Technical re-equipment of substation No. 23 ZRU-6kV, VRU-35kV at PrJSC "Northern Mining and Processing Plant"


Sector
Municipal infrastructure and services
Stream
Improving energy efficiency in public buildings
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SP
Implementation
Completion

General information

Description of the project

The project involves the technical re-equipment of substation No. 23 ZRU-6kV, VRU-35kV, located on the territory of PrJSC "Northern Mining and Processing Plant", with the replacement of outdated electrical equipment with modern and energy-efficient ones. In particular, it is planned to replace oil circuit breakers with vacuum ones, replace disconnectors, modernize relay protection and automation systems, update measuring equipment, insulation and cable lines of operational circuits. The substation provides power supply to infrastructure facilities of the Ternivskyi district of the city of Kryvyi Rih, in particular water supply and wastewater enterprises, electric transport and energy infrastructure facilities. At the same time, a significant part of the equipment is morally and technically obsolete, which increases the risks of emergency shutdowns and threatens the continuity of the provision of vital services. The implementation of the project is aimed at increasing the reliability of electricity supply to category I consumers, reducing the accident rate, ensuring stable operation of critical infrastructure, and increasing the energy sustainability of the community in conditions of increased loads and external challenges. As a result of the project, uninterrupted electricity supply to key city services will be ensured, the safety and quality of life of residents will be improved, and the prerequisites for the stable functioning of the city's life support systems will be created.

The purpose of the project

Main Goal:

Introducing innovations and energy-efficient solutions

Secondary Goal:

Contribution to climate or environmental goals, Increasing compliance with modern standards, Improving the equality of wealth distribution, Increasing the even distribution of resources, Improving the condition of infrastructure, Improving the quality of services

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

The project aims to introduce innovative and energy-efficient solutions in the power supply system through technical re-equipment of substation No. 23 ZRU-6kV, VRU-35kV, which ensures the functioning of infrastructure facilities in the Ternivskyi district of the city of Kryvyi Rih. Today, the substation equipment is in working condition, but a significant part of it is morally and physically outdated, in particular, oil circuit breakers are used, which have increased operational risks, significant maintenance costs and a lower level of reliability compared to modern technologies. The lack of redundancy at the substation level and the high level of dependence of critical facilities on its stable operation create a systemic risk of emergency shutdowns, which can lead to the shutdown of water supply and drainage, electric transport and energy infrastructure facilities. Thus, there is a significant gap between the current state of the energy infrastructure and the required level of reliability, safety, energy efficiency and compliance with modern technical standards required to ensure the sustainable functioning of the city economy. The project goal is expected to be achieved by:  replacing outdated 6 and 35 kV oil circuit breakers with modern 6 and 35 kV vacuum circuit breakers;  replacing 35 kV disconnectors;  upgrading relay protection and automation systems with the introduction of modern digital solutions;  upgrading current and voltage transformers, insulation equipment;  replacing cable lines of operational circuits;  increasing the level of dispatching and control of energy processes. The implementation of these measures will allow achieving the target level of substation operation that meets modern standards of reliability and safety, reduce technological losses of electricity, increase energy efficiency and ensure stable electricity supply to category I consumers. As a result, the quality and continuity of vital services will be improved, the state of engineering infrastructure will be improved, electricity resources will be distributed more evenly among consumers, and a contribution to climate goals will be achieved through the introduction of more energy-efficient equipment.

