Implementation Status & Results Ukraine Power Transmission Project in Support of the Energy Sector Reform & Development Program (P096207)
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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Ukraine Power Transmission Project in Support of the Energy Sector Reform & Development Program (P096207) Operation Name: Power Transmission Project in Support of the Energy Sector Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive : 19-Jun-2013 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 s Board Approval 02-Aug-2007 Original Closing 30-Jun-2012 Planned Mid Term Review Last Archived ISR 19-Dec-2012 Effectiveness 05-Dec-2008 Revised Closing Actual Mid Term Review 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? losure Authorized Public Disclosure Authorized Yes No Component(s) Component Name Component Cost A1. Rehabilitation of HV substations (Dnieper Electric Power Grid) A2. Rehabilitation of HV substations (Donbas Electric Power Grid) A3. Rehabilitation of 750 kv substations B. Strengthening of transmission network C. Stabilization of Crimea Electric Power Grid D1. UE Institutional Development Management Information System 5.45 D2. UE Institutional Development Technical Assistance 4.45 E. Implementation of Grid Code 0.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Page 1 of 9
2 Previous Rating Current Rating Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview During 2012 and the first quarter of 2013, implementation of the Power Transmission Project has progressed well towards meeting its development objectives. Most of the contracts are already under implementation. Thus far, the project has completed construction of Dnister-Bar Transmission Line and is in the final stages of rehabilitation and extension of Bar Substation. Works on rehabilitation of seven other large 330kV substations are ongoing. A conceptual plan for technical and legal harmonization with the EU Energy Market is being updated. The draft Wholesale Electricity Market Law is under review in Parliament. 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 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 9
3 Country First Administrative Division Location Planned Actual Ukraine Not Entered Kryvyy Rih 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 Page 3 of 9
4 Indicator Name Core Unit of Measure Baseline Current End Target Power market opening Text Value 0% Power Market Opening, The draft WEM law is under review in the parliament prepared for second reading. Mercados and KPMG are finalizing their work based on the legislative requirements of Energy Community Treaty. When WEM Law is ratified Market will be open for 100% and implemetation of WEM then will take around 5 years. Support sustainable economic development by improving security, reliability, efficiency and quality of energy supply through investments (rehabilitation and strengthening of transmission network) Text Value Estimated Energy not served due to transm. system failures: GWh Transmission losses: 3.4% Voltage quality:voltage outside accept. range (+/-5% of the nominal voltage) in several substations Law was registered in the Parliament in June 2012 and was send for review to 5 committees and finally revised was send for the 1st reading and was approved. Now it should move to 2nd and final reading before being signed by President. KPMG and Mercados work on ECT requirements - final reports are under review of Ministry of Energy. Continued progress under contracts for Dniper and Donbas Power Grids including installation of high voltage circuit breakers for 750kV SS and Protective Relaying and Automation. Too early to monitor ENS and other baseline indicators as SS are not operational yet. When SS are in place UE will be able to measure at each SS indicators and provide us with the access to data. Beginning of transition to a model of bilateral agreements with a trial balancing market in 2013 and a model of bilateral agreements with a balancing market operational in Indicator name, target, and target date revised in level 2 restructuring approved May 10, Energy not served reduced by at least 35 GWh/year Transmission losses reduced to less than 2.5%. Voltage within acceptable range inall substations included in the project. Indicator name, target, and target date revised in level 2 restructuring approved May 10, Page 4 of 9
5 Implementation of the Wholesale Electricity Market (WEM) concept Transmission lines constructed or rehabilitated under the project Transmission lines constructed under the project Text Value WEM concept adopted in 2002 but not implemented. Draft law on Operational Principles of Ukraine's Power Market WEM law was approved in 1st reading end of 2012 and now should be reviewed in second reading by July Draft law prepared and under review by committees in Rada and should be submitted to the parliament for 1st and 2nd reading in Trial Operation of market in Slight change to name of indicator; end target and end target date revised in level 2 restructuring approved on May 10, Kilometers Value km of transmission line were constructed under contract UE/005 and put into Operation in October Construct Dnister Bar Transmission Line Kilometers Value Sub Type Breakdown 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 Electricity losses per year in the project area Percentage Value 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 (MWh) Sub Type Supplemental Value Page 5 of 9
6 Electricity losses per year in the project area- Technical Electricity losses per year in the project area- Non-Technical Intermediate Results Indicators Percentage Sub Type Supplemental Percentage Sub Type Supplemental Value Value Indicator Name Core Unit of Measure Baseline Current End Target Component A: Rehabilitation of Transmission Substations Component B: Strengthening of Transmission Network Text Value Obsolete substation equipment Text Value Inadequate transmission line capacity Contracts are signed and under implementation. Contracts implementation is progressing well for rehabilitation of High Voltage Circuit Breakers for 750 kv substations, ProtectiveRelaying and Automation, Bar substation, rehabilitation of 3 substations in Dniper Power Grid and 2 substations in Donbas. Bar SS contract has beeen completed in May 2013 and the rest is progressing in line with schedule. Contract is fully completed. By end of April 2013 contract Completion of reconstruction of kv and 330 kv substations. Replacement of 130 circuit breakers at 750 kv S/S. Completion of installation of relay protection systems and automations systems at 750 kv S/S. Target reworded and target date extended in level 2 restructuring approved on May 10, Expansion of Bar substation and construction of Dnister- Bar PSP transmission line completed by Improved voltage quality by 12/31/2014. End target and end target date revised in level 2 Page 6 of 9
7 Component C: Stabilization of the Crimea electric power grid Component D: Management Information System Text Value Low reliability and quality of power supply. was fully completed and was commissioned. Contracts 007/008 are under implementation. Technical/geological works have been completed at the sites with the supply of equipment started early Text Value Not established The bidding package for the MIS (UE/009) has been finalized in early April As this tender package is very complex and needs time for tendering and implementation, the possibility to move contract tendering and implementation to the PTP II Project was discussed with the management of Ukrenergo. Consultancy Package for the Management Information System (MIS). The contract was signed on January, 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 is planned to be moved to PTP II Project. restructuring approved on May 10, Completion of modernization of 330 kv S/S. Completion of modernization of control systems at 220 and 330 kv substations. End target and end target date revised in level 2 restructuring approved on May 10, Completed implementation and commissioning, and in operation. End target date revised in level 2 restructuring of May 10, Page 7 of 9
8 Component E: Implementation of Grid Code. Text Value Developing NERC approval expected after approval of WEM Law. NERC approval expected after approval of WEM Law. Data on Financial Performance (as of 14-May-2013) Financial Agreement(s) Key s Adopted in Applied in End target dates revised in level 2 restructuring approved May 10, 2012 Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IBRD Effective 02-Aug Nov Dec Jun-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD Disbursement Graph Key Decisions Regarding Implementation No new decisions at this time. Page 8 of 9
9 Restructuring History Level two Approved on 15-Oct-2011, Level two Approved on 09-May-2012 Related Projects P CTF Ukraine Smart Grid Project Page 9 of 9
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