Energy Objects Protection: Are NPPs and HPPs Ready for Russian Attacks?

On August 26, Russia carried out the largest attack on Ukraine’s energy infrastructure. Enemy-launched Shahed drones and missiles damaged objects in 15 oblasts causing power outages in many regions of the country. Fortunately, the Russians failed to hit the Kyiv HPP.

Each new attack on power facilities increases the likelihood of blackouts in winter. The DOZORRO project of TI Ukraine has studied procurement of energy equipment in Ukraine to be prepared for the worst-case scenario. This time, experts analyzed what Energoatom and Ukrhydroenergo are doing to prevent blackouts: how they procure constructions works of protective structures for the most important energy infrastructure objects.

Overall statistics

We have selected all procurement transactions where the title mentions anti-drone equipment or protective structures for NPPs and HPPs. The first such procurement transaction appeared on Prozorro in November 2022. In two years, there have been 135 procurement transactions, amounting to UAH 13.28 billion. They related to the development of project and estimate documentation, the purchase of materials for protection, the construction of protective structures, the arrangement of anti-drone systems and services for the technical supervision over such works by the project author. This may not be the entire amount, as some procurement transactions to protect critical infrastructure may not be published on Prozorro due to security reasons or other restrictions.

If the funds are distributed by areas, the development of the project and estimate documentation cost UAH 1.38 billion. UAH 10.92 billion was spent on materials, construction of protective structures, and arrangement of anti-drone protection. More than UAH 400 million was spent on engineering services, including technical supervision by the author. In addition, projects and their implementation worth more than UAH 530 million were ordered.

17 procurement transactions concerned nuclear power plants, their total value amounted to UAH 1.29 billion. The rest were covered the protection of hydroelectric power stations.

Ukrainian NPPs

There are four nuclear power plants in Ukraine: Rivne, Khmelnytskyi, South Ukraine, and Zaporizhzhia. The issue of protection now concerns only three of them, since the ZNPP is occupied by Russia.

Energoatom orders the construction of protective structures directly, and the details of contracts are classified for security reasons. This is possible due to the Resolution of the Cabinet of Ministers No.1178. It allows for the construction of protective structures during martial law without tender procedures so as not to disclose important information about the construction.

Almost all the works on the development of project documentation for the construction of protective structures at three nuclear power plants will be carried out by Building Industry Countryinvestbud LLC. Then the procuring entity entrusted it with the construction of these structures and the supervision by the project author.

Building Industry Countryinvestbud belongs to Yurii Romashko. Since 2020, the company has received orders for UAH 852 million, almost all of them were from PJSC Ukrnafta and SE NNEGC Energoatom.

Rivne NPP. According to our estimates, the total amount under Energoatom’s orders for the protection of this facility has already exceeded UAH 748 million.

The first procurement transaction for the Rivne NPP appeared on Prozorro in July 2023. At that time, Energoatom ordered the development of a project for the construction of a protective structure for UAH 17.8 million from Construction Industry Countryinvestbud LLC. In August, the procuring entity reported that this company was to build it for UAH 145.5 million by the end of the year. Almost a year later, the company got awarded a contract for another UAH 74.9 million, probably for additional works at the plant.

In late September, Energoatom reported on an agreement worth UAH 509 million for the design and construction of a structure of the 2^nd level of protection. The works are to be carried out by the Lutsk company Zakhidelectromontazh, which belongs to Ihor Rohal.

For reference: according to Ukrainian Energy ua-energy.org, there are three levels of facility protection:

the first level protects from debris;

the second level protects from drone strikes;

the third level protects from missile strikes.

Khmelnytskyi NPP. Less was spent on the protection of the Khmelnytskyi NPP—UAH 138.4 million.

The project documentation for it was also ordered in July 2023, the amount under the agreement was UAH 12.3 million. The contract for the construction of the protective structure was reported on in August of the same year. The cost of works is UAH 125.8 million. By the end of 2023, Construction Industry Countryinveststud LLC was to complete the construction.

South Ukraine NPP. The total amount under orders for the protection of this facility amounted to UAH 140 million.

The first procurement transaction was published in November 2022. An expert evaluation of the construction estimate was ordered worth UAH 36,000. In February 2023, South Ukraine NPP, a branch of NNEGC Energoatom, signed an agreement for works with Enerhoprombud LLC. They were to be completed by the end of April 2023 for UAH 31 million.

This year, in late summer, the media reported that the South Ukraine nuclear power plant had planned to purchase temporary protective structures at an inflated price of 20%. The temporary investigative commission of the Verkhovna Rada intervened in the case. The amount under the agreement was reduced from UAH 31.1 million to UAH 24.8 million.

In July 2023, Energoatom ordered the development of design documentation for the construction of a protective structure for nuclear power plants, worth UAH 18.3 million. Two months later, the procuring entity reported that Construction Industry Countryinvestbud LLC would build it for UAH 96.3 million.

Prozorro shows two more procurement transactions related to the protection of nuclear power plants. However, it is impossible to verify which object they concern, as the procuring entity has classified this information. At the end of last year, Energoatom reported on a contract with Construction Industry Countryinvestbud LLC for the development of project documentation to construct additional sections of protective structures for UAH 6.7 million. This February, the company launched the works in these sections. The cost of the order was UAH 252.9 million.

Hydroelectric power plants of Ukraine

There are ten stations in Ukraine on the Dnipro and the Dnister rivers: Kyiv HPP and Kyiv PSPP, Kaniv HPP, Kremenchuk HPP, Middle Dnipro HPP, Dnipro HPP-1 and Dnipro HPP-2, Kakhovka HPP (destroyed), Dnister HPP and Dnister PSPP. The largest are Dnipro HPP, Dnister HPP, and Kyiv HPP.

Unlike nuclear power plants, much more money was spent on the protection of hydroelectric power plants of Ukrhydroenergo. The amount under contracts exceeded UAH 12 billion, of which UAH 10.3 billion was spent on the arrangement of anti-drone protection and the construction of protective structures.

Dnister PSPP

The largest amount was allocated for the protection of the Dnister PSPP. Within two years, Ukrhydroenergo concluded 12 agreements worth UAH 4.68 billion. The most expensive of them is with Zhytomyr-based PE Elitbud-1 for UAH 4.2 billion. The structures to protect the main electrical equipment of the PSPP are to be built by the end of 2026. The founders of the company that got awarded the contract are Vasyl Boiko and Denys Boleiko.

Another UAH 247 million was spent on project documentation and arrangement of anti-drone protection.

Dnipro HPP-1 and Dnipro HPP-2

Dnipro HPP-1 and Dnipro HPP-2 come second in terms of the amount under contracts. In total, 23 agreements worth UAH 3.57 billion were concluded for these facilities. Since Ukrhydroenergo did not specify the branches during the procurement, we calculated the amount under the contracts of the two plants together.

The largest contract was awarded to Kyiv-based Garant Energo LLC. It is to build a structure to protect the HPP-1 for UAH 1.8 billion. The owner of Garant Energo LLC is Mykhailo Reva.

Another expensive procurement transaction was the order of 150 and 330 kV cables and couplings for the construction of a comprehensive underground protective structure for the main electrical equipment of the Dnipro HPP. It costs UAH 868.65 million. This procurement transaction was carried out under the open bidding procedure with features. Turkish company Altair Lojistik Ve Ticaret Anonim Şirketi was awarded the contract.

According to the Nashi Groshi (Our Money) program, this company is registered in Antalya. The owner is Andrejs Bradens, the first member of its board, a Latvian citizen living in the UK. The company is managed by CEO Hamza Kerim, a Turkish citizen. The company specializes in project management, logistics, and trade in machinery and equipment.

Kaniv HPP

In terms of the amount of funds spent, Kaniv HPP ranks third. To protect it, 25 agreements worth UAH 2.34 billion were concluded.

The largest amount under a contract is UAH 952.6 million. It was signed with Garant Energo for the construction of a structure to protect the electrical equipment of the HPP. 15 more agreements worth UAH 733 million were concluded to arrange anti-drone protection and the development of relevant projects.

Kremenchuk HPP

To protect the Kremenchuk HPP, 13 agreements were concluded, amounting to UAH 584.4 million. One of the largest construction contracts was concluded this August with the company Construction Company Adamant, the amount under the contract reached UAH 287.3 million. The owners of the company are Petro Levchenko and Roman Topazly.

Last September, Ukrhydroenergo began to report on contracts for the arrangement of anti-drone protection, the total cost of project documentation and works was UAH 268.1 million.

Dnister HPP

To protect this plant, 17 agreements were concluded worth UAH 334 million. The entire amount was spent on the installation of anti-drone systems and the development of project documentation for these works. The works are performed by a company from the Mykolaiv region—LLC Alliance. It is owned and operated by Myron Shumyk.

Kyiv HPP and Kyiv PSPP

To protect the Kyiv HPP and PSPP, 21 agreements were concluded amounting to UAH 372 million.  Since Ukrhydroenergo concluded several agreements for two plants together, we calculated the amount under all the agreements.

The largest contract for UAH 77.8 million was concluded in July 2023, and it concerned the development of design and estimate documentation for the construction of an underground protective structure. This August, Ukrhydroenergo reported on the adjustment of documentation for UAH 30.4 million as there was a need to increase the level of protection to the 3^rd one and perform additional works. However, the procurement transaction for the construction of this underground structure has not yet been published on Prozorro. Expenses for project documentation and anti-drone protection reached UAH 262.4 million.

According to Prime Minister Denys Shmyhal, Ukraine is currently implementing projects of the third level of protection at 22 Ukrenergo facilities; first, only one or two are to be completed to check their feasibility.

Middle Dnipro HPP

The lowest amount was spent on the protection of the Middle Dnipro HPP. 8 agreements were concluded, worth UAH 116.3 million.

The largest contract for UAH 36.73 million was signed in July 2023 for the development of project and estimate documentation to construct a protective underground structure. This August, the adjustment of this documentation was reported for UAH 27.9 million. This is necessary to clarify the technical solutions for the 2^nd and 3^rd levels of protection according to the methodology of the General Staff of the Armed Forces of Ukraine. However, over the past two years, Prozorro has not published any procurement transaction of works for the construction of an underground structure.

The matters with anti-drone protection are more successful. In addition to ordering project documentation, the Middle Dnipro HPP signed an agreement for the performance of works for UAH 4 million with MVP Energorishenia LLC. The same company arranged protection for other plants, in particular the Kremenchuk and the Kaniv hydroelectric power plants.

The analysis indicated that many more resources were spent on the protection of hydroelectric power plants compared to nuclear power plants. Ukrhydroenergo concluded agreements to protect hydroelectric power plants worth more than UAH 12 billion, while Energoatom concluded agreements worth only UAH 1.29 billion. It is unknown whether this will suffice to reliably protect three nuclear power plants with a total capacity of 7835 MW, which accounts for about half of the electricity produced in Ukraine.

The statement of the president of Ukraine at a meeting of the UN Security Council about Russia preparing a strike on Ukrainian nuclear power plants only reinforces concerns about the insufficient level of protection. If one of these plants gets attacked, the consequences can be catastrophic: radiation leakage, environmental problems, power grid shutdown, and humanitarian crisis.

This publication was prepared with the financial support of the European Union. Its content is the sole responsibility of Transparency International Ukraine and does not necessarily reflect the views of the European Union.