The proposed project is intended to improve the Iasi district heating infrastructure through investment in:
(i) rehabilitation of the distribution pipe network
(ii) rehabilitation of thermal substations
(iii) introduction of building level thermal modules at block level.
The project is also intended to improve the overall performance of the district heating system in the City of Iasi.
The proposed project will improve the performance of the district heating system through improved commercialisation of the municipal district heating company.
This will be supported by a corporate development programme to improve the commercial performance and standards of corporate governance of the Company, tariff structure reform and operating subsidies reform.
- A service agreement will be concluded between CET Iasi and the City providing for service and commercial performance standards to be achieved by the Company.
CET-Iasi, the municipal district heating company owned by the City of Iasi.
Loan of EUR 15 - 20 million to CET Iasi. It is expected that the loan will also be guaranteed by the City of Iasi.
Approximately EUR 25 -31 million.
The Project Sponsor commissioned a detailed Technical Feasibility Study, which also covered the requirements for the environmental audit including identifying applicable national and EU regulations. The proposed investment programme is aimed at the rehabilitation of the District Heating System and contains a compulsory environmental investment programme totalling up to EUR 31 million to bring the Company into compliance with the EU Directives, transposed into the Romanian environmental legislation. The report contains a number of scenarios for assessing the impact of the investment programme on the reduction of CO2 emissions.
The baseline scenario estimates that without the rehabilitation the greenhouse gas emissions from existing plants would be about 852,543 tonnes per year. After the rehabilitation with EUR 31 million, it is estimated that the GHG emissions would be about 833,378.3 tonnes of CO2 per year. The Company has also developed and agreed with the National Environmental Protection Agency a compliance plan outlining various technological measures for environmentally improving fuel burning and limiting pollution emissions into the air, monitoring of waste water and replacement of pipes.
The organisational structure of the Company incorporates the Quality Assurance and Environmental Protection, Health and Safety and the Fire Prevention Units, which report directly to the general manager. The Company is also planning to introduce the ISO 14000 Environmental Management System.
The Swiss government has already provided EUR 149,100 for a Feasibility Study for the project.
It is expected that further Technical Co-operation assistance will be provided to assist CET Iasi in institution-building and training component in support of a corporate development programme.
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