Translated version of this PSD: Latvian
EBRD is considering extending a loan of up to EUR 4 million to the Salaspils District Heating Company ("SDHC"), which is wholly owned by the City of Salaspils (population 23,000), to finance demand side energy efficiency investments in six residential apartment buildings (the "Project"). It is envisaged that the Project will benefit from a European Union grant administered by the Latvian Development Agency ("Altum").
The Project will help conserve energy, reduce carbon emissions and encourage the use of energy performance contracts to bring energy efficiency gains.
The expected transition impact of the Project will be derived from two main sources:
Setting Standards: The Project will reduce wasted CO2 emissions. Benchmarks will be identified during due diligence and will focus on a reduction in energy consumption and CO2 emissions in the upgraded buildings.
Demonstration Effect of New Products and Processes: SDHC will enter into energy performance contracts with housing associations, which could be replicated by other entities (either publicly or privately owned) such as district heating companies, housing maintenance companies, etc.
SDHC will be the borrower, manage the energy efficiency investment process and on-lend the proceeds to apartment buildings.
EBRD Finance Summary
Up to EUR 4.0 million for energy efficiency investments.
Total Project Cost
Total capital expenditure costs will be EUR 4.0 million net of VAT, taxes and technical co-operation.
Environmental and Social Summary
The project has been categorised B. Environmental and Social Due Diligence ("ESDD") will be carried out by independent consultants and include an Environmental and Social Assessment of the Project, against the 2014 EBRD Performance Requirements ("PRs"), to identify its environmental and social risks, impacts and benefits and to structure the Project to comply with the PRs. ESDD will include an assessment of the environmental and social management system of the Company and its capacity to mitigate the potential environmental and social risks and carry out the project in line with the PRs.
The Consultants will also review the Priority Investment Programme prepared by the Company and evaluate the proposed energy efficiency improvements in the apartment buildings.
An Environmental and Social Action Plan ("ESAP") based on the findings of the above ESDD may be required.
This PSD will be updated once the ESDD is completed to summarise the outcomes.
Full financial, technical and environmental and social due diligence will be carried out. This technical co-operation will be funded from the Framework for Municipal Services for Project Preparation in the EBRD Advanced Transition Countries and will be financed by the Government of the Slovak Republic with a budget of up to EUR 75,000.
No post signing technical co-operation assignments are currently planned but the need for postsigning technical co-operation will be assessed during due diligence.
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.
Company Contact Information
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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