Thermal Energy Conservation Project (TECP)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 2969

Status Complete

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

Public

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 2969

Status Complete

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

Public

Environmental Category

Approval Date

08 Apr 1997

Disclosure date

07 Nov 1996

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The project enables the borrower to address urgent investment needs for the rehabilitation of the district heating networks in the cities of Buzau, Fagaras, Oltenita, Pascani and Ploiesti.

The project will:

increase significantly the heating systems' efficiency by reducing the fuel, heat and water losses, and support demand-side investments;
contribute to the implementation of a market-oriented regulatory framework in the heating sector and support the commercialisation of the heating companies; and
create environmental benefits by reducing the SO2, NOx, particulates and CO2 generated by the companies' heating production and distribution facilities.

Transition Impact

The project will:

contribute to the formation and expansion of small and medium-sized enterprises;
contribute to the implementation of a cost-based pricing of energy and effective collection of receivables;
support the implementation of a market-based system for regulating the sector and reduce the market distortions in the sector; and
improve effective corporate governance and speed up the transfer of market-economy management skills.

The Client

The borrower is Romania, and the beneficiaries and implementing agencies are the district heating companies operating in the municipalities of Buzau, Fagaras, Oltenita, Pascani and Ploiesti.

EBRD Finance

The proposed loan is US$ 45 million (ECU 36 million): 15 years' maturity and five years' grace period.

Project Cost

The total project cost is estimated at US$ 74.38 million (ECU 59.5 million).

Environmental Impact

The project was screened as B/0, requiring an environmental analysis. This was carried out for all five towns covered by the project by an independent international consultant. As part of the environmental due diligence, a quantitative analysis of air emissions for two scenarios was undertaken, comparing:

a business-as-usual scenario, i.e. the level of emissions if the system continues to operate without technical modifications but production increases to meet current heat demand, and
a least-cost scenario, i.e. the level of emissions following implemention of the rehabilitation programme and conservation measures to be financed under this project.

The analysis demonstrated that the project will have a positive environmental impact as it will significantly reduce air emissions.

All boilers will burn natural gas as the main fuel. The new boilers will comply with Romanian and European Union emission standards as shown below:

Air emissions from new boilers (mg/Nm3) Project

Particulates 5
Nitrous oxides 200
Sulphur dioxide 35

Air emissions from new boilers (mg/Nm3)EU standards

Particulates 5
Nitrous oxides 350
Sulphur dioxide 35

Other project components will be designed and implemented in accordance with applicable Romanian laws and good international practices.

The results of the environmental analysis were discussed with the local environmental authorities, who endorsed the conclusions presented by the consultants. Environmental and health and safety permits to commence construction and rehabilitation works have been issued by the Romanian regulatory authorities.

Technical Cooperation

Technical cooperation will focus on procurement, engineering design and a project management advisory service to ensure that the project is properly implemented.

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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