Zaporizhzhia Energy Efficiency Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

25 Jun 2013



PSD disclosed:

07 Dec 2011

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering providing a €12.5 million loan to finance the installation of new gas engine units for simultaneous co-generation of heat and electricity and the installation of individual heating stations at the building level in the district heating system of the city of Zaporizhzhia in Ukraine.

Transition Impact

The Project is designed to increase the overall efficiency of the district heating system in the city of Zaporizhzhia and focus on reduction of fuel consumption. The transaction will have significant demonstration effect for other cities and utilities in Ukraine concerning ways to improve energy efficiency of district heating operations and reduce fuel consumption. It will also increase the penetration of combined heat and power technologies for which there exists a substantial market potential in the country.

Through physical investments and the Corporate Development Support Programme, the Project will improve financial and operational performance of the Company. The Corporate Development Support Programme and other donor funded assistance will provide substantial training for the key staff of the Company enabling substantial market skill transfer.

The Client

The District Heating Company “Miski Teplovi Merezhi” (the “Company”), a municipal utility wholly owned by the City of Zaporizhzhia.

EBRD Finance

€12.5 million loan to the Company, secured by a guarantee of the City.

The project is expected to be co-financed by an up to €5 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P).

Project Cost

Up to €18.5 million.

Environmental Impact

The project was categorised B/1 in accordance with EBRD's 2003 Environmental Policy. The modernisation of an existing district heating system should bring about environmental benefits in terms of reduced water and heat loss. The environmental and social due diligence of the Project, consisting of the environmental audit as well as an environmental analysis of the Project was carried out by independent consultants within the Feasibility Study for the proposed Project. The due diligence is currently being finalised. There were no major issues identified and any adverse impacts are expected to be limited to short-term environmental, health and safety issues arising from construction works which can be adequately mitigated by taking environmental protection measures into consideration in construction planning and work practices. An Environmental and Social Action Plan (the “ESAP”), containing mitigation measures for identified issues, has been developed and is currently being reviewed by the Client. The Client will need to implement the ESAP and submit annual environmental and social reports to the Bank.

Technical Cooperation


Feasibility Study, which was done during 2011. The study covered analysis of alternative options, technical feasibility of the selected option, environmental impact assessment, economic and financial analysis. The assignment was financed by the Swedish International Development Cooperation Agency (Sida). Total cost was EUR 160,000;


  • Project Implementation and Management Support including procurement advice to the Project Implementation Unit and assistance to the Company to strengthen the Company’s implementation capacity (EUR 350,000 to be financed by Donors Fund TBD);
  • Assistance to the Company to prioritise further investment in the district heating system and to improve the commercial standing of the Company through a Corporate Development Support Programme (EUR 350,000 to be financed by Donors Fund TBD).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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