Consistent with the specifications of the Terms of Reference (ToR), the overall objective of the present project is to support Ukraine in its implementation of the Energy Strategy. It is important, therefore, that the project staff provides the necessary assistance, skills, knowledge, procedures and systems that will ensure the detailed and practical development, application and monitoring of the necessary policies, legislation, regulations, rules and activities for implementing the strategy. This is consistent with the ToR-stipulated purpose of the project, which is to provide capacity development to the Ministry of Fuel and Energy (MoFE) for managing, implementing, reporting and monitoring the budget support programme.
In the context of the above objective and purpose, there are a number of specific actions that must be undertaken by the project to ensure that the objectives are achieved. Key among these are the following:
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Ensure that maximum effective use is made of the significant work undertaken to date both by MoFE staff and others under EU and other donor-funded technical assistance programmes;
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Develop performance monitoring systems that are consistent with the effective implementation of the budget support programme and also MoFE’s broader duties and functions;
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Simultaneously ensure that the monitoring systems generate the requisite information and with the agreed methodology for more general monitoring of European aid, as developed under the EU-funded project "Support to Partnership and Cooperation Agreement" (PCA Project);
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Work in a proactive, responsive, flexible and cooperative manner with MoFE and other stakeholders, such as NERC and NAER, to ensure that all relevant facts and ongoing activities are taken into consideration;
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Provide concrete, focused, specific and feasible advice for the various elements of the project scope to maximise the probability of their acceptance and implementation in practice; and
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Ensure an effective transfer of knowledge and skills to MoFE staff through formal and informal (i.e. on-the-job) training thereby ensuring maximum project impact, heightened sensitivity to monitoring and performance issues, and improved capacity to monitor, refine, further develop and enforce the policy framework and procedures governing the Ukrainian energy sector, beyond the duration of the present project.
On the 28 September the decision was made to extend its operational implementation of the ESBS Programme. To continue further support to the ESBS Programme the decision was made to extend the implementation of the ESBS Project as well. Taking into account the new developments in the energy sector cooperation between the EU and Ukraine and new tasks ahead of the Project Beneficiary and other stakeholders the new Project Work Plan has been developed. The Work Plan activities are divided by designed components.
It is foreseen that the technical assistance to the Ministry of Energy and Coal Industry will cover following areas:
a) capacity building in the Ministry of Energy and Coal Industry,
b) provision of ad-hoc advice on specific issues related to fulfilment of indicators for the budget support programme,
c) ad-hoc assistance related to implementation of the provisions of the EU-Ukraine Joint Declaration on modernisation of Ukraine's gas transit network signed on 23 March 2009;
d) support on preparation of the mid-term external evaluation of the budget support operation to check the overall validity of the monitoring system and of the disbursement criteria for the next tranches;
e) ensuring proper communication and visibility of the action.
The project extension is described, in general terms, as continuation of the ESBS Project, concentrating on providing support to the Ministry of energy and coal industry in re-evaluation and implementation of the Energy Strategy of Ukraine in particular with view of implementation of Ukraine's Accession Protocol to the Energy Community and Ukraine's cooperation with and accession to the ENTSO-E. Further support is to the SAEEEC in the preparation of the NEEAP, with a view of completing the document for adoption.
Project components and expected results:
In addition to the above results, the project will also need to deliver the following:
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An IT architecture and harmonised data systems that are fully integrated into the systems of MoECI and which are designed having regard to an evaluation of current systems and software, and the needs of the budget support programme and MoECI staff;
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The provision of effective support to JMG and associated technical working groups to ensure that their functions and responsibilities are efficiently carried out and that key documents and summary reports are produced in a timely manner;
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An agreed, time-bound and comprehensive plan of detailed activities for the fulfilment of the budget support programme performance indicators and other related commitments (e.g. those arising from Ukraine’s imembership of the EnC), together with an unambiguous delineation of the roles, responsibilities and accountabilities of the various implementing parties; and
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The preparation and development of discrete gas transit / storage investment projects and loan packages to support the investment decisions of IFIs and/or other funding agencies to ensure that the projects materialise.
Finally, the achievement of several longer-term outcomes and benefits should be sought:
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Improved quality and focus of monitoring and sector coordination activities;
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Strengthened incentives for MoECI to conduct and use monitoring and evaluation;
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A formalised monitoring and evaluation system in MoECI leading to systematic reporting, monitoring and evaluation, with the findings used for the ministry’s budget planning, the management of its ongoing activities and evidence-based policy making;
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Accelerated adoption of the EU energy laws and other reforms consistent with Ukraine’s energy strategy and its commitments in the framework of EU-Ukraine cooperation; and
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Contribution to the overall energy policy targets of energy supply security, diversification and sustainability for Ukraine.