WB grants to Ukraine a USD 378.4 million loan for transmission system upgrades and electricity market reforms

On February 10, 2015, Minister of Energy and Coal Industry of Ukraine Volodymyr Demchyshyn and World Bank Country Director for Ukraine, Belarus and Moldova, Europe and Central Asia Qimiao Fan signed documents to grant Ukraine a USD 378.425 million loan for the Second Power Transmission Project (PTP2).

The project will focus on improving the reliability of the transmission system and support the implementation of the wholesale electricity market in Ukraine.

"We are delighted to deepen our support for Ukraine's energy sector, which has strategic importance for the country. This investment will contribute to the efforts in developing plans for renewable energy integration, applying smart grid solutions at power transmission. The funding will also be directed to the implementation of the wholesale electricity market and enhancing the electricity market competitiveness by aligning the Ukrainian network with the European Network of Transmission System Operators for Electricity. This will help to strengthen not only national, but also regional energy security," said World Bank Director for Belarus, Moldova and Ukraine Qimiao Fan.

"Throughout the years the World Bank has been a reliable and consistent partner of Ukraine in reforming the energy sector. Today, on the outcomes of an official ceremony of signing the Loan Agreement, the Agreement on the lending by the Clean Technology Fund and the Project agreements, we are to complete an important stage in the preparation of this project. Ahead there is long and tedious work, but I believe that with joining efforts it will be implemented perfectly," assured the Minister of Energy and Coal Industry Volodymyr Demchyshyn.

The new project is part of the World Bank Group overall assistance in Ukraine announced in March this year. The Bank Group pledged up to USD 3.5 billion of new lending for Ukraine in 2014, of which over USD 2.5 billion had been provided.