Energy saving measures. Reconstruction of the boiler house at Mykola Khodych, 15, with the installation of a block-modular boiler house, Kryvyi Rih, Dnipropetrovsk region. Adjustments


Sector
Municipal infrastructure and services
Stream
Restoration, modernization and development of centralized and decentralized heating systems
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 block-modular boiler house (BMK) is designed to supply thermal energy for heating needs to existing consumers of the municipal enterprise of heat networks "Kryvorizhteplomerezha". The boiler plant equipment is mounted inside the container. The container structure is welded, made of steel sheets and profiles, with a 100 mm thick insulation made of non-combustible material. The degree of fire resistance of the container is IIIa according to DBN V.1.1-7. The communications exits are through the walls of the container. The boiler plant is made on the basis of two steel fire-tube water-heating gas boilers. Natural gas is used to produce thermal energy, which is supplied to the boiler house via a designed pipeline from the existing gas pipeline with a SHGRP installation to reduce the pressure to the design value. Structurally, the BMK provides for the possibility of switching to diesel fuel. The nominal thermal power of the boiler room equipment is 516 kW. The nominal thermal efficiency is 466 kW. The heat supply system is a closed two-pipe system. Thermal energy is released from the boiler room with heated water according to the temperature schedule T1-T2 = 90-70˚С. The maximum operating pressure is 0.6 MPa. The BMK-500 block-modular boiler room is a finished product (manufactured in accordance with TU U 28.2-20016760-026-2023), which is supplied by the manufacturer in a fully equipped form with all technological, construction and fire protection systems. This project does not develop the internal systems and equipment of the BMK. It is planned to connect the BMK to gas, heat, water, electricity and sewage networks.

The purpose of the project

Main goal:

Improving the equality of wealth distribution

Secondary goal:

Increasing compliance with modern standards, Increasing compliance with modern standards, Creation of new facilities and services, Increasing the even distribution of resources, Introducing innovations and energy-efficient solutions, Improving the quality of services, Meeting demand

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

The heat supply system for consumers at the address: Kryvyi Rih, Mykoly Khodycha St., 15, is currently based on the use of outdated boiler infrastructure, the physical and moral wear and tear of which leads to increased consumption of fuel and energy resources, reduced reliability of heat supply and increased operating costs. The main problems of the current state: low efficiency of boiler equipment; increased heat energy losses in the production process; limited possibilities for automated regulation of operating modes; non-compliance with modern requirements for energy efficiency and reliability; risks of interruption of heat supply during the heating season. These factors form a gap between the actual level of heat supply efficiency and target indicators defined by the current state and local policy in the field of energy saving and development of municipal infrastructure. Target level (desired state) The target level of project implementation is the creation of a modern, energy-efficient and reliable source of heat supply by reconstructing the boiler house with the installation of a factory-made modular boiler house, which will ensure: stable heat supply to existing consumers; reduction of specific natural gas consumption; reduction of heat energy losses; compliance with modern regulatory requirements for energy efficiency, safety and environmental friendliness; increased manageability and flexibility of the heat supply system. Purpose of the public investment project The purpose of the public investment project is to increase energy efficiency and reliability of heat supply to consumers of the Kryvorizhteplomerezha heating and cooling system by reconstructing the boiler house at Mykoly Khodych Street, 15 with the installation of a modern modular boiler house, which will reduce the consumption of fuel and energy resources, optimize budget expenses and ensure sustainable development of urban infrastructure. Methods for achieving the project goal: Achieving the set goal is ensured by implementing the following key measures: Technical modernization of the heat supply source Installation of a factory-made BMK-500 block-modular boiler house with modern gas-fired water-heating boilers with increased efficiency. Implementation of automated control systems Ensuring automatic regulation of boiler equipment operating modes in accordance with the actual heat load and temperature schedule. Optimization of the heat supply system Application of a closed two-pipe heat supply system with minimizing coolant losses and reducing corrosion processes. Reduction of heat losses Use of a thermally insulated BMK container and modern engineering solutions for the passage of communications through enclosing structures. Increasing the reliability and flexibility of heat supply Provision of the possibility of operating the boiler house on a backup type of fuel (diesel fuel) in case of gas supply restrictions. Justification for closing the gap The implementation of the project directly closes the existing gap between the current state and the target level by: replacing outdated equipment with modern energy-efficient equipment; reducing energy losses at all stages of heat production; transitioning to automated heat generation management; reducing operational and emergency risks. As a result, a qualitatively new level of heat supply is achieved that meets the requirements of sustainable development, increases the efficiency of budget use, and ensures long-term reliability of the system.

Problems and solutions resulting from project implementation

The block-modular boiler house (BMK) is designed to supply thermal energy for heating needs to existing consumers of the municipal enterprise of heat networks “Kryvorizhteplomerezha”. The boiler plant equipment is mounted inside the container. The container structure is welded, made of steel sheets and profiles, with a 100 mm thick insulation made of non-combustible material. The degree of fire resistance of the container is IIIa according to DBN V.1.1-7. The exits of communications are through the walls of the container. The boiler plant is made on the basis of two steel fire-tube water-heating gas boilers. Natural gas is used to produce thermal energy, which is supplied to the boiler house via a designed pipeline from the existing gas pipeline with a SHGRP installation to reduce the pressure to the calculated one. Structurally, the BMC provides for the possibility of switching to diesel fuel. The nominal thermal power of the boiler house equipment is 516 kW. Nominal heat output 466 kW. The heat supply system is a closed two-pipe system. From the boiler room, thermal energy is released with heated water according to the temperature schedule T1-T2 = 90-70˚С. The maximum operating pressure is 0.6 MPa. The BMK-500 block-modular boiler room is a finished product (manufactured in accordance with TU U 28.2-20016760-026-2023), which is supplied by the manufacturer in a fully equipped form with all technological, construction and fire protection systems. This project does not develop internal systems and equipment of the BMK. It is assumed that the BMK will be connected to gas, heat, water, electricity and sewage networks. The Customer selected the type of block-modular boiler plant. For stable operation of the boiler room, namely the electricity supply system, a DES is installed. The use of a diesel generator (emergency power system) does not provide for constant operation, but only in emergency situations. The emergency power system is intended for short-term operation while the main power supply of the boiler house is being established. The need to install diesel generators is associated with frequent stabilization and emergency power outages, which are caused by a shortage of electricity due to attacks by the Russian Federation on the country's energy infrastructure during the Russian armed aggression against Ukraine

Socio-economic context

Indicator

Value

Other economic

466 kW

Other economic

15 year

Other economic

0.48 MW

Number of people who will use the service

167 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
Number of consumers
167 human
167 human
Reconstruction of the boiler room at Mykola Khodych, 15, with the installation of a block-modular boiler room, Kryvyi Rih
496.8 kW
466 kW

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. Коригуються на: енергоефективні заходи; зміну кількості споживачів;
[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
167 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

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]

Documents

Name
Date
ex01_8984-8025-7826-9354_20250903035300.pdf
07.02.2026
12:24:10 UTC
zp01_3953-1649-3274-5045_20250821023218.pdf
07.02.2026
12:24:10 UTC
Volume 1 KTM-25.01-ZP_compressed.pdf
07.02.2026
12:24:10 UTC
Volume 10 KTM-25.01-K.K_compressed.pdf
07.02.2026
12:24:10 UTC
Justification_of_selected_sources_and_mechanisms_of_financing_by_Mykola_Khodych (2) (2).docx
10.02.2026
13:28:59 UTC
Calculations for entering HODYCH&&&.xlsx
10.02.2026
13:29:08 UTC

Alternative technical solutions

Technical Solution 1

Energy saving measures. Reconstruction of the boiler house at Mykola Khodych, 15, with the installation of a block-modular boiler house, Kryvyi Rih, Dnipropetrovsk region. Adjustments

Technical Solution 2

Reconstruction and modernization of the existing boiler house of Mykola Khodych, 15 Kryvyi Rih, Dnipropetrovsk region

Total costs39'689'140 UAH114'868'601 UAH
  • For preparation
  • 1'006'134 UAH1'200'000 UAH
  • For implementation
  • 17'855'581 UAH16'176'400 UAH
  • For operation
  • 20'827'425 UAH97'492'200 UAH
  • For closing
  • 0 UAH1 UAH
    Average annual costs1'388'495 UAH6'499'480 UAH
    Project duration, incl.42 months24 months
  • Deadline for developing a FFS
  • 6 months12 months
  • Implementation period
  • 36 months12 months
    Service life180 months180 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
    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, only national

    [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]

    Financial justification

    Total project budget

    Total preliminary budget39'689'140 UAH114'868'601 UAH
    Capital costs39'689'140 UAH114'868'601 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation1'006'134 UAH1'200'000 UAH
    For implementation17'855'581 UAH16'176'400 UAH
    For operation20'827'425 UAH97'492'200 UAH
    For closing0 UAH1 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 (167 люд)
    Service Unit Cost112'944 UAH

    Profitability of the project

    Is the project expected to generate income?NoNo

    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 Funds7'346'281 UAH0 UAH
    Expected Funds7'346'281 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?
    Yes, negotiations are already underway.

    [Response was provided in the Preliminary Investment Feasibility Study]

    Risk assessment

    Technical riskDefinedUndefined
    Financial riskDefinedUndefined
    Results of the feasibility analysis
    Project Preparation Program Engagement and Funding Needs

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

    None of the options are applicable

    Project Approval History

    DateDecision NumberPortfolioProject StatusDecisionReasons
    07/02/2026SP-L-070226-B34F61EBCommunity SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture-
    10/02/2026SP-L-100226-397B7794Community SPInvestment Feasibility StudyInclude-
    17/02/2026SPP-L-170226-E80C6D91Community SPPInvestment Feasibility StudyInclude-