technical re-equipment of existing energy infrastructure facilities (high-voltage power transmission lines, substations, high-voltage equipment, etc.)
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
State level of SP
Investment Feasibility Study
Implementation
Completion
- Preparation
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
General information
Description of the project
The project was developed to replace outdated and inefficient compressor stations at gas preparation shops (GPCs) at gas processing plants (GPPs) of JSC "Ukrnafta".
The purpose of the project
Main goal:
Increasing compliance with modern standards
Secondary goal:
Increasing compliance with modern standards, Поява нових виробничих потужностей
Description of the purpose of the project and ways to achieve it
The purpose of the project is the reconstruction of compressor stations and gas preparation technological installations to:
• ensure uninterrupted performance of tasks to ensure the production, preparation and processing of hydrocarbons;
• reduce emissions of pollutants into the environment;
• increase equipment efficiency;
• reduce operating costs and repairs, downtime;
• increase the reliability of compressor and auxiliary equipment to ensure the processes of gas production and preparation.
Problems and solutions resulting from project implementation
Technological equipment that ensures gas preparation and liquefied gas production, the functioning of gas motor compressors (GMK) was manufactured about 50 years ago and has significant physical wear (corrosion, erosion, the presence of deposits, etc.). This leads to the following consequences:
• exceeding the maximum permissible standards for pollutant emissions into the atmosphere;
• inconsistency of the load of existing equipment with the design, respectively, low efficiency of units and devices;
• high costs for repairs and maintenance, which are due to the high cost of spare parts due to the specificity of components and the lack of a spare parts market;
• significant operating costs due to the high consumption of fuel gas, engine oil and water for cooling, equipment wear;
• frequent repairs and equipment downtime
Updating the equipment will allow:
• uninterrupted performance of tasks to ensure the extraction, preparation and processing of hydrocarbons;
• reduce emissions of pollutants into the environment;
• increase equipment efficiency;
• reduce operating costs and repairs, downtime;
• increase reliability of compressor and auxiliary equipment to ensure gas production and preparation processes.
Socio-economic context
Indicator
Value
Other economic
20 %
Other social
20 %
Strategic Case
Strategic feasibility of the project
Sector
Energy Sector
Subsector
Electric power industry
Stream
Creation of new, expansion, reconstruction, technical re-equipment of existing energy infrastructure facilities (high-voltage power transmission lines, substations, high-voltage equipment, etc.)
Strategic document
Energy Strategy of Ukraine until 2050
Task
Ensuring a stable, balanced model of operation of the Unified Power System of Ukraine; restoration, development and transformation of the power system, its sustainable operation;; increasing the efficiency of substations
Project objectives
Indicator
Base value
Target value
Increasing the reliability of compressor and auxiliary equipment to ensure gas production and preparation processes
0 %
40 %
Reducing emissions of pollutants into the environment
0 %
20 %
Improving equipment efficiency
0 %
25 %
Improving the quality of marketable products and increasing the recovery of target components (additional recovery/production of hydrocarbons)
0 %
15 %
Project Sustainable Development Goals
Demand for the service and its dynamics
What methodology was used to estimate demand?
Потреба населення та держави у товарному газі
Has data from external sources been used in the demand assessment?
No
Does the demand forecast take into account the latest demographic and economic forecasts?
No
Indicator
Year
Demand
Annual demand for services/infrastructure
1
18000000000 m3
Economic justification
Analysis of the project's impact on ecology and climate change
Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Is the proposed project expected to significantly harm any of the following climate or environmental objectives?
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Project sustainability and inclusivity
Identify potential gender risks of the project and indicate possible ways to overcome them:
The project may result in the forced displacement of women, men and other gender groups or loss of access to resources
[Response was provided in the Preliminary Investment Feasibility Study]
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other gender risks
[Response was provided in the Preliminary Investment Feasibility Study]
There are risks of impaired mobility or safety for women, men and other gender groups during construction/operation
[Response was provided in the Preliminary Investment Feasibility Study]
There is a risk of reduced economic opportunities for women, men and other gender groups (e.g. loss of jobs or retail outlets)
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project provide for improving women's access to services?
