The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Second Power Transmission Project (P146788) EUROPE AND CENTRAL ASIA | Ukraine | IBRD/IDA | Investment Project Financing (IPF) | FY 2015 | Seq No: 21 | Archived on 18-Dec-2024 | ISR02877 Implementing Agencies: Ministry of Energy of Ukraine, Ministry of Finance, National Power Company Ukrenergo (UE) 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 22-Dec-2014) To improve the reliability of power transmission system and support implementation of the Wholesale Electricity Market in Ukraine. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Rehabilitation of Transmission Substations:(Cost 208,000,000.00) Electricity Market Enhancement:(Cost 147,100,000.00) Improving of Institutional Capacity of MoECI for Reform Implementation:(Cost 2,500,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Dec 18, 2024 Page 1 of 8 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) 4.1 Implementation Status and Key Decisions The Project has been substantially affected by Russia’s invasion of Ukraine, leading to the delayed implementation of the contracts under Component 1 “Rehabilitation of Transmission Substations” and Component 2 “Electricity Market Enhancement” with Force Majeure declared under most contracts and on site construction work frequently disrupted. Component 3 keeps providing critical technical support to the Ministry of Energy to respond to the sector's critical situation. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Last Approved Rating Risk Category Rating at Approval ISR Seq. 020 - 25 Jun Proposed Rating 2024 Political and Governance  High High Macroeconomic  High High Sector Strategies and Policies  Substantial Substantial Technical Design of Project or Program  Moderate Moderate Institutional Capacity for Implementation and  Moderate Moderate Sustainability Fiduciary  Substantial High Environment and Social  Moderate Moderate Stakeholders  Low Low Overall  Substantial Substantial Dec 18, 2024 Page 2 of 8 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Improve reliability of the power transmission system and support implementation of the WEM Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Number of outages at 253.00 May/2014 253.00 20-Jun-2024 253.00 20-Dec-2024 60.00 Jun/2025 rehabilitated SSs is reduced (Number) Sumy (Number) 27.00 May/2014 27.00 20-Jun-2024 7 20-Dec-2024 7.00 Jun/2025 Novokyivska (Number) 35.00 May/2014 35.00 20-Jun-2024 8 20-Dec-2024 8.00 Jun/2025 Kremenchuk (Number) 37.00 May/2014 37.00 20-Jun-2024 9 20-Dec-2024 9.00 Jun/2025 Bohorodchany 15.00 Apr/2019 15.00 20-Jun-2024 4 20-Dec-2024 4.00 Jun/2025 (Number) Boryslav (Number) 6.00 Apr/2019 6.00 20-Jun-2024 1 20-Dec-2024 1.00 Jun/2025 Ivano-Frankivsk 17.00 Apr/2019 17.00 20-Jun-2024 4 20-Dec-2024 4.00 Jun/2025 (Number) Kovel (Number) 14.00 Apr/2019 14.00 20-Jun-2024 3 20-Dec-2024 3.00 Jun/2025 0.00 May/2014 39.20 20-Jun-2024 85 20-Dec-2024 85.00 Jun/2025 Share of electricity traded on bilateral basis and day ahead Comments on Market will start on July 1, 2019 and then team will report on Share of electricity traded on market in WEM of Ukraine achieving targets bilateral basis and day ahead market in WEM of Ukraine (Percentage) Decrease in power usage for 8,951.00 May/2014 8,951.00 20-Jun-2024 8,951.00 20-Dec-2024 8,324.00 Dec/2023 Page 3 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) own needs of Substations Comments on so far no decrease as rehabilitation of SS has not been completed which were reconstructed achieving targets (Megawatt hour(MWh)) North Region SS 3,299.00 May/2014 3,299.00 20-Jun-2024 3,091 20-Dec-2024 3,091.00 Jun/2025 Kremenchuk, Sumy (Megawatt hour(MWh)) Central Region: SS 3,863.00 Jun/2015 3,863.00 20-Jun-2024 3,405 20-Dec-2024 3,405.00 Jun/2025 