Thermal Energy Conservation Project (TECP)

Location:

Romania

Project number:

2969

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

08 Apr 1997

Status:

Complete

PSD disclosed:

07 Nov 1996

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.

 

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

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.