South Ukraine Transmission Project

complete

The proposed project consists of construction of a new 750kV power transmission line between Zaporizhzhia Nuclear Power Plant and Kakhovka substation; new 750/330/220kV Kakhovka substation; two diversions of the existing 330 kV lines; rehabilitation of 330kV/220kV Novokakhovska substation; automatic protection and communication equipment; fibre optic connection on the existing 330kV lines. The line and the diversions will be constructed along new routes and as part of the review a number of alternative routes were considered. The objective of this project is to increase overall reliability, efficiency and security of the power system of the country, in particular improve electricity supply to southern regions. The transition impact potential stems primarily from (i) support of Ukrainian energy system stability and reliability; (ii) considerable energy efficiency improvements for the entire energy sector; (iii) reduction in greenhouse gas emissions; and (iv) assisting in the reform process for the Ukrainian electricity sector. Ukrenergo, fully State owned company responsible for high voltage transmission and dispatch of electricity in Ukraine. €175 million sovereign loan. Up to €449 million. The Project has been categorised as A (2008) requiring an Environmental and Social Impact Assessment (“ESIA”). ESIA was undertaken by an international consultant to meet EBRD Environmental and Social Policy and Performance Requirements for A level projects of this type. The ESIA focused on the overall environmental and social impacts and provision of appropriate guidance and recommendations for future contractors during the construction process. These recommendations are included in the environmental and social management and monitoring plan (ESMMP) and all contractors will need to adhere to these requirements. The ESIA report prepared by an independent international consultant, commissioned by Ukrenergo, has identified a number of environmental and social impacts that have been assessed and investigated as part of the ESIA process. These impacts have ranged from visual impacts to ornithology as well as land use and acquisitions. An Environmental and Social Management and Monitoring Plan has been developed to mitigate and address these. The project is at the public consultations stage, and the ESMMP may be further amended following this process. The draft final ESIA documents were made publicly available as required under the Bank’s Policies, in both Ukrainian and English. The public hearings on this project are to take place at the end of October - beginning of November 2009. During the project implementation an additional subproject was undertaken for the construction of a fibre-optic cable and the rehabilitation of an existing 330 kV Novokakhovska – Khersonska overhead line. An independent Environmental and Social Impact Assessment (EISA) was undertaken of this work to assess any potential environmental and social impacts. This has demonstrated that the Project  is associated with minimal environmental and social issues and does not materially affect the conclusions of the existing ESIA. The Addendum ESIA and Non-Technical Summary were disclosed and can be obtained from the Ukrenergo website in English and Ukranian. There is an Environmental and Social Impact Assessment available for this project. The TC funding to finance the assistance programme to the National Electricity Regulatory Commission (NERC) in the reform of the Wholesale Energy Market of Ukraine has been provided by the European Union’s Neighborhood Investment Facility. The TC funding will help the Client with procurement activities under the project as well as assist in preparation of new investment projects in the high voltage sphere.  The European Union’s Neighborhood Investment Facility funding has also been involved by the EBRD to assist the National Electricity Regulatory Commission (NERC) in the reform of the Wholesale Energy Market of Ukraine. Separate TC funds were used to carry out an additional bird survey as one of the requirements of the ESMMP prepared in the result of the ESIA. That will allow to assess potential impacts on birds’ habitats and migratory routes that are crossed by the line. The ESMMP may be further amended following this study.