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Other benefits from project implementation
[Response was provided in the Preliminary Investment Feasibility Study]
Envisaged training or advanced training for women in the private sector
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to education (primary, secondary, vocational)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to safe water, food, and medical services
[Response was provided in the Preliminary Investment Feasibility Study]
Are civil society organizations representing women and vulnerable groups included in the consultation process?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Alternative technical solutions
Technical Solution 1
Summary of option evaluations
Technical Solution 2
Payment of a fine for excess emissions after the expiration of current permits (2030)
Total costs15'336'300'000 UAH0 UAH
Average annual costs5'112'000 UAH0 UAH
Project duration, incl.65 months0 months
Service life7 months0 months
Target indicatorsDefined Defined
Technical Solution Status
Active
[The technical approach was selected for further detailed analysis or implementation.]
Pending
[The project initiator has not taken any decision about this alternative technical approach.]
Commercial Justification
Supplier and contractor market assessment
Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Is the project of interest to small and medium-sized enterprises?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Will the project involve national or international suppliers and contractors?
Yes, both national and international
[Response was provided in the Preliminary Investment Feasibility Study]
Проєкт може передбачати як залучення національних так і міжнародних виконавців та підрядників
Has an analysis of available procurement options been conducted for the technical solution?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget15'336'300'000 UAH0 UAH
Capital costs15'336'300'000 UAH0 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation171'300'000 UAH0 UAH
For implementation15'165'000'000 UAH0 UAH
For operation0 UAH0 UAH
For closing0 UAH0 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Average project cost per service recipient
Service UnitN/A
Service Unit Cost0 UAH
Profitability of the project
Is the project expected to generate income?
ResponseYesNo
Availability of services
Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs
[Response was provided in the Preliminary Investment Feasibility Study]
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Public-private partnership
Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
The project does not fall under the PPP format by its nature/character
[Response was provided in the Preliminary Investment Feasibility Study]
Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Management Rationale
Team competencies
Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - communication with stakeholders
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - risk management
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - social and gender analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - public consultations
[Response was provided in the Preliminary Investment Feasibility Study]
Economic feasibility study - technical expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of available procurement options
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - SDG compliance analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Project management - working with international financial organizations (IFOs)
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - environmental expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of the market environment
[Response was provided in the Preliminary Investment Feasibility Study]
Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects
[Response was provided in the Preliminary Investment Feasibility Study]
Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic feasibility study - technical expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Формування КПД, переліку обладнання до закупівлі
Economic justification - social and gender analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic justification - forming a justification for the problem and need
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - public consultation
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of the market environment
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - environmental expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - project management
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - SDG compliance analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - communication with stakeholders
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of available procurement options
[Response was provided in the Preliminary Investment Feasibility Study]
Надаватиметься в рамках фінансування, враховуючи умови кредитування
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management justification - other
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - risk management
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic justification - analysis of the strategic feasibility of the project
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - working with international financial organizations (IFOs)
[Response was provided in the Preliminary Investment Feasibility Study]
Management justification - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options
[Response was provided in the Preliminary Investment Feasibility Study]
Risk assessment
Financial riskDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs
Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project require preparation assistance from Project Preparation Programs (PPF)?
Development of a full feasibility study;
[Response was provided in the Preliminary Investment Feasibility Study]
Finalization of existing documentation for the preparation of a preliminary feasibility study
[Response was provided in the Preliminary Investment Feasibility Study]
Development of design and estimate documentation (DED);
[Response was provided in the Preliminary Investment Feasibility Study]
Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Preliminary Investment Feasibility Study]
Updating existing documentation regarding the preparation of the feasibility study
[Response was provided in the Preliminary Investment Feasibility Study]
Other
[Response was provided in the Preliminary Investment Feasibility Study]
Need for financing
Does the project require additional funding for preparation?
No
[Response was provided in the Preliminary Investment Feasibility Study]