Business news from Ukraine

DONBASENERGO PLANS TO COMPLETE AUTOMATION OF MAINTENANCE OF SLOVIANSK TPP

PJSC Donbasenergo by July 2020 plans to complete the introduction of the single automated system to manage the key assets of Sloviansk thermal power plant (TPP). The company said that the system allows general effectiveness of business management.
The natural obsolescence of the key production assets of the TPP, which celebrated its 65th anniversary last year, leads to an increase in the number of breakdowns, malfunctioning of the equipment fleet and, as a result, expenditure growth.
The implemented module of the plant’s resource management and statistical analysis will help reduce the number of restoration repairs. Based on the available scheduled preventive repairs statistics, the economic feasibility of using equipment is determined, a decision is made to continue the operation of the old equipment or purchase new one, the company said in the release.
Donbasenergo owns Starobesheve (located in the occupied territory) and Sloviansk TPPs with a total installed capacity of 2,880 MW, in particular Sloviansk TPP’s capacity is 880 MW. At the end of March 2017, the generation company announced the loss of control over the operation of Starobesheve TPP, as well as part of structural units located in the temporarily uncontrolled territory.

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DONBASENERGO PAYS UAH 701.5 MLN OF TAXES IN 2019

PJSC Donbasenergo in 2019 paid UAH 701.5 million of taxes and other mandatory payments to the national and local budgets, the press service of the company has reported. Thus, UAH 665.7 million of VAT, environmental tax, the royalty for the use of water resources and other taxes was paid to the national budget. Some UAH 35.8 million (land tax, property tax and other taxes) was paid to the local budget.
The company said that according to the Tax Code, starting from July 2019 Donbasenergo as an electricity generating company paid UAH 80.8 million of the excise duty, which is set at 3.2% of the cost of each kWh of electricity generated.
Donbasenergo owns Starobesheve (located in the occupied territory) and Sloviansk TPPs with a total installed capacity of 2,880 MW, in particular Sloviansk TPP’s capacity is 880 MW. At the end of March 2017, the generation company announced the loss of control over the operation of Starobesheve TPP, as well as part of structural units located in the temporarily uncontrolled territory.
PrJSC Energoinvest Holding owns a 60.86% stake in Donbasenergo, another 25% is owned by the state.

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DONBASENERGO COUNTS ON IMPROVEMENT OF RULES ON POWER MARKET

PJSC Donbasenergo counts on continuation of initiatives of the regulator, profile ministries and the Verkhovna Rada committee to introduce the best global practices in the operation of the new electricity market, which would allow stabilizing the operation of electricity generating companies. According to a press release of the company, Donbasenergo notes the importance of the initiatives already implemented regarding price adjustment in the balancing market, which made it possible to provide this service without incurring losses.
“At the same time, the market situation for electricity generating companies remains difficult, in particular, only in December, the company’s losses amounted to UAH 130 million,” the company said.
Donbasenergo expressed the hope that the Ministry of Energy and Environment Protection, the regulator, the Verkhovna Rada committee on energy, housing and utilities will continue implementing the best global practices, and companies operating in the electricity generation market will be able to avoid artificially lower prices as well as unprofitable work in the future,” the company said in the press release.
Donbasenergo operates Starobesheve (located in the occupied territory) and Sloviansk thermal power plants (TPPs).
PrJSC Energoinvest Holding owns 60.86% of shares in Donbasenergo, and the state holds 25% of the shares in the company.

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DONBASENERGO INVESTS OVER UAH 22 MLN IN SOCIAL PROJECTS

Donbasenergo has been focusing considerably upon social and economic development in
the area where there is Sloviansk TPP, a town-forming undertaking of Mykolaivka United
Territorial Community, keeping up its growth strategy as socially responsible business.
UAH 22 million of out-of-pocket expenses was placed by Donbasenergo in
development of design specifications and estimates, procuring for the state expert
appraisal of projects, along with design and survey works within the ambit of cooperation
with Mykolaivka United Territorial Community in 2016-2019.
Thus, a master plan shaping the progression of Mykolaivka was developed in 2017,
including the area zoning plan awarded a positive opinion from experts in 2018. Detailed
territorial plans for four sites have been rendered complete. There were over UAH 1
million Donbasenergo's investments.
One of the community vital projects undertaken on a turnkey basis in 2017 was the
sports ground of the comprehensive school No. 3 of Mykolaivka. The company has put
UAH 1.6 million in it.
Donbasenergo's resources were used in the full-scale renovation projects of the
infectious diseases department of the Central District Hospital and Polyclinic drafted in
2018, also covering the construction of the town temple. Today, the construction of St.
Spiridon's temple is already broadly underway.
For more than 2.5 years, a Memorandum of Understanding and Cooperation has
been in place between PJSC Donbasenergo and Mykolaivka Municipal Council, under
which priority areas for the development of the partnership have been identified: the
reconstruction of utilities infrastructure, overhaul of roads and lighting networks, amplified
facilities, public service & resources inflows in school and pre-school educational
institutions. The Energy Provider has undertaken to develop design specifications and
estimates for priority projects in respect of Mykolaivka United Territorial Community.
In 2019, Donbasenergo prepared projects for the reconstruction of municipal school
No. 1, boarding school, Avanhard town stadium, as well as reconstruction and landscaping
of the town park along Lesi Ukrainky Street totalling UAH 5.2 million.
The population of Mykolaivka United Territorial Community is 17 thousand people,
25 % of whom are children and teenagers, 55 % are of working age, and 30 % are the
elderly.
For reference: As of December 01, 2019, 60.86 % holder of PJSC Donbasenergo is
ENERGOINVEST HOLDING Private Joint Stock Company, 25 % + 1 share are held by the
state represented by the State Property Fund of Ukraine, 14.14 % holders are other
minority shareholders.
PJSC Donbasenergo unites two power plants: Sloviansk and Starobeshevo TPP
(the latter has been located in the territory beyond the control of Ukraine since 2014).
Since March 2017, due to the suspension of management, annual performance indicators
of assets located in the temporarily occupied Donetsk region are not included in
Donbasenergo records of accounts.
The installed capacity of Sloviansk TPP is 880 MW.

