№ 4/2016

№ 4/2016

Nauk. pr. NDFI 2016 (4): 82–93

INTERNATIONAL FINANCES

KOLOSOV Ivan ¹

¹SESE “Academy of Financial Management”

World Bank funding Power Transmission Project in Ukraine

The issue of financing the Power Transmission Project by the World Bank is under investigation in the article. The main goal of the project is to increase the capacity of the national power grid during the electricity transmission and reduce its losses. Within the framework of the "Ukrenergo" project, seven substations in different regions of the country are to be rehabilitated, which will help reduce annual losses in the grid. The projects in the electricity sector are also aimed at improving the quality of electricity supply to ensure that the domestic industry complies with Western European standards. Improving electricity transmission network will increase the volume of Ukraine’s trade in electricity, including with the European Union. A key problem that requires urgent solution is unsatisfactory technical condition of the domestic energy sector, which continues to deteriorate due to aging fixed assets. Most of the generating assets and supply chains are worn out and ineffective; the majority of thermal power units have exceeded the limit of physical wear and need upgrading or replacing; most units of nuclear power plants are close to the end of the project lifetime. The study determines that the balance of power grid capacity in Ukraine is characterized by the deficiency of regulatory capacity, which leads to inefficient use of available resources and a high level of losses.

Keywords:international financial institutions, the World Bank, the financing of the energy sector, project financing.

JEL: F21, F34, F35.

Kolosov I. . World Bank funding Power Transmission Project in Ukraine / I. . Kolosov // Наукові праці НДФІ. - 2016. - № 4. - C. 82-93.

Article original in Ukrainian (pp. 82 - 93)

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