Increasing the stability and reliability of electricity transmission in Ukraine

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

General information

Description of the project

The project will include:

  • development of design documentation in accordance with current Ukrainian norms and standards;
  • construction of underground RPA devices at 16 substations, including those necessary for the substation's own needs;
  • supply of new RPA devices;
  • construction of underground cable ducts; installation and commissioning of the specified devices in new protected underground structures;
  • construction of a backup dispatch center;
  • (in case of availability of financing after other purchases) – purchase of transformer equipment and high-voltage external substations for use as a reserve stock. 

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 purpose of the project is to provide protection against hits by fragments of missiles, shells and in the event of a direct hit by a powerful charge (aircraft bomb, rocket, etc.) of critical elements of substations, the loss of which is equivalent to the loss of autotransformers - general substation control points (GCP) and relay panel buildings (RPB), which is planned to be implemented by constructing protected underground GCPs and RPCs with the replacement of outdated relay protection equipment and the implementation of automated process control systems (APCS) at substations at 16 substations and the construction of a backup dispatch center of the Unified State Electric Power System of Ukraine in a protected version.

Problems and solutions resulting from project implementation

NPC Ukrenergo has identified critical substations, the premises of relay panels and control points of which were damaged by attacks and require urgent restoration and protection. Due to the high risk of direct hits by missiles, drones or damage by blast waves to control panels located in above-ground buildings, the duty personnel of substations during an air alarm must urgently evacuate, and upon its completion, inspect the substation territory, which limits the controllability of the substation for a fairly long period. If the control panels are damaged, the controllability of the substation is lost. The free location of transformer equipment in an open space makes it vulnerable not only to direct hits, but also to shrapnel damage, which leads to the destruction of the mounted elements, leakage of transformer oil and an increased risk of its ignition. In turn, relay protection and emergency automation devices (P3A), AC and DC switchboards, and batteries located in above-ground buildings are easily damaged by building tremors. To achieve this goal, HEK "Ukrenergo" has launched a comprehensive substation automation program, which provides for their phased reconstruction with the construction of protective structures for autotransformers, protected underground 3PK and buried BRP with the introduction of automated process control systems (ACKTP) at substations.

Socio-economic context

Indicator

Value

Other economic

10017 thous. UAH

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
To construct underground protected buildings with the implementation of ASKTP at substations of NPC "Ukrenergo"
16 units
16 units

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?

None of the options are applicable

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

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

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

None of the options are applicable

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?

None of the options are applicable

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?

None of the options are applicable

Documents

Name
Date
Investment_Form_Improving the Stability and Reliability of Electricity Transmission in Ukraine.pdf
18.02.2026
19:20:20 UTC
Calculation of economic effect.pdf
18.02.2026
19:20:20 UTC

Alternative technical solutions

Technical Solution 1

Construction of protected substations and substation control systems, supply and installation of relay protection and automation devices at 16 selected substations, construction of a new backup dispatch center

Technical Solution 2

not provided

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)14'174'070'000 UAH2 UAH
For preparation102'320'000 UAH1 UAH
For implementation14'071'750'000 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.34 months2 months
Deadline for developing a FFS16 months1 month
Implementation period18 months1 month
Service life480 months1 month
Target indicatorsDefined Not 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.]

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?
Yes

[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?
Проектна документація для частини А та частини Б має бути закуплена за допомогою лімітованих національних торгів. Точні правила мають бути встановлені разом з KfW, який надає грант для цієї діяльності. Для Частини А - Підрядник EPC для релейних засобів захисту (будівництво та обладнання) буде обраний в рамках міжнародного конкурсу з обмеженою процедурою (з попередньою кваліфікацією) на основі оцінки досвіду роботи з українськими технічними стандартами. Для Частини Б - Підрядник EPC буде обраний шляхом переговорів з обмеженою кількістю потенційних підрядників («пряме укладення договору») через чутливий характер об'єкта, що будується. Постачальники додаткового високовольтного та трансформаторного обладнання (опціонально у разі економії коштів після закупівлі за частинами А та Б) можуть бути обрані шляхом міжнародного конкурсу з відкритою процедурою.

[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?
принципи Європейського інвестиційного банку

[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
was not conducted

[Response was provided in the Investment Feasibility Study]

Potential market participants
консультації не проводились

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
ринок готовий до реалізації проекту

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget14'174'070'002 UAH4 UAH
Project cost (preparation and implementation)14'174'070'000 UAH2 UAH
For preparation102'320'000 UAH1 UAH
For implementation14'071'750'000 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 передбачено
Service Unit Cost1 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?Yes
Has the financial condition of the potential beneficiary been assessed in accordance with the order of the Ministry of Finance of Ukraine dated 14.07.2016 No. 616?No
NPV Value1'640'700'000 UAH

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

Funding Sources

Approved Funds102'340'000 UAH0 UAH
Expected Funds14'276'410'000 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.

[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]

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]

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]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[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]

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]

Is the project management structure defined: working group, chair, project team?
No

[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?
Yes

[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
19/02/2026SP-N-190226-C1F7169EState SPInvestment Feasibility StudyInclude--
11/03/2026SPP-N-110326-A94ECB5FState SPPInvestment Feasibility StudyNot approvedAccording to the results of expert assessment-