Second electricity transmission project

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.)
Maturity level
0
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State level of SPP
Implementation
Completion

General information

Description of the project

The project is aimed at ensuring: increasing the level of reliability of high-voltage substation equipment, reducing the likelihood of emergency situations in the operation of the electricity transmission system, reducing the risks of interruptions in electricity supply for the population and industry, improving conditions for increasing the efficiency of the functioning of the Unified Energy System of Ukraine by increasing the reliability of the electricity transmission system, improving the situation with reactive power compensation in networks, which will create technical conditions for closer integration of the Unified Energy System of Ukraine into the European Network of Transmission System Operators for Electricity (ENTSO-E), creating prerequisites for the effective functioning of the electricity market in Ukraine.

The purpose of the project

Main Goal:

Improving the condition of infrastructure

Description of the purpose of the project and ways to achieve it

The goal of the project is to increase the reliability of the electricity transmission system, create prerequisites for the introduction of a full-scale electricity market and its effective functioning, which will allow Ukraine to become an important and full-fledged player on the European electricity markets.

Problems and solutions resulting from project implementation

The project is aimed at ensuring:  increasing the level of reliability of high-voltage substation equipment,  reducing the probability of emergency situations in the operation of the electricity transmission system,  reducing the risks of interruptions in electricity supply for the population and industry,  improving the conditions for increasing the efficiency of the functioning of the Unified Energy System of Ukraine by increasing the reliability of the electricity transmission system,  improving the situation with reactive power compensation in networks, which will create technical conditions for closer integration of the Unified Energy System of Ukraine into the European Network of Transmission System Operators for Electricity (ENTSO-E),  creating prerequisites for the effective functioning of the electricity market in Ukraine.

Socio-economic context

Indicator

Value

Other functional

1 %

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 the electricity transmission system
1 %
2 %

Project Sustainable Development Goals

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?

Pollution prevention and control
[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?

None of the options are applicable

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Pollution prevention and control
[Response was provided in the Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

No
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Conducting an EIA is not required.
[Response was provided in the Investment Feasibility Study]

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[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]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

No consultations were held with target groups.
[Response was provided in the Investment Feasibility Study]

Have the gender risks and social impacts of the project been assessed?

None of the options are applicable

Are there management and institutional mechanisms in place to ensure gender equality?

Not provided for by the project
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
Help_PPE-2.docx
11.08.2025
16:39:26 UTC

Alternative technical solutions

Technical Solution 1

The second electricity transmission project

Technical Solution 2

Not provided

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)14'870'296'701 UAH2 UAH
For preparation1 UAH1 UAH
For implementation14'870'296'700 UAH1 UAH
Project operation and closure cost2 UAH2 UAH
For operation1 UAH1 UAH
For closing1 UAH1 UAH
Average annual costs1 UAH0 UAH
Project duration, incl.133 months2 months
Deadline for developing a FFS1 month1 month
Implementation period132 months1 month
Service life600 months1 month
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
0
To components
0

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?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
Yes

[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]

Has an analysis of available procurement options been conducted for the technical solution?
No

[Response was provided in the Preliminary Investment Feasibility Study]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Проведення міжнародних конкурсних торгів згідно вимог МБРР

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
Проведення міжнародних конкурсних торгів згідно вимог МБРР

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Не проводилось

[Response was provided in the Investment Feasibility Study]

Potential market participants
Не проводилось

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Не проводилось

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget14'870'296'703 UAH4 UAH
Project cost (preparation and implementation)14'870'296'701 UAH2 UAH
For preparation1 UAH1 UAH
For implementation14'870'296'700 UAH1 UAH
Project operation and closure cost2 UAH2 UAH
For operation1 UAH1 UAH
For closing1 UAH1 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service UnitНе проводилось
Service Unit Cost1 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds14'870'296'700 UAH0 UAH
Expected Funds14'870'296'700 UAH0 UAH

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 justification - social and gender analysis

[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]

Management rationale - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - risk management

[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?
Yes, negotiations are already underway.

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
Specialists in interaction with international financial organizations (IFOs)

[Response was provided in the Investment Feasibility Study]

Environmental experts

[Response was provided in the Investment Feasibility Study]

Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Legal consultants

[Response was provided in the Investment Feasibility Study]

Commercial experts

[Response was provided in the Investment Feasibility Study]

Economic analysts

[Response was provided in the Investment Feasibility Study]

Strategic consultants

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Social/gender consultants

[Response was provided in the Investment Feasibility Study]

Management experts / project managers

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
No

[Response was provided in the Investment Feasibility Study]

Risk assessment

Other riskDefinedUndefined

Organizational events

ResponseDefinedUndefined
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?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

None of the options are applicable

Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
18/08/2025SP-N-180825-445E294FState SPInvestment Feasibility StudyInclude--
01/10/2025SPP-N-011025-4F7B158CState SPPInvestment Feasibility StudyInclude-0