Problems and solutions resulting from project implementation

The key problem is the use of obsolete equipment, which reduces the reliability of power supply. In particular, the operation of outdated oil circuit breakers, disconnectors, disconnectors, limited capabilities of relay protection and automation systems, as well as wear and tear of auxiliary equipment reduce the overall level of reliability of power supply. The problem is especially relevant given that the substation serves consumers of reliability category I, in particular, water supply and sewage facilities, electric transport and energy infrastructure facilities, the stable operation of which is critically important for ensuring the life of the community. An additional risk factor is the lack of backup power at the substation level, which creates the dependence of a significant part of the city's infrastructure on a single energy node. If these problems are not resolved, there is a high probability of an increase in accidents, which can lead to large-scale power outages. The consequences of such outages may be disruption of the operation of electric transport enterprises and energy infrastructure facilities, as a result, a significant deterioration in the living conditions of the population. The implementation of the project will allow to eliminate the mentioned problems by replacing outdated equipment with modern ones, implementing innovative technical solutions and increasing the level of automation and controllability of the substation. As a result, it will ensure increased reliability of power supply, reduced accident rates, stable operation of critical infrastructure facilities and continuity of basic services to the population. In addition, it is expected to improve the energy efficiency of the substation, reduce operating costs, increase the level of compliance with modern technical standards, as well as strengthen the overall energy sustainability of the community in conditions of increased loads and external challenges. As a result, the implementation of the project will ensure qualitative changes in the functioning of the city's life support systems, increase the level of security and improve the quality of life of residents of the Terni district.

Socio-economic context

Indicator

Value

Number of IDP users

7 thous. people

Number of people who will use the service

75 thous. people

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Urban planning and landscaping

Stream

Improving energy efficiency in public buildings

Strategic document

Стратегія розвитку територіальної громади

Task

2.5.1; 2.5.3 Increasing the share of alternative sources in the energy balance and improving energy sustainability; Implementing an effective system of municipal energy management and energy monitoring

Project objectives

Indicator
Base value
Target value
Technical re-equipment of the power supply substation
0 units
1 units

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Оцінка попиту здійснювалася на основі аналізу фактичного електроспоживання підключених до підстанції об’єктів критичної інфраструктури та житлового сектору, з урахуванням їх функціонального навантаження та категорії надійності електропостачання. Методологія базується на поєднанні ретроспективного аналізу (фактичні обсяги споживання електроенергії за попередній період) та нормативного підходу (врахування вимог до безперервності електропостачання споживачів І категорії), а також сценарного прогнозування з урахуванням можливого зростання навантаження на інфраструктуру.
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

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

Does the demand forecast take into account the latest demographic and economic forecasts?

Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
75 thous. people
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]
Sustainable use and protection of water and marine resources
[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?

None of the options are applicable

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?

The project will create jobs available to women (temporarily or permanently)
[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]

Documents

Name
Date
JUSTIFICATION OF SELECTED SOURCES AND FINANCING MECHANISMS 9. pre-feasibility study PS№23_PIVNGZK – copy.docx
30.03.2026
10:34:03 UTC

Alternative technical solutions

Technical Solution 1

Technical re-equipment of substation No. 23 ZRU-6kV, VRU-35kV

Technical Solution 2

New construction of an electrical substation to ensure power supply to facilities in the Ternivskyi district of the city of Kryvyi Rih

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)7'405'000 UAH16'210'000 UAH
For preparation105'000 UAH210'000 UAH
For implementation7'300'000 UAH16'000'000 UAH
Project operation and closure cost630'000 UAH1'300'000 UAH
For operation630'000 UAH1'300'000 UAH
Average annual costs32'000 UAH0 UAH
Project duration, incl.12 months24 months
Deadline for developing a FFS6 months12 months
Implementation period6 months12 months
Service life240 months300 months
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?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget8'035'000 UAH17'510'000 UAH
Project cost (preparation and implementation)7'405'000 UAH16'210'000 UAH
For preparation105'000 UAH210'000 UAH
For implementation7'300'000 UAH16'000'000 UAH
Project operation and closure cost630'000 UAH1'300'000 UAH
For operation630'000 UAH1'300'000 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]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service Unitелектропостачання
Service Unit Cost108 UAH

Profitability of the project

Is the project expected to generate income?NoNo

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 Funds0 UAH0 UAH
Expected Funds0 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
None of the options are applicable
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]

Risk assessment

Technical riskDefinedUndefined
Economic riskDefinedUndefined
Social riskDefinedUndefined
Operational riskDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

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

None of the options are applicable

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
31/03/2026SP-L-310326-974DB8EECommunity SPInvestment Feasibility StudyInclude--