Novokyivska, Nyvki, Cherkaska, Zhytomyrska (Megawatt hour(MWh)) Western Region: SS 5,414.00 May/2014 5,414.00 20-Jun-2024 5,226 20-Dec-2024 5,226.00 Jun/2025 Kalush, Bohorodchany, Boryslav, Rivne, Ivano- Frankivsk, Kovel (Megawatt hour(MWh)) 6.2 Intermediate Results Indicators by Components Rehabilitation of Transmission Substations Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Reduced operating and 0.00 May/2014 0.00 20-Jun-2024 0.00 20-Dec-2024 50.00 Jun/2025 maintenance costs at the rehabilitated SSs: Page 4 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Novokyivska, Kremenchuk, Sumy, Bohorodchany, Boryslav, Ivano,Frankivsk, Kovel etc (Percentage) Novokyivska 0.00 0.00 50 50.00 (Percentage) Kremenchuk 0.00 0.00 50 50.00 (Percentage) Boryslav (Percentage) 0.00 0.00 0 50.00 Ivano-Frankivsk 0.00 0.00 0 50.00 (Percentage) Kovel (Percentage) 0.00 0.00 0 50.00 Sumy (Percentage) 0.00 0.00 50 50.00 Bohorodchany 0.00 0.00 0 50.00 (Percentage) Electricity losses per year in 1.90 May/2014 1.60 20-Jun-2024 1.60 20-Dec-2024 1.40 Jun/2025 the Project area (Percentage) 0 May/2014 Due to the war, the 20-Jun-2024 SS 20-Dec-2024 Contracts Jun/2025 indicator cannot be rehabilitation of Completed Implementation progress of assessed. Zhytomyrska, SS Rehabiliation in: Sumy, and Novokyyivska, Kremenchuk, Kremenchuk Sumy, Bohorodchany, are completed. Boryslav, Ivano-Frankivsk, Comments on Construction have started in the original six substations except Nyvky and Cherkaska substations Kovel, Pivnichnoukrainska achieving targets (UE/1A Lot 2 and UE/1B Lot 2). Contracts became effective for the additional six substations in and Trykhaty (Text) October/November 2020 and contractors are developing detailed designs. Voltage at bus bars 35kV at 0.00 May/2014 0.00 20-Jun-2024 0.00 20-Dec-2024 0.00 Jun/2025 Page 5 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) the rehabilitated SSs are within operating limits +-5% (Volts) Kamianets-Podilska 42.00 May/2014 36.00 20-Jun-2024 36.00 20-Dec-2024 36.00 Jun/2025 (Volts) Shepetivka (Volts) 41.00 May/2014 36.00 20-Jun-2024 36.00 20-Dec-2024 36.00 Jun/2025 Kovel (Volts) 40.00 May/2014 36.00 20-Jun-2024 36.00 20-Dec-2024 36.00 Jun/2025 Novovolynsk (Volts) 40.00 May/2014 35.00 20-Jun-2024 35.00 20-Dec-2024 35.00 Jun/2025 Lutsk Pivdenna 40.00 May/2014 35.00 20-Jun-2024 35.00 20-Dec-2024 35.00 Jun/2025 (Volts) Energy Not Served reduced 0.00 May/2014 0.00 20-Jun-2024 0.00 20-Dec-2024 0.00 Jun/2025 (Gigawatt-hour (GWh)) North Region 7.00 May/2014 7.00 20-Jun-2024 7.00 20-Dec-2024 50.00 Jun/2025 (Gigawatt-hour (GWh)) Central Region 35.00 May/2014 35.00 20-Jun-2024 35.00 20-Dec-2024 50.00 Jun/2025 (Gigawatt-hour (GWh)) West Region 25.00 25.00 25.00 50.00 (Percentage) Tons of GHG emissions 0.00 May/2014 0.00 20-Jun-2024 0.00 20-Dec-2024 2,804,407.00 Jun/2025 reduced or avoided based on Comments on no changes as rehabilitation of SS has not been completed Electricity Savings achieving targets (Tones/year) Annual energy savings 0.00 Dec/2014 220,000.00 20-Jun-2024 220,000.00 20-Dec-2024 430,000.00 Jun/2025 (MWh/year) 0.00 Dec/2014 6,256.60 20-Jun-2024 6,256.60 20-Dec-2024 1,100.00 Jun/2025 Increased installed RE caapacity in Ukraine ES Comments on The installed capacity of renewable energy has reached to 6,257 MW by November 2020. (Megawatt) achieving targets Page 6 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Electricity Market Enhancement Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Feasibility May/2014 Implementation of 20-Jun-2024 Implementation 20-Dec-2024 System Jun/2025 study two contracts of two implementation completed (UE/4A Lot 1 contracts completion. Supervisory Control (UE/4A Lot 1 The facility was and Data Supervisory put into Acquisition (SCADA) Control and commercial and UE/4B Lot 3 Data operation. Information