A technical coordinating unit may be established at Naftogaz Ukraine to be in charge of establishing a fully modernized business plan based on the master plan for the modernisation of Ukraine's gas transport system.

The respective measure is foreseen in the draft of a joint declaration, which could be signed in Brussels on Monday, after an international investment conference on the modernization of the Ukrainian gas transport system.

"The European Commission, the government of Ukraine, and creditors will cooperate in seeking to establish a technical coordinating unit within Naftogaz Ukraine which would be in charge of the establishment of a fully modernized business plan, based on the Master Plan for the Modernization of Ukraine's Gas Transport System, and further technical proposals by Ukraine that would set out the timetable and sequence of work to ensure reliability and efficiency, as well as minimizing possible disruption of supplies to and through Ukraine," reads the draft declaration made available to Interfax-Ukraine.

The technical coordinating unit will oversee the work on the modernization of the Ukrainian gas transport system and contribute to elaborating arrangements for the funding of the modernization plan from international and Ukrainian lenders, and possible donors.

The European Commission and the International Financial Institutions, in turn, are ready to consider technical assistance to the technical coordinating unit.

The European Commission will consider providing assistance to the government of Ukraine for the practical implementation of gas sector reforms.

It is noted that the international financial institutions and lenders will start due-diligence work on the projects identified in Ukraine's gas transport system master plan as soon as the technical coordinating unit is in place.

Subject to the results of this due-diligence, the European Commission may provide support through the Neighbourhood Investment Facility or other appropriate funding sources if this is necessary to help levering loans from international financial institutions.

Other partners that intend to provide grants and loans for the modernisation of Ukraine's gas transport system should be encouraged to supply detailed information to the technical co-ordinating unit on their readiness and the possible level of their financial participation.


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