World Bank OKs USD 378.4 M Loan for Power Sector Upgrades in UkraineWorld | December 23, 2014, Tuesday // 08:00| views
The World Bank’s Board of Executive Directors approved Monday a USD 378.425 M loan for the development of Ukraine’s energy sector.
The sum was allocated to a project aimed at improving the reliability of Ukraine’s power transmission system and supporting the implementation of the Wholesale Electricity Market in the country, according to a media statement of the World Bank.
By backing the so-called Second Power Transmission Project, the Bank seeks to step up support for energy sector reforms in Ukraine.
The project includes a USD 48.425 M loan provided by the Clean Technology Fund (CTF), which will be used to assist Ukrenergo in the design and installation of the next generation of modern communications, grid management, and control systems, which will enable large-scale integration of wind and solar energy resources and improve management and operation of the transmission network.
In addition, the project provides USD 2.5 M of institutional support to Ukraine’s Ministry of Energy and Coal Industry for the implementation of energy sector reforms in line with its commitments within the Energy Community and the EU Association Agreement.
This new project is part of the World Bank Group’s overall assistance to Ukraine announced in March 2014. The Bank Group has pledged up to USD 3.5 B of new lending for Ukraine in 2014, of which over USD 2.5 B has already been provided.
The World Bank has been providing support for energy sector reforms in Ukraine since 2004.
The main objectives of these reforms are to: provide investments for energy infrastructure; improve the safety and reliability of the power supply; contribute to the uninterrupted operation of the Ukrainian energy market; and support Ukraine in its legislative, institutional, and technical harmonization of the energy sector with the European Union’s (EU) Internal Energy Market.
The Second Power Transmission Project, or PTP2, contributes to providing a strategic framework for the development of Ukraine’s power sector in a sustainable manner.