Kaliningrad District Heating Project Phase 2

Location:

Russia

Project number:

44171

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Status:

Cancelled

PSD disclosed:

06 Feb 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing financing to MUE Kaliningrad Teploset, a municipal district heating services provider in Kaliningrad City (the “City”) within the Kaliningrad oblast (the “Oblast”), to upgrade district heating infrastructure in the City. Implementation of the project will result in a reduction in operating costs as well as CO2 emissions and make the district heating system more energy efficient.

Transition Impact

Transition impact is expected to be achieved through:

  1. introduction of a service agreement to further commercialise the operations of the Company;
  2. support the further expansion of demand side measures and meter based billing.

The Client

MUE Kaliningrad Teploset is a municipal company operating in Kaliningrad and wholly owned by the City. The Company provides district heating services to both residential and industrial customers in Kaliningrad.

EBRD Finance

Senior loan of up to RUB 400 million to the Company, backed by a financial guarantee issued by the City. The loan is proposed to be co-financed by a capital grant from the Northern Dimension Environmental Partnership in the amount of €5 million.

Project Cost

RUB 880 million. 

Environmental Impact

Categorised B. The environmental and social due diligence is ongoing.  The project is mainly associated with long-term positive environmental benefits as the investment will help to reduce the use of energy and water, reduce emissions into the air by switching from heavy fuel to gas and improve reliability of the services. Short-term impacts may be associated with the construction phase of the project and may include disposal of construction waste, increased dust and noise levels and removal and disposal of asbestos-containing materials.

The environmental and social due diligence on the previous project with the Company identified that MUE Kaliningrad Teploset was certified in accordance with the environmental management systems EMAS and ISO14001 in 2006. The Company has developed a Communication Strategy that covers most aspects of providing information to stakeholders. Currently any interruption of services due to repairs or construction is announced in media and members of the community can submit grievances.

The Company has been submitting satisfactory annual environmental and social reports on previous transactions.  The existing ESAP will be updated to take into account any new and ongoing impacts and agreed with the Company.

Technical Cooperation

Pre-signing: 

  1. Feasibility Study: to develop a comprehensive study for the modernisation of the district heating system operated by the Company in order to allow for an environmentally beneficial, cost-efficient heat supply. €150,000, financed by the SIDA-EBRD NDEP Consultancy Account for Russia.

Post-signing: 

  1. Project Implementation Support: to support the PIU and subsequently the design, procurement and management of implementation of the investment programme and related activities throughout the duration of the Project. €855,000, financed by the SIDA-EBRD NDEP Consultancy Account for Russia.
  2. Preparation of the City energy efficiency study as well as the Service Agreement between the Company and the City. €100,000, to be financed by an international donor.
 

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

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