Ukraine Energy Support Fund

How does the Ukraine Energy Support Fund work?

Explaining the process - step by step

Ukraine Energy Support Fund - Quarterly Report

The Energy Community Secretariat, as the fiduciary of the Fund, provides the donors a quarterly report on the procured and delivered goods, including details on the disbursement activities. 
 

Summary of Quarterly Report 4Q/2022

Until the end of December 2022, the tranferred grants amount to approx. EUR 136 million. The largest donation was made by KfW, totalling EUR 99.5 million. The seven Ukrainian energy companies requesting and benefitting from the supply of the items are mostly active in electricity and gas distribution.

How to contribute to the Fund?

Contributions to the Fund are generally based on a Grant and Fiduciary Agreement to be concluded between the donor, the Energy Community Secretariat and the Ministry of Energy of Ukraine. The Energy Community Secretariat provides templates of such agreements to any interested donor. They can be further adapted by the donor to cater for their specific requirements and expectations. Based on the Grant and Fiduciary Agreement, the donor transfers the grant to the Special Purpose Account.

Can donors direct their contribution to a particular purpose or type of energy company?

Donors are able narrow down the general list of companies eligible for disbursements maintained by the Ministry of Energy of Ukraine. They can also exclude certain usages and/or earmark their contribution for a specific purpose and/or type of company. Contributions of donors which choose not to earmark their donations will be used to finance the most urgent needs as identified by the eligible companies and confirmed by the Ministry of Energy of Ukraine and independent international experts. Disbursements can be attributed to individual donors.

What types of purchases are eligible to be covered by the fund?

• Equipment, spare parts, other gear etc.
• All types of fuels needed to generate heat and electricity as well as the purchase of electricity
• Services such as repairs or reinforcements
• Capital inflow
• Ancillary costs such as transportation

Can donors earmark their contribution for a particular purpose or energy company?

Donors are able to earmark their contribution for a specific purpose and/or narrow down the list of companies eligible for disbursements maintained by the Ministry of Energy of Ukraine. Contributions of donors which choose not to earmark their donations will be used to finance the most urgent needs as identified by the eligible companies and confirmed by the Ministry of Energy of Ukraine and independent international experts. Disbursements can be attributed to individual donors upon their request.

How does the procurement of goods and services take place?

To ensure utmost transparency and efficiency, the procurement of equipment, fuels or services is conducted by independent procurement agencies. The procurement process is limited in time to respond to Ukraine’s energy sector needs as quickly as possible. The procurement process is overseen by the Energy Community Secretariat as the fiduciary of the Fund.

What safeguards are introduced into the scheme of the Fund?

Before any disbursement is made, independent international experts will assess the necessity, usefulness and urgency of any support request, as well as the lack of capital by the requesting company on which basis the Ministry will approve or reject the request. Disbursed grants go directly to the provider of needed equipment, fuel, services, and do not pass through a Ukrainian energy companies’ or the Ministry’s accounts. The procurement procedure is outsourced to reputable independent experts. The Secretariat acts as fiduciary of the grants, and disburses them strictly in line with the provisions of the agreements and is subject to strict accounting, reporting and auditing rules. 

Concerns with how the Funds are spent?

The Energy Community Secretariat as fiduciary of the Ukraine Energy Support Fund is committed to ensuring the highest standards of conduct in the delivery of support to Ukraine. The Ukraine Energy Support Fund has been designed to include a number of safeguards to prevent abuse in its implementation. Nevertheless, we are committed to follow-up on any information indicating possible abuses.

Please notify any suspicion of irregularities, including but not limited to diversion and misuse of support, fraud, corruption, money laundering immediately to [email protected].

Full confidentiality of your submission is ensured by the Energy Community Secretariat.

How to become a supplier of needed items?

In order to channel equipment offered by different suppliers, the Secretariat has set up a vendor’s questionnaire on its website. Prospective suppliers whose offer matches certain types of equipment are invited to express their interest via a two-step procedure:

• In order to express one's interest, the potential supplier should first fill in the below vendor template and provide information on the available items/services.
• As a next step, the consolidated template should be submitted via online questionnaire.

Ongoing procurements

Tetra Tech ES, Inc., acts as procurement agent for the Ukraine Ministry of Energy and the Energy Community Secretariat. Whilst it selects the supplier and negotiates the terms and conditions of the Supply Agreement, the Energy Community Secretariat, acting as manager of the Fund, is responsible for the payment of the said goods and/or services.

Closed calls for tender

Below the list of closed tenders conducted in the framework of the Ukraine Energy Support Fund procurement.