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Energy Ministry plans to sign agreement with German KfW on lending to two projects for reconstruction of Ukrenergo substations

KYIV. Oct 12 (Interfax-Ukraine) – The Ministry of Energy of Ukraine intends to sign agreements with the German state bank KfW on lending to two new projects for the reconstruction of substations of NPC Ukrenergo and increasing the efficiency of the electricity transmission system.

"The Ministry of Energy supports the signing of a package of agreements on a new project on improving the efficiency of electricity transmission (modernization of substations) II and preparation of the next joint project on improving the efficiency of electricity transmission (integration of the Ukrainian IPS into the European interconnected system) III," Deputy Energy Minister Yaroslav Demchenkov said.

As the ministry said, within the framework of these projects, the automation of eight substations in the South-West region and the Podilska substation are envisaged.

At present, Ukrenergo is already implementing two projects with KfW with a total value of loans of EUR 190.5 million. The projects provide for financing measures to improve the safety, reliability and efficiency of electricity supplies through the reconstruction of substations that have been in operation for a long time and for the most part have electrical equipment requiring annual costs for its restoration and maintenance at the proper technical level.

These are, in particular, the Kryvorizhska, Dnipro-Donbas, Zaporizhska, Dniprovske, Kharkivska and Zaliutyne substations.