Acquisition Infrastructure (SCADA) and Platform have been UE/4B Lot 3 implemented with Information some amendments Infrastructure and time extensions Platform have Implementation progress of to accommodate been Smart Grid (Text) the war situation. implemented The new package with some UE/24 Design, amendments Supply, and and time Installation of extensions to STATCOM devices accommodate has been added to the war the Project and its situation. The manufacturer new package started the UE/24 Design, manufacturing Supply, and process. Installation of STATCOM Page 7 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) devices has been added to the Project and its contract implementation is on track. Feasibility May/2014 The Balancing 20-Jun-2024 Contract 20-Dec-2024 Contract Jun/2025 study Market software implementation implementation completed procured under the completed completion UE/5 Lot 1 package has been successfully installed on time by July 1, 2019, when the new wholesale electricity market Implementation of Balancing (WEM) went online. Market (Text) Contracts for UE/5 Lot 3 (Telecommunication Infrastructure) and UE/5 Lot 4 (Data Processing Centers) have been implemented and providing critical services during the war time. Feasibility May/2014 The contract is 20-Jun-2024 The contract is 20-Dec-2024 MIS is fully Jun/2025 Implementation progress of study awarded to Joint awarded to operational (all MIS (Text) Venture between Joint Venture modules of the Page 8 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) completed Ernst & Young LLC between Ernst system) and CS INTEGRA LLC & Young LLC on March 12, 2019. and CS UE has completed INTEGRA LLC on the contract March 12, signature on June 2019. UE has 12, 2019. Due to completed the force majeure contract circumstances (a signature on consequence of June 12, 2019. martial law), the Due to force terms of majeure performance of circumstances work under the (a consequence contract have been of martial law), extended. It was the terms of decided to move to performance of the step-by-step work under the launch of the contract have implemented been extended. functionality of the It was decided Information System to move to the being delivered to step-by-step allow flexible launch of the response to implemented resource constraints functionality of and the influence of the Information external factors System being during force delivered to majeure, as well as allow flexible to use the response to Page 9 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) developed parts of resource subsystems by the constraints and Purchaser. the influence of external factors during force majeure, as well as to use the developed parts of subsystems by the Purchaser. Page 10 of 12 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed Historical Disbursed IBRD-84620 Effective 330.00 270.00 60.00 212.98 57.02 78.88% 330.00 TF-17661 Effective 48.42 48.42 0.00 44.16 4.26 91.19% 48.42 TF-C0819 Effective 40.42 39.59 0.00 14.92 25.25 37.14% 40.42 7.3 Key Dates (by loan) Dec 18, 2024 Page 7 of 8 The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IBRD-84620 Effective 22-Dec-2014 10-Feb-2015 09-Jun-2015 30-Jun-2020 30-Jun-2025 TF-17661 Effective 22-Dec-2014 10-Feb-2015 09-Jun-2015 30-Jun-2020 30-Jun-2025 TF-C0819 Effective 03-Jul-2023 18-Jul-2023 01-Dec-2023 31-Dec-2023 30-Jun-2025 8. KEY DATES Key Events Planned Actual Approval 22-Dec-2014 22-Dec-2014 Effectiveness 09-Jun-2015 09-Jun-2015 Mid-Term Review No. 01 01-May-2018 07-Jun-2018 Operation Closing/Cancellation 30-Jun-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 18-Apr-2019 Restructuring Level 2 Approved on 26-Oct-2021 Restructuring Level 2 Approved on 11-Dec-2023 10. ASSOCIATED OPERATION(S) There are no associated operations Dec 18, 2024 Page 8 of 8