DONBASENERGO TO IMPLEMENT SEVERAL SOCIAL PROJECTS IN MYKOLAIVKA UNITED TERRITORIAL COMMUNITY

Donbasenergo, abiding by socially responsible business concepts, has planned new socially and economic development initiatives for 2020-2021 to be implemented as part of collaboration with the Mykolaivka United Territorial Community.
Now, pursuant to PJSC Donbasenergo and Mykolaivka’s 2017 Memorandum of Understanding and Cooperation, the energy company undertook to develop design specifications and estimates of priority projects for the Mykolaivka Community.
The design works for the construction of an indoor arena with a 20 x 40 m mini-football field on Lesi Ukrainky Street, which started in 2019, will be completed in 2020. Consideration is being given to designing an indoor all-season hockey field over time and arranging it on the site of the existing winter arena, next to the Energetik Sports Centre.
Next year, projects will be implemented on Shkilnyi Provulok (lane), Sviatomykolaivska Street, Muzychna Street of Mykolaivka to overhaul external lighting networks. The total amount of design work for these projects prepared by Donbasenergo is UAH 0.4 million. NEFCO International Finance Organization provides the funding for implementing them.
Over UAH 1 million was Donbasenergo’s cost of developing projects to improve Mykolaivka’s transportation infrastructure. Major repairs are expected on the road surface on Sichovykh Striltsiv Street (from Voiniv Internatsionalistiv Street to Petrenka Street), along Myru Street (from Yevropeiska Street to the Central District Hospital), on Lesi Ukrainky Street (from Mykolaivska Street to Svieshnykova Ploshcha (Square)), on Yevropeiska Street (from Myru Street to Lesi Ukrainky Street.) The projects will be spinned up through a subvention from the State Regional Development Fund.
Major repairs are expected in the infectious diseases building of Sloviansk Central District Hospital (Mykolaivka, 13 Myry Street), Mykolaivka I-III stage comprehensive school No. 1 (4 Synetskoho Street) and preschool educational institution No. 43 of Mykolaivka on 43 Myry Street.
SE Ukrderzhbudekspertyza’s Pytna Vodytsia (Potable Water) project on the rehabilitation of the centralized water supply system to meet the demand for Mykolaivka potable water is also ready for deployment.
PJSC Donbasenergo is now at the forefront of Donbas’s revival and is developing business that will mould the East of Ukraine’s future and help address the present-day economic challenges.
For reference: As of November 01, 2019, 60.86 % holder of PJSC Donbasenergo is ENERGOINVEST HOLDING Private Joint Stock Company, 25 % + 1 share are held by the state represented by the State Property Fund of Ukraine, 14.14 % holders are other minority shareholders.
PJSC Donbasenergo unites two power plants: Sloviansk and Starobeshevo TPP (the latter has been located in the territory beyond the control of Ukraine since 2014). Since March 2017, due to the suspension of management, annual performance indicators of assets located in the temporarily occupied Donetsk region are not included in Donbasenergo records of accounts.
The installed capacity of Sloviansk TPP is 880 MW.

DONBASENERGO SIGNS CONTRACT WITH CHINA DONGFANG ELECTRIC TO RECONSTRUCT ONE UNIT

PJSC Donbasenergo has signed a contract with Dongfang Electric International Corporation (China) for reconstruction of unit No. 6 of the Sloviansk thermal power plant (TPP) with its division into units 6A and 6B of 330 MW each.
According to the company’s press release, the cost of the contract for the reconstruction using CFB technology (the technology of coal combustion in a circulating fluidized bed) is $684.296 million.
According to the plan, unit No. 6A will be put into operation in July 2022, unit No. 6B in July 2023. The units will burn steam coal.
The project implementation will extend the life of thermal power plants by 40 years, increase their operation efficiency, reduce specific fuel consumption and maintenance costs. The new units will comply with all ENTSO-E technical requirements and the European environmental directives.
Reconstruction of unit No. 6 of the Sloviansk TPP will significantly reduce the cost of electricity produced, burn low grade coal without using natural gas in the load range of 40-100%.
Donbasenergo Director General Eduard Bondarenko said that efficiency of the units will be at least 42%. The company seeks to receive the funds for investment in the tariff for electricity transmission in the amount of 30%. The reconstruction will be financed using the loan from a Chinese bank by 70%.
Donbasenergo operates Starobesheve (located in the occupied territory) and Sloviansk thermal power plants.

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