USAID’s Ukraine Energy Privatization Support Project
Name: USAID’s Ukraine Energy Privatization Support Project
Deputy Project Director: Yuri Kubrushko
Senior Economic Expert: Oleksii Romanov
Senior Financial Expert: Olga Gruzhinskaya
Senior Legal Expert: Oleg Dovzhenko
Client: Deloitte Touche Tohmatsu EMG
Funding source: USAID
Duration: 1999-2003
Description: support to the Government in privatization of power distribution companies, improvement of overall market and regulatory framework in energy sector
Tasks/activities performed:
- development of the privatisation strategy for power distribution and generating companies
- due diligence of power distribution companies
- preparation of the investment memorandums
- preparation of the debt restructuring strategy for fuel and energy sector and debt restructuring conditions for Oblenergos’ debt to the Wholesale Electricity Market
- addressing privatization barriers and increase of the investment attractiveness of energy companies, participation in drafting relevant legal and normative acts
- improvement of the Wholesale Electricity Market regulatory framework and tariff system, development of new tariff methodology for privatized Oblenergos
- organization of two tenders for the selection of investment bank to provide transaction (sales) advice to the State Property Fund
- organisation of investor marketing campaign and road show to London, liaison with potential investors (Union Fenosa, EDF, AES, Kansai, Synergy, Bewag, etc.)
- advice to the State Property Fund on holding privatization tenders for Oblenergo privatization, drafting tender procedures and documentation, including privatization conditions and investor prequalification criteria
- participation in drafting purchase-sale agreement for the Oblenergo shares
- advising on corporate governance and regulatory issues in the course of bankruptcy of Dniproenergo power generating company
- advising on introduction of the Partial Risk Guarantee program developed by the World Bank and EBRD to mitigate investor risks
- active participation in several working groups organized by the Government of Ukraine and the International Power Sector Task Force chaired by EBRD.
