Project description
and objectives:
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The proposed project will consist of the rehabilitation of the district
heating network in the City of Kaliningrad. The key objectives of the project
are to
(i) improve energy efficiency in the district heating network through reduced
losses, and
(ii) ensure the commercial and financial sustainability of ME
Kaliningradteploset, the municipality-owned district heating company of
Kaliningrad through the adoption of best commercial practices, and sound
pricing and subsidy reforms. The project is expected to have major
environmental benefits, in particular through lower greenhouse gas emissions.
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Transition
impact:
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Implementation of a least cost investment programme will improve efficiency
and include a metering and control component that will allow consumers to
regulate their consumption and permit billing in line with actual consumption.
This will improve service levels and the long-term commercial viability of the
service. Tariffs will be set at cost-reflective levels and the subsidy system
reformed with a view to providing a social safety net for lower income groups.
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The client:
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The borrower will be the Russian Federation. The proceeds will be on-lent to
ME Kaliningradteploset through a subsidiary loan agreement mirroring the terms
of the sovereign loan. The Bank will enter into a Project Agreement with ME
Kaliningradteploset, and a Project Support Agreement with the City of
Kaliningrad.
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EBRD
finance:
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Sovereign loan of USD 12 million (EUR 11.2 million). To be co-financed with
a grant from the Northern Dimension Environmental Partnership (NDEP) of EUR
7.3 million (to be confirmed).
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Total project cost:
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EUR 20.8 million.
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Environmental impact:
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The project has been screened as B/1 requiring an environmental analysis to
determine current and potential future environmental impacts associated with
the project components as well as potential liabilities from past operations.
Energy efficiency improvements including heat loss reduction will be the main
benefits of the project. Due diligence will concentrate on environmental
issues characteristic to district heating projects (e.g., air emissions; waste
management; occupational health and safety).
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Technical
cooperation:
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Technical assistance of EUR 0.5 million for project preparation and
implementation is in progress and funded bilaterally by SIDA, Sweden’s
international development agency. Technical assistance of EUR 0.5 million for
institutional strengthening and management support is to be funded bilaterally
by SIDA.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Jane Kieran, Operation Leader: kieranj@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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