USAID ESP helps the Ukraine Energy Support Fund to procure equipment

Since April 2022, the USAID Energy Security Project (ESP), acting as an independent procurement agent under the Ukraine Energy Support Fund (UESF), has helped to procure and provide equipment to meet the urgent needs of Ukraine’s energy sector to rebuild and repair infrastructure damaged by Russia’s attacks.

Photo by the Energy Community Secretariat.

USAID ESP provides the procurement services gratis as an in-kind technical assistance contribution from USAID, working in close collaboration with the Energy Community Secretariat (EnCS) and the Ministry of Energy of Ukraine.

Between January 1 and June 30, 2023, 53 purchase agreements have been concluded under the UESF, with equipment covered by 43 Purchase Agreements to 20 Ukrainian companies delivered.

By the end of June 2023, UESF had accumulated over 165 million euro from 14 donors since the Fund’s establishment in April 2022.

The Fund finances the most urgent needs of Ukrainian energy companies, such as generators, power transformers, switches, and other equipment, spare parts, technical items, fuel, and services to repair infrastructure and maintain energy and heat supply in Ukraine.

Most Ukrainian companies and organizations requesting support through the Fund work in electricity distribution (33%), combined heat and power generation (33%), and gas distribution (19%). The aid provided to Ukrainian energy enterprises to repair the damaged facilities will help to supply power and heat to millions of Ukrainians during the upcoming winter.

To respond rapidly to the pressing needs of Ukraine’s energy sector, the Energy Community Secretariat and USAID ESP have streamlined the procurement processes for the Fund’s operations. All support requests undergo a verification process by the Ministry of Energy of Ukraine and the USAID ESP procurement team to ensure the applicants adhere to the funding requirements regarding necessity, urgency, the absence of alternative financing, and prioritization.

USAID ESP collaborates with Ukrainian energy companies throughout the procurement process to define technical specifications, assess bids, and negotiate the supply contracts signed by the Fund’s beneficiaries and suppliers. With its procurement expertise, the USAID Energy Security Project has increasingly utilized limited competition or direct contracting, enabling considerable time savings and ensuring optimal value for the money.

As an example of a recent procurement, equipment procured for Gas TSO of Ukraine (GTSOU) – five automatic gas distribution stations (AGDS) worth 7.6 million euros – will secure gas supply during the next heating season.

The Secretariat and USAID ESP work closely with the Ministry of Energy of Ukraine swiftly and efficiently to help Ukrainian companies continue operating and providing vital power and heat to the Ukrainian people. More information about USAID ESP activities with UESF is available via the link.