CJSC AES Kyivoblenergo & CJSC AES Rivneenergo

completed

The Ukrainian electricity distribution companies, Kyivoblenergo (KOE) and Rivneenergo (ROE) (together, called the “Companies”) were privatized in 2001 and are owned by the AES Washington Holdings B.V. (AES B.V.), an affiliate of AES Corporation (AES), a global power holding company. KOE supplies energy to over 800,000 customers spread over a 28,400 square kilometer service area in the Kyiv oblast (excluding the city of Kyiv). ROE supplies energy to over 400,000 customers in a 20,100 square kilometer service area in the Rivne oblast, situated in the northwest of the country. Both KOE and ROE operate in a similar manner, with centralized administration, a central warehouse, and a transformer rebuilding shop. Most maintenance and repairs are done by in-house staff, with contractors being used for construction and maintenance of 110 kV equipment. Each company's operating districts ("RES") are largely self-contained, with separate shops, fueling, warehouses, etc. These RESs (28 in KOE and 14 in ROE) are being reconfigured into larger operating regions of 3 to 5 regions for each company. KOE and ROE's existing networks are old and configured for the much higher peak loads that were experienced during the Soviet period. While both service areas are nearly 100% electrified, new service is needed in high growth areas. The 2005-2008 capital investment program that will be supported by IFC will provide for reduction of commercial and technical losses, refurbishment of ageing network equipment, capacity expansion in high growth areas, and improvement in management efficiency through investments in communication and information systems. The investment program will also enable improvements to the Companies' operational policies and procedures.