Hydropower Rehabilitation Project

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The main objective of the Hydropower Rehabilitation Project is to improve the operational stability, and reliability of power supply by increasing the regulatory capacity, efficiency, and safety of hydroelectric plants, thus, facilitate entrance to the electricity market. In addition, the project will support the Ministry of Fuel and Energy and the National Electricity Regulatory Commission (NERC), in the preparation and implementation of the Energy Sector Reform and Development Program, including the Wholesale Electricity Market concept. The Project has five components, as follows: 1) Rehabilitation of hydroelectric plants - includes the refurbishment of hydroelectric units and associated plant equipment at nine hydroelectric plants. The component also includes the refurbishment of high voltage equipment for nine switchyards connected to these hydroelectric plants. 2) Dam safety - involves the rehabilitation of, and upgrade at existing dams, which entails the installation of new dam safety monitoring systems, and rehabilitation of drainage facilities and spillway gates, on six dams on the Dnipro River, and one dam on the Dnister River. 3) UkrHydroEnergo (UHE) Institutional Development - will help establish a corporate-wide Management Information System (MIS) in UHE. This component will further provide technical assistance to UHE to improve the financial management, enhance dam safety, optimize the schedule of the multi-purpose cascade of hydropower plants, capacity building in procurement and project management, and, support training assistance for the UHE staff in dam safety. 4) Implementation of the energy sector reform and development program - seeks to provide advisory services, and consultancy assistance to develop and implement an action plan, harmonizing the legal and technical aspects of Ukraine's energy market, with those of the European Union Internal Energy Market, and, to foster a program of priority investments, and technical assistance in the energy sector. 5) Implementation of the wholesale electricity market (WEM) Concept - through the provision of technical assistance to NERC in implementing the WEM concept, focused on a clear market design, and on the main principles of market operation. Moreover, main codes and rules shall be drafted, while supporting tools, such as software, telecommunication systems and metering, shall be specified, and adapted.