USAID/Ukraine - Energy Security through Competitive Energy Markets Program in Ukraine

The Government of Ukraine has received the joint loan from the International Bank for Reconstruction and Development (IBRD) and Clean Technology Fund (CTF) in the amount of US$ 378,425 million equivalent toward the cost of the Second Power Transmission Project (hereafter the Project) and intends to apply the part of the proceeds of this loan to payments under the contract for consultanting services. Owing the reforms that are currently being implemented in the SE "NPC "Ukrenergo", eurointegration prospects of the country and the country`s leadership course towards absolute
transparency within the operational activities of the state enterprise, the establishment of the Compliance Office is a crucial point. It will surely eliminate most of the risks, namely the discrepancies with the standards, norms and non-compliance with the requirements of the current legislation. It will strengthen the transparency within the company, aligning the processes with the best European practices of the internal control, ethics and countering corruption (e.g. OECD principles, ISO standard on compliance). The consulting company shall provide support to the SE “NPC “Ukrenergo” (UE) with the Compliance Office implementation which should correspond to the following stages: Gap-analysis of existing compliance related processes, rules and behaviors within the Company, based on interviews with the management board and key senior managers, in comparison with best practices, as well as recommendations for change and transformation with taking into account the early corporatization of the UE. Furthermore, evaluation of existing rules and principles imposed by the laws of Ukraine, rules and principles required by Energy Community
and European acquis, as well as non-discrimination of any third party using or willing to use the grid of UE. Preparation of a Compliance Policy, as well as the Action Plan for its implementation by the end of 2018 and other necessary internal documents (including the preparation of the first drafts, one round of these projects discussions and the finalization of documents). Development of TSO-specific compliance standards. TSO-specific compliance standards has to include the following three interrelated core values: confidentiality of data, transparency of information needed for a fair functioning of the electricity market and other core values required by Energy Community and European acquis. Finalization of all recommendations for the implementation and further transformation of the Compliance Office based on the previous stages of work agreed with the UE. Finalizing the Compliance Policy taking into account all remarks and requirements of the newly appointed Compliance Officer.