Ukraine's Ministry of Regional Development, Construction and Housing and Communal Services and the World Bank have discussed the preparatory work for project, titled “Improving energy efficiency in the central heat supply sector of Ukraine.” The 350 million USD project is scheduled to start in the 2nd half of 2014,the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Funding of preparatory work is funded under the Clean Technology Fund program with a project implementation period of 6 years.

According to experts at the Regional Development Ministry, preliminary a draft feasibility study (FS) has been prepared for six public utility companies of Vinnitsa, Ivano-Frankivsk, Kamenetz -Podolsk, Nikolaev, Kharkiv, and Kherson. Feasibility studies for the companies of Dnipropetrovsk, Kirovohrad, Chernihiv and Donetsk currently on the waiting list.

Government analysts say preliminary estimates of World Bank representatives positively appraise the quality work undertaken by the Ministry of Regional Development on implementation of Clean Technology Fund grants and Development of Urban Infrastructure projects. International experts are pleased with their work with public utilities that will participate in the project in future, and note that preparations are made in accordance with the schedule agreed by the parties.

Experts say apart from this project, another undertaken is currently underway in housing and communal services (HCS) to iproving energy efficiency in the central heating supply sector of Ukraine. It also envisions financing of 350 million USD. The implementation period - 2014-2020.

The energy-intensive housing and communal services, according to experts, is a real Klondike for better economical use of energy resources. As government analysts point out, the implementation of 5 projects to modernize the industry for over 15 billion USD will start next year. These are projects of the International Bank for Reconstruction and Development, the European Bank for Reconstruction and Development, the European Investment Bank, et cetera. The government in the future will also expand cooperation with international financial and donor organizations.

As a result of the implementation of the HCS existing projects, according to government analysts, Ukraine can expect a 5% reduction in gas consumption by the Central heating company (Teplokommunenergo) enterprises in the upcoming heating season 2013-2014 - to 8.1 billion cubic meters. In the same heating period in 2012 Ukraine used 8.5 billion cubic meters. In particular, the lower natural gas consumption will be achieved by means of modernization of the heat generation and transportation systems (down 2.2 billion cubic meters) and the introduction of alternative energy sources (another 2 billion cubic meters).


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