Reconstruction of the boiler house in the Saltivskyi district of Kharkiv

Sector
Municipal infrastructure and services
Stream
Reconstruction, major repairs, new construction, restoration, development, modernization (including supply of equipment and materials) of facilities and networks for the supply of thermal energy and hot water in the city of Kharkiv
Maturity level
94
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

At the end of the 20th and beginning of the 21st centuries, energy conservation and environmental improvement became priorities in global energy practice. The main directions for solving these urgent problems are improving the environmental friendliness of boiler plants and increasing the efficiency of fuel use in them.

The purpose of the reconstruction is to restore and increase the operational capacity of the facility by replacing worn-out equipment, installing high-efficiency water-heating boilers, modernizing auxiliary systems, and improving the overall thermal efficiency and reliability of heat supply. The project also includes the modernization of buildings, restoration of structures, integration of modern automation and dispatching systems, and adaptation to safety requirements and environmental standards. The proposed investment is particularly relevant in the context of infrastructure restoration.

Therefore, the Project aims not only to increase energy efficiency and reduce fuel consumption, but also to strengthen the resilience of critical infrastructure in support of urban stability and social protection.

Main reconstruction measures:

  • replacement of boilers with modern high-efficiency water heating models;
  • replacement of auxiliary equipment and materials, in particular pumping equipment, chemical water treatment systems, electrical equipment, lighting, etc.;
  • replacement of chimneys;
  • replacement of entrance doors and window openings;
  • repair of the roof;
  • updating the exterior finish of the boiler house building;
  • reconstruction of the external power supply system with connection to the existing transformer substation substations. 

This project is a duplicate in the DREAM system for the project  DREAM-UA-010725-9BAE6118 "Reconstruction of the boiler house in the Saltivskyi district of Kharkiv".

The purpose of the project

Main Goal:

Increasing compliance with modern standards

Secondary Goal:

Capacity building, Rebuilding the damaged/destroyed, Improving the equality of wealth distribution, Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Improving the quality of services

Description of the purpose of the project and ways to achieve it

The purpose of the reconstruction is to restore and increase the operational capacity of the facility by replacing worn-out equipment, installing high-efficiency water heating boilers, upgrading auxiliary systems, and improving the overall thermal efficiency and reliability of heat supply. The project also includes building modernization, structural restoration, integration of modern automation and dispatching systems, and adaptation to safety and environmental standards. The proposed investment is particularly relevant in the context of infrastructure restoration. Therefore, the Project aims not only to increase energy efficiency and reduce fuel consumption, but also to strengthen the resilience of critical infrastructure to support urban stability and social protection. The main reconstruction activities: replacement of boilers with modern high-efficiency water heating models; replacement of auxiliary equipment and materials, including pumping equipment, chemical water treatment systems, electrical equipment, lighting, etc.; replacement of chimneys; replacement of entrance doors and window openings; roof repair; updating the exterior finish of the boiler house building; reconstruction of the external power supply system with connection to the existing transformer substation.

Problems and solutions resulting from project implementation

Increasing the efficiency of thermal energy production and reducing fuel consumption. Ensuring real-time control of technological processes, monitoring of operating parameters and rapid response to emergency situations by implementing an automated dispatch control and monitoring system with integration into the central dispatch center. To ensure reliable heat supply to consumers in the boiler room, the installation of modern gas-fired boilers is planned.

Socio-economic context

Indicator

Value

Number of employees of the institution/institution/organization

16 human

Number of people who will use the service

7239 human

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

District Heating

Stream

Reconstruction, major repairs, new construction, restoration, development, modernization (including supply of equipment and materials) of facilities and networks for the supply of thermal energy and hot water in the city of Kharkiv

Strategic document

Регіональна стратегія розвитку

Task

11 Modernization, adaptability and decarbonization of district heating systems.

Project objectives

Project objectives were not specified by the initiator

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Постійно проживаючі мешканці міста, які є споживачами послуг з опалення та гарячого водопостачання
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the demand forecast take into account the latest demographic and economic forecasts?

No
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
25
7239 human
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Pollution prevention and control
[Response was provided in the Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

No
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Conducting an EIA is not required.
[Response was provided in the Investment Feasibility Study]

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

None of the options are applicable

Does the project provide for improving women's access to services?

None of the options are applicable

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

None of the options are applicable

Have the gender risks and social impacts of the project been assessed?

None of the options are applicable

Are there management and institutional mechanisms in place to ensure gender equality?

None of the options are applicable

Documents

Name
Date
Kharkiv Collaboration Project_Boiler Houses_Feasibility Study_UKR_v1_compressed.pdf
08.10.2025
17:30:49 UTC

Alternative technical solutions

Technical Solution 1

Reconstruction of the boiler house in the Saltivskyi district of Kharkiv

Technical Solution 2

Installation of block-modular boiler houses in the Saltivskyi district of Kharkiv

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)116'550'000 UAH190'689'684 UAH
For preparation150'000 UAH180'000 UAH
For implementation116'400'000 UAH190'509'684 UAH
Project operation and closure cost2 UAH1'000'001 UAH
For operation1 UAH1 UAH
For closing1 UAH1'000'000 UAH
Average annual costs1 UAH0 UAH
Project duration, incl.11 months24 months
Deadline for developing a FFS3 months12 months
Implementation period8 months12 months
Service life240 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
0
To components
0

Commercial Justification

Supplier and contractor market assessment

Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, both national and international

[Response was provided in the Preliminary Investment Feasibility Study]

Has an analysis of available procurement options been conducted for the technical solution?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Закупівля відповідно до Закону України про публічні закупівлі

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
ProZorro

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Development of PCD

[Response was provided in the Investment Feasibility Study]

Potential market participants
Будівельно-монтажні організації

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
На ринку наявні компанії для реалізації данного проєкту

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget116'550'002 UAH191'689'685 UAH
Project cost (preparation and implementation)116'550'000 UAH190'689'684 UAH
For preparation150'000 UAH180'000 UAH
For implementation116'400'000 UAH190'509'684 UAH
Project operation and closure cost2 UAH1'000'001 UAH
For operation1 UAH1 UAH
For closing1 UAH1'000'000 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service UnitСпоживачі послуги
Service Unit Cost16'080 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?Yes
Has the financial condition of the potential beneficiary been assessed in accordance with the order of the Ministry of Finance of Ukraine dated 14.07.2016 No. 616?No
NPV Value4'572'600 UAH

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds0 UAH0 UAH
Expected Funds0 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
The project does not fall under the PPP format by its nature/character

[Response was provided in the Preliminary Investment Feasibility Study]

Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - social and gender analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - public consultations

[Response was provided in the Preliminary Investment Feasibility Study]

Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - SDG compliance analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic justification - environmental expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Management rationale - risk management

[Response was provided in the Preliminary Investment Feasibility Study]

Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
No

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Economic analysts

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
No

[Response was provided in the Investment Feasibility Study]

Risk assessment

Environmental riskDefinedUndefined

Organizational events

ResponseDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

None of the options are applicable

Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
08/10/2025SP-L-081025-64F1B743Community SPPreliminary Investment Feasibility StudyInclude--
12/10/2025SP-L-121025-DF5F8A11Community SPInvestment Feasibility StudyInclude--
23/03/2026SP-N-230326-010B7E13State SPInvestment Feasibility StudyAwaiting reviewReplacement of boilers with modern, highly efficient water heating models; replacement of auxiliary equipment and materials, including pumping equipment, chemical water treatment systems, and electrical equipment-
12/12/2025SPP-L-121225-B7547B8ACommunity SPPInvestment Feasibility StudyInclude-94