REUTERS
The European Bank for Reconstruction and Development (EBRD) will allocate EUR 65 million to the Ukrainian national transmission network operator Ukrenergo for the construction of the Zakhidna 330 KV substation, as well as the construction of two 330 kV lines that will connect the new substation to the power grid, according to a statement by the bank.
"This project should help Ukraine and Ukrenergo improve the reliability of electricity supplies, increase energy efficiency, meet growing demand for power in the Ukrainian capital and tackle problems linked to power shortages and blackouts in the city of Kyiv and the region," the statement reads.
The bank also noted that the project costs are covered by procurement savings of EUR 175 million achieved by Ukrenergo in 2010 during the implementation of the Zaporizhzhia-Kakhovska high-voltage transmission line project.
"The savings were achieved as a result of a competitive tendering procedure, using the EBRD’s procurement rules," the bank said in its statement.
The EBRD is the largest financial investor in Ukraine. As of March 1, 2015 the bank had committed itself to provide a total of EUR 10.9 billion for 344 projects in the country.
NPC Ukrenergo operates Ukraine’s main and interstate power transmission lines, as well as the centralized dispatch management of the national grid of Ukraine. Ukrenergo is a state-owned enterprise subordinate to the Ministry of Energy and the Coal Industry.