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Ukraine seeks bids for Ukraine–EU Energy Bridge project [free access]

January 30, 2019

Ukraine’s Ministry of Energy and Coal Industry has issued a tender for implementation of the Ukraine–EU Energy Bridge project under the public-private partnership (PPP) mode.

 

The project aims to initiate an integration of the Ukrainian power system into the European Network of Transmission System Operators (ENTSO-E). It contemplates reactivation of the existing 750 kV overhead line (OHL) between the Khmelnytsky Nuclear Power Plant (NPP) in Ukraine and Rzeszów in Poland, and interconnection of Unit 2 of the Khmelnytsky NPP with the Burshtyn energy island, a Ukrainian territory in the Lviv region that is permanently connected to the European power grid. The project not only aims to export of an additional 1 GW of electricity to European Union (EU) countries, but will also allow for the transport of power from Germany and Poland to Hungary, Romania and Balkan countries, besides attracting financial support required for the development of nuclear power generating capacities.

 

The scope of the PPP contract entails undertaking modernisation and reconstruction works for the 750 kV outdoor switchgear unit at the Khmelnytsky NPP; energy network of Units 1 and 2 at the Khmelnytsky NPP; 750 kV Zakhidnoukrainska substation; 750 kV Khmelnytsky NPP–Rzeszów and Zakhidnoukrainska (Ukraine)–Albertirsa (Hungary) transmission lines; along with the construction of a new transformer.

 

The selected private partner will also be required to interconnect Unit 2 of the Khmelnytsky NPP, and part of the 750 kV Zakhidnoukrainska substation and 750 kV Khmelnytsky NPP–Rzeszów line with the Burshtyn energy island within 13 months prior to signing the agreement. Further, after completion of works, the partner will undertake the export of electricity generated at Unit 2 of the Khmelnytsky NPP to the EU countries by purchasing the same from the Ukrainian NPP operator Energoatom; and provide annual increases in production at the Ukrainian NPPs by 3.2 TWh through implementation of programmes aimed at improving the capacity and efficiency of NPP power units.

 

The selected private partner will also be responsible for reimbursing the cost of tender preparation to the initiators (a consortium of Swedish manufacturer Westinghouse Electric Sweden AB, Polish utility Polenergia International S.ar.l and the UK’s EDF Trading Limited) of the project.

 

The deadline for submission of the prequalification bids is estimated to be March 5, 2019, following which the qualified applicants have to submit their tender proposals by April 20, 2019.

 

The total duration of the PPP would be no more than 23 years and 3 months.