Energy saving measures. Reconstruction of the district heating networks of the boiler house "PivnGZK No. 2" from TK-181a to TK-193 and to residential buildings and buildings connected from TK-193, Dnipropetrovsk region, Kryvyi Rih city, Terniv district


Sector
Municipal infrastructure and services
Stream
Restoration, modernization and development of centralized and decentralized heating systems
Maturity level
75
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

The working project is intended to increase the energy efficiency of the centralized heating system of consumers by reconstructing the heating networks from the boiler house "PivnGZK No. 2" on the section from TK-181a-TK193 and to consumers, which are residential buildings and buildings connected from TK-193, which are characterized by high rates of heat energy losses and unsatisfactory technical condition. Additional land acquisition is not required. When performing major repairs of old external heat networks, it is envisaged: replacement of existing pipelines of external heat networks using pipelines pre-insulated with polyurethane foam elements with a conductive steel pipe and an outer shell of polyethylene resistant to atmospheric corrosion (according to DSTU B V.2.5-31:2007); replacement of existing pipelines of district heat networks using flexible pre-heat-insulated reinforced pipes, consisting of three elements that are tightly connected to each other: a conductive pipe, polyurethane foam and an outer shell of PE with an operating temperature of the coolant up to 95 ° C and a maximum operating pressure of 1.0 MPa; replacement of existing pipelines in heat chambers using steel pipes, hot-deformed seamless (according to DSTU 8938:2019); replacement existing and installation of new shut-off valves in thermal chambers; thermal insulation of pipelines and valves in thermal chambers; repair and reconstruction of thermal chambers with the arrangement of pits; drainage of thermal networks should be provided by pumping from the chamber directly into a tanker truck, without the arrangement of drainage wells; dismantling and replacement of impassable channel elements (precast concrete trays, if necessary); restoration of road surfaces and sidewalks in places where external thermal network pipelines are laid; performance of landscaping and improvement works in the area where the work is being carried out.

The purpose of the project

Main Goal:

Improving the quality of services

Secondary Goal:

Capacity building, Contribution to climate or environmental goals, Increasing compliance with modern standards, Increasing compliance with modern standards, Improving the equality of wealth distribution, Increasing the even distribution of resources, Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Meeting demand

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

The goal of the project is to comprehensively increase the energy efficiency, reliability and operational safety of the district heating system in the city of Kryvyi Rih through technical re-equipment and reconstruction of heating networks from the PivnGZK No. 2 boiler house in the area from TK-181a to TK-193 and networks connected from TK-193. In detail, the goal includes: reducing heat energy losses during transportation by at least 20–40%; increasing the reliability of network operation and reducing the accident rate; ensuring stable coolant parameters for consumers; reducing operating costs for maintenance and repair; extending the service life of engineering infrastructure; improving the quality of housing and communal services for the population.

Problems and solutions resulting from project implementation

The existing section of the heat networks from TK-181a to TK-197a has the following main problems: High level of physical wear of pipelines Steel pipelines have been in operation for a long time, which has led to their corrosion damage, reduced strength and reliability. Absence or unsatisfactory condition of thermal insulation A significant part of the networks is uninsulated or has damaged insulation, which causes significant heat losses. Low energy efficiency of the heat supply system Due to heat losses and outdated design solutions, energy costs for heat transportation increase. Frequent emergencies and coolant leaks Wear of networks and equipment leads to an increased risk of surges, which causes interruptions in heat supply. Imperfection of existing compensator solutions U-shaped compensators have limited efficiency and require significant operating costs. Disruption of the improvement of territories Due to emergency repairs and wear and tear of networks, the condition of sidewalks, driveways and green areas is deteriorating. Relevance of solving problems These problems are particularly relevant at the present time due to: the constant increase in the cost of energy resources and the need for their rational use; increased requirements for energy efficiency and reliability of engineering infrastructure; the social importance of uninterrupted heat supply to residential and public buildings; the need to reduce operating costs and network breakdowns; the worn-out condition of existing communications, which has reached a critical level. Possible consequences if problems are not resolved In the event of refusal to reconstruct, the following negative consequences are possible: an increase in the number of accidents and, as a result, frequent interruptions in heat supply; an increase in heat energy losses and overspending of fuel and energy resources; an increase in costs for emergency repairs and operation; deterioration of the quality of services provided to the population; further destruction of elements of landscaping; risks of complete failure of individual sections of the heating network. Expected positive results of the project implementation The implementation of the reconstruction project will ensure: reduction of heat losses through the use of modern pre-insulated pipelines; increased reliability of heat supply and reduced accident rates; reduced consumption of energy resources and costs for their payment; improved quality of services for residents and users of buildings; reduced operating costs for network maintenance; restoration of landscaping of territories (sidewalks, driveways, green areas); extended service life of engineering infrastructure.

Socio-economic context

Indicator

Value

Other economic

920 m

Other economic

1840 m

Number of employees of the institution/institution/organization

10 human

Number of people who will use the service

383 human

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

District Heating

Stream

Restoration, modernization and development of centralized and decentralized heating systems

Strategic document

Стратегія розвитку територіальної громади

Task

2.5.2 Reducing energy losses/consumption

Project objectives

Indicator
Base value
Target value
The length of the section
897 m
910 m

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Підприємство КПТМ "Криворіжтепломережа" є монополістами у наданні послуг. Беруться історичні дані споживання.
[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
1
383 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?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
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]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[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?

Sustainable use and protection of water and marine resources
[Response was provided in the Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Investment Feasibility Study]
Climate change adaptation
[Response was provided in the Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Investment Feasibility Study]
Transition to a circular economy
[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:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

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

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

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
PivnGZK_2 TK-181a_ost.xlsx
19.04.2026
09:44:44 UTC
KTM-26.02-K_Login.xlsx
19.04.2026
09:45:03 UTC
Justification_of_selected_sources_and_mechanisms_of_financing_181a_ost.docx
20.04.2026
12:25:13 UTC

Alternative technical solutions

Technical Solution 1

Energy saving measures. Reconstruction of the district heating networks of the boiler house "PivnGZK No. 2" from TK-181a to TK-193 and to residential buildings and buildings connected from TK-193, Dnipropetrovsk region, Kryvyi Rih city, Terniv district

Technical Solution 2

Energy saving measures. Reconstruction of the district heating networks of the boiler house "PivnGZK No. 2" from TK-181a to TK-193 and to residential buildings and buildings connected from TK-193 using steel pipelines without prior insulation, Dnipropetrovsk region, Kryvyi Rih city, Terniv district

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)61'696'716 UAH46'400'000 UAH
For preparation1'305'601 UAH1'400'000 UAH
For implementation60'391'115 UAH45'000'000 UAH
Project operation and closure cost67'784'939 UAH90'000'000 UAH
For operation67'784'939 UAH80'000'000 UAH
For closing0 UAH10'000'000 UAH
Average annual costs2'262'498 UAH2'200'000 UAH
Project duration, incl.9 months0 months
Deadline for developing a FFS3 months0 months
Implementation period6 months0 months
Service life360 months0 months
Target indicatorsDefined Not defined
Technical Solution Status
Active

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

Pending

[The project initiator has not taken any decision about this alternative technical approach.]

Components of a technical solution
To components
1
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?
Для реалізації проєкту обрано стратегію комплексної закупівлі робіт із постачанням обладнання, монтажем, пусконалагодженням та введенням об’єкта в експлуатацію в межах одного предмета закупівлі. Доцільність такого підходу обґрунтована необхідністю забезпечення технічної сумісності обладнання, безперервності електропостачання лікарні як об’єкта критичної інфраструктури, чіткої координації робіт та єдиної відповідальності виконавця за кінцевий результат. З урахуванням наявності на ринку спеціалізованих компаній, здатних реалізовувати комплексні проєкти у сфері електроенергетичної інфраструктури, така стратегія є оптимальною як з технічної, так і з організаційної точки зору.

[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?
Для забезпечення прозорості, конкуренції та ефективності у процесі закупівель планується застосування відкритих конкурентних процедур із використанням електронної системи ProZorro, що забезпечує публічність усіх етапів закупівлі та рівний доступ потенційних учасників. Тендерна документація формуватиметься з чіткими та недискримінаційними вимогами, а оцінка пропозицій здійснюватиметься за заздалегідь визначеними критеріями. Контроль якості закупівель та виконання договорів забезпечуватиметься шляхом технічного нагляду, поетапного приймання робіт і публічного звітування, а також внутрішнього контролю з боку замовника відповідно до чинного законодавства, що мінімізує ризики зловживань і забезпечує досягнення цілей проєкту.

[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]

Direct negotiation procedures

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
Попереднє залучення ринку здійснювалося у неконкурентному та недискримінаційному форматі з метою формування реалістичних технічних і організаційних підходів до реалізації проєкту. У межах підготовки проєкту проведено аналіз відкритих даних електронної системи ProZorro, зокрема результатів закупівель аналогічних проєктів у сфері енергетичної інфраструктури, що дозволило оцінити рівень конкуренції, типові технічні рішення та ринкові підходи до ціноутворення. Додатково використовувалися консультації з галузевими експертами та профільними спеціалістами, а також аналіз реалізованих в Україні та країнах ЄС схожих проєктів на об’єктах комунальної інфраструктури. Такий підхід дозволив узагальнити практики ринку, не створюючи переваг для окремих учасників, і сформувати вимоги до проєкту, що відповідають поточним можливостям ринку та забезпечують потенціал для ефективної конкуренції під час проведення закупівель.

[Response was provided in the Investment Feasibility Study]

Potential market participants
Під час підготовки проєкту були проведені неформальні консультації з представниками ринку у форматі загального збору інформації, без надання переваг окремим учасникам, з метою оцінки готовності ринку та типових підходів до реалізації проєктів реконструкції енергетичного обладнання відповідного масштабу. Результати аналізу та консультацій свідчать про високий рівень конкуренції на ринку: в Україні наявна значна кількість компаній, що спеціалізуються на проєктуванні, постачанні обладнання, будівництві та сервісному обслуговуванні енергетичного обладнання, а також міжнародних виробників і постачальників відповідного обладнання, які працюють через національних партнерів. Потенційними учасниками реалізації проєкту можуть бути національні та міжнародні постачальники обладнання, українські підрядні організації у сфері будівельно-монтажних робіт, а також інженерно-консалтингові компанії, що мають досвід супроводу енергетичних та інфраструктурних проєктів. Така структура ринку створює передумови для залучення широкого кола учасників і забезпечення реальної конкуренції під час проведення закупівель.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Ринок є високою мірою готовим до реалізації подібного проєкту. В Україні сформовано достатню кількість кваліфікованих підрядників і постачальників, які мають практичний досвід проєктування, будівництва та експлуатації електричних підстанцій відповідного масштабу, а також доступ до серійного обладнання і перевірених технологічних рішень. Трансформатори, вакуумні вимикачі, Силові роз’єднувачі та супутні компоненти є широко доступними на національному та міжнародному ринках, що мінімізує ризики постачання. Потенційні бар’єри мають переважно регуляторний та організаційний характер і пов’язані з дотриманням процедур підключення, землекористування та публічних закупівель, однак вони є стандартними для проєктів цього типу та не потребують застосування нестандартних рішень. Технічні та економічні ризики оцінюються як помірні та керовані, з урахуванням стабільності технологій та сформованої ринкової практики, що свідчить про загальну готовність ринку до ефективної реалізації проєкту.

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget129'481'655 UAH136'400'000 UAH
Project cost (preparation and implementation)61'696'716 UAH46'400'000 UAH
For preparation1'305'601 UAH1'400'000 UAH
For implementation60'391'115 UAH45'000'000 UAH
Project operation and closure cost67'784'939 UAH90'000'000 UAH
For operation67'784'939 UAH80'000'000 UAH
For closing0 UAH10'000'000 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 UnitСередня вартість проєкту на одного отримувача послуги або одиницю продукції
Service Unit Cost161'088 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

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 Funds1'305'601 UAH0 UAH
Expected Funds51'305'601 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.

[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]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - risk management

[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]

Financial analysis - financial analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - environmental expertise

[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
None of the options are applicable
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?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
None of the options are applicable
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

Technical riskDefinedUndefined
Financial riskDefinedUndefined
Other 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
10/04/2026SP-L-100426-825ABF8ECommunity SPInvestment Feasibility StudyNot approvedneeds a change of direction-
19/04/2026SP-L-190426-580EE726Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
20/04/2026SP-L-200426-D8E26CD5Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
20/04/2026SP-L-200426-23653D39Community SPInvestment Feasibility StudyInclude--
23/04/2026SPP-L-230426-CFCF6CE7Community SPPInvestment Feasibility StudyInclude-75