Energy saving measures. Reconstruction of district heating networks from the boiler house "KMK" to residential houses and buildings located in blocks 285-287 in the Metallurgical District of Kryvyi Rih, Dnipropetrovsk region (Left "wing")


Sector
Municipal infrastructure and services
Stream
Restoration, modernization and development of centralized and decentralized heating systems
Maturity level
78
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 "KMK" in the area from the left "wing" of pumping station No. 60 (TRP-60) to consumers, which are residential buildings and buildings in blocks 285-287, 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 made of polyethylene resistant to atmospheric corrosion (according to DSTU B V.2.5-31:2007); replacement of existing pipelines of quarter heat networks using flexible pre-heat-insulated pipes, with a working temperature of the coolant up to 95 ° C and a maximum working pressure of 1.0 MPa; replacement of existing pipelines in heat chambers and basements using steel pipes, hot-deformed seamless (according to DSTU 8938:2019); replacement of existing and installation of new shut-off valves in heat chambers; thermal insulation of pipelines and valves in heat chambers; repair and reconstruction of heat chambers and construction drainage wells if necessary; dismantling and replacement of impassable channels (precast concrete trays); restoration of road surfaces and sidewalks in places where external heating network pipelines are laid; carrying out landscaping and improvement works in the area where the work is being carried out.

The purpose of the project

Main Goal:

Meeting demand

Secondary Goal:

Increasing compliance with modern standards, Improving the equality of wealth distribution, Introducing innovations and energy-efficient solutions, Поява нових виробничих потужностей, Improving the quality of services

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

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 "KMK" in the area from the left "wing" of the pumping station No. 60 (TRP-60) to consumers, which are residential buildings and buildings in blocks 285-287, which are characterized by high rates of heat energy losses and unsatisfactory technical condition. Additional land acquisition is not required.

Problems and solutions resulting from project implementation

. High level of physical wear and tear of heating networks Problem: Existing district heating networks have been in operation for a long time, have significant physical and moral wear and tear, which leads to frequent accidents, coolant leaks and increased heat