The World Bank Report No: ISR14900 Implementation Status & Results Ukraine Power Transmission Project in Support of the Energy Sector Reform & Development Program (P096207) Public Disclosure Copy Operation Name: Power Transmission Project in Support of the Energy Sector Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 22-Jun-2014 Reform & Development Program (P096207) Country: Ukraine Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): National Power Company UkrEnergo Key Dates Board Approval Date 02-Aug-2007 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date Last Archived ISR Date 26-Dec-2013 Effectiveness Date 05-Dec-2008 Revised Closing Date 31-Dec-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall program objective is to improve the security, reliability and quality of energy supply, and, therefore, facilitateunimpeded operation of the energy market, both domestically and internationally. The main objective of the Power TransmissionProject is to improve the security, reliability and quality of power supply through the rehabilitation of transmission substationsand the strengthening of the power transmission network. The project will also aim to improve institutional capacity and technicalcapabilities of transmission system operator, UkrEnergo (UE), so that it can assure secure and reliable operation of the highvoltage power grid, and, therefore, facilitate unimpeded operation and opening up of the electricity market. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A1. Rehabilitation of HV substations (Dnieper Electric Power Grid) 38.00 A2. Rehabilitation of HV substations (Donbas Electric Power Grid) 21.00 A3. Rehabilitation of 750 kV substations 77.10 Public Disclosure Copy B. Strengthening of transmission network 28.50 C. Stabilization of Crimea Electric Power Grid 14.00 D1. UE Institutional Development Management Information System 0.45 D2. UE Institutional Development Technical Assistance 4.45 E. Implementation of Grid Code 0.00 Overall Ratings Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Page 1 of 8 The World Bank Report No: ISR14900 Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Public Disclosure Copy Implementation Status Overview During the fourth quarter of 2013 and the first quarter of 2014, implementation has experienced significant delays, which will have negative consequences in meeting the development objectives. Thus far, the project has: completed works on construction of the Dnister-Bar Transmission Line; finished rehabilitation and extension of the Bar Substation; and upgraded substation controls in the Crimea. Works on the rehabilitation of six other large 330kV substations are ongoing but there is a risk of not completing by the end of 2014 due to the situation in Crimea and overall in Ukraine. Locations Country First Administrative Division Location Planned Actual Ukraine Not Entered Zhidachov Ukraine Not Entered Vinnytsya Not Entered Not Entered Vinnytsya ✔ Ukraine Not Entered Simferopol'skii Raion Ukraine Not Entered Simferopol' Not Entered Not Entered Simferopol' ✔ Ukraine Not Entered Sevastopol' Not Entered Not Entered Sevastopol' ✔ Ukraine Not Entered Romny Ukraine Not Entered Radushnoye Ukraine Not Entered Nakhimovskiy Rayon Public Disclosure Copy Ukraine Not Entered Murovanokurilovetskiy Rayon Ukraine Not Entered Mogilev-Podol'skiy Rayon Ukraine Not Entered Mariupol' Ukraine Not Entered Makiyivka Ukraine Not Entered Kiev Not Entered Not Entered Kiev ✔ Page 2 of 8 The World Bank Report No: ISR14900 Country First Administrative Division Location Planned Actual Ukraine Not Entered Kryvyy Rih Public Disclosure Copy Not Entered Not Entered Kryvyy Rih ✔ Ukraine Not Entered Krynychky Ukraine Not Entered Khon'kovtsy Ukraine Not Entered Feodosiya Ukraine Not Entered Dzhankoy Ukraine Not Entered Dniprodzerzhyns'k Not Entered Not Entered Dniprodzerzhyns'k ✔ Ukraine Not Entered Barskiy Rayon Ukraine Not Entered Bar Not Entered Not Entered Bar ✔ Ukraine Not Entered Balaklavskiy Rayon Ukraine Not Entered Bakhchisarayskiy Rayon Ukraine Not Entered Bakhchysaray Ukraine Not Entered Artemovo Results Project Development Objective Indicators Public Disclosure Copy Page 3 of 8 The World Bank Report No: ISR14900 Indicator Name Core Unit of Measure Baseline Current End Target Power market opening Text Value 0% Power Market Opening, Law was signed by President Model of bilateral agreements on November 26, 2016 and with a balancing market Public Disclosure Copy became effective on January operational. 1, 2014. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments Law was registered in the The Indicator name, target, and Law of Ukraine "On Operating target date revised in level 2 Principles of Electricity Market restructuring approved May of Ukraine" No. 663-VII 10, 2012. effective from January 1, 2014. The new liberalized electricity market to come (as envisaged by the Law on Electricity Market) starting July 1, 2017. Support sustainable economic development by Text Value Estimated Energy not served Continued progress under Energy not served reduced by improving security, reliability, efficiency and due to transm. system contracts for Dniper and at least 35 GWh/year quality of energy supply through investments failures: 747.3 GWh Donbas Power Grids Transmission losses reduced (rehabilitation and strengthening of Transmission losses: 3.4% including installation of high to less than 2.5%. Voltage transmission network) Voltage quality:voltage voltage circuit breakers for within acceptable range inall outside accept. range (+/-5% 750kV SS and Protective substations included in the of the nominal voltage) in Relaying and Automation. project. several substations Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments Too early to monitor ENS and Indicator name, target, and other baseline indicators as target date revised in level 2 SS are not operational yet. restructuring approved May When SS are in place UE will 10, 2012. be able to measure at each SS indicators and provide us with the access to data. Public Disclosure Copy Implementation of the Wholesale Electricity Text Value WEM concept adopted in WEM law was signed by the Trial Operation Market (WEM) concept 2002 but not implemented. President on November 26, Draft law on Operational 2013 and become effective on Principles of Ukraine's Power January 1, 2014. Market Implementation will be carried out until July 1, 2017 . Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments Until July 1, 2017 law should Slight change to name of be fully implemented and indicator; end target and end starting July 1, 2017, shall target date revised in level 2 Page 4 of 8 The World Bank Report No: ISR14900 consist of the following market restructuring approved on segments, whichare: 1) May 10, 2012. market of bilateral agreements; 2) day-ahead Public Disclosure Copy market; 3) balancing market; 4) retail electricity market, and; 5) ancillary services market. Transmission lines constructed or rehabilitated Kilometers Value 0.00 72.90 72.90 under the project Date 29-Dec-2006 16-May-2014 31-Dec-2014 Comments 72.9 km of transmission line Construct Dnister Bar were constructed under Transmission Line contract UE/005 and put into Operation in October 2012. Transmission lines constructed under the Kilometers Value 0.00 72.90 72.90 project Sub Type Date 29-Dec-2006 16-May-2014 31-Dec-2014 Breakdown Comments 72.9 km of transmission line Construct Dnister Bar Dnister-Bar were constructed Transmission Line under contract UE/005 and put into Operation in October 2012. Electricity losses per year in the project area Percentage Value 1.96 1.70 1.65 Date 29-Dec-2006 16-May-2014 31-Dec-2014 Comments In 4 Energy Systems Reduce Transmission Losses (Dniprovska ES, Donbas ES, South Western ES and Crimea ES) Technical Losses have fallen due to Bank modernization of substations and construction of Transmission Line. Total net injected generation Megawatt hour Value 138215.00 151465.00 155768.00 Public Disclosure Copy (MWh) Sub Type Supplemental Electricity losses per year in the project area- Percentage Value 2.53 2.17 2.00 Technical Sub Type Supplemental Page 5 of 8 The World Bank Report No: ISR14900 Electricity losses per year in the project area- Percentage Value 0.00 0.00 0.00 Non-Technical Sub Type Supplemental Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Component A: Rehabilitation of Transmission Text Value Obsolete substation Contracts are signed and Completion of reconstruction Substations equipment under implementation. of 5 s/s 220 kV and 330 kV, Replacement of 42 power breakers at 750 kV S/S and completion of installation of relay protection systems and automation systems at 750 kV S/S. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments Contracts implementation is Target reworded and target progressing. There are risks date extended in level 2 on implementation of restructuring approved on UE/001/1, UE/001/2, May 10, 2012. UE/001/3, UE/002/1, UE/002/2, andUE/004 as well as of Crimea Contract UE/007. Component B: Strengthening of Transmission Text Value Inadequate transmission line Contract is fully completed. Expansion of Bar substation Network capacity and construction of Dnister- Bar PSP transmission line completed by 2012. Improved voltage quality/ Reduced ENS. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments By end of April 2013 contract End target and end target Public Disclosure Copy was fully completed and was date revised in level 2 commissioned. restructuring approved on May 10, 2012. Component C: Stabilization of the Crimea Text Value Low reliability and quality of Contract UE/008 has been Completion of modernization electric power grid power supply. completed and Contract of 330 kV S/S. UE/007 is under implementation but has a risk of non-completion because of the situation in Crimea. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Page 6 of 8 The World Bank Report No: ISR14900 Comments Contract UE/008 was fully End target and end target completed and final payments date revised in level 2 are due. Partial supply of restructuring approved on equipment to Simferopol SS May 10, 2012. Public Disclosure Copy was done and installation was ongoing until February 2014 when situation in Crimea changed. Now contract implementation stopped completely until further notice. Component D: Management Information Text Value Not established Has been moved to Second Completed implementation System Power Transmission Project. and commissioning. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments Consultancy Package for the End target date revised in Management Information level 2 restructuring of May System (MIS). The contract 10, 2012. was signed on January, 2012. The Consultant has prepared draft Technical Specifications for tender that will be carried out to implement the Management Information System, MIS (contractUE/009). Tender package has been moved to Second PTP Project. Component E: Implementation of Grid Code. Text Value Developing NERC approval expected Applied. after Grid Code is revised according to the approved WEM Law. Date 29-Dec-2006 04-Jun-2014 31-Dec-2014 Comments End target dates revised in Public Disclosure Copy level 2 restructuring approved May 10, 2012 Data on Financial Performance (as of 09-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P096207 IBRD-48680 Effective 02-Aug-2007 09-Nov-2007 05-Dec-2008 30-Jun-2012 31-Dec-2014 Disbursements (in Millions) Page 7 of 8 The World Bank Report No: ISR14900 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096207 IBRD-48680 Effective USD 200.00 200.00 0.00 131.86 68.14 66.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation No new decisions at this time. Restructuring History Level two Approved on 15-Oct-2011, Level two Approved on 09-May-2012 Related Projects Public Disclosure Copy P145135-CTF Ukraine Smart Grid Project Page 8 of 8