|
EBRD finances district heating in Sofia
Rehabilitation of existing system will increase capacity to heat 900,000 people
The Bulgarian capital Sofia is to rehabilitate its district heating system with the support of the European Bank for Reconstruction and Development, realising energy savings worth many millions of Euro and helping provide the public with a more efficient heat service during cold winter months. The EBRD is contributing €30 million to the €114 million project. The World Bank is providing €26 million and Toplofikacia Sofia, a management company set up and owned by the Municipality of Sofia, will provide €26 million. A further €20 million has already been provided by the Kozloduy International Decommissioning Support Fund as part of its assistance to support energy efficiency in Bulgaria and it expects to allocate a further €10 million later this year. The EU Phare programme will give an additional €1.6 million in technical assistance and USAID $500,000. The EBRD loan will be to Toplofikacia Sofia and guaranteed by the Republic of Bulgaria. Work is expected to begin this year in West Zemliane and continue through next year across the city. The district heating system of Sofia serves approximately 900,000 residents. But years of under funding and inefficient maintenance means the current system is operating with leaks and faults, leaving Sofia unable to meet a growing demand for heating services. Work will include the replacement of 6,840 substations and 60 km of pipes. Peter Reiniger, EBRD Business Group Director for Energy, called this the largest energy conservation project ever undertaken in Bulgaria. He said that by upgrading and rehabilitating existing infrastructure, Sofia could reduce its energy consumption for district heating by more than 20 per cent, worth around €20 million per annum at current prices. The investments will also enable significant improvements in the quality of services provided to Toplofikacia's customers. Mr Reiniger described the project as an investment towards Sofia's long-term sustainable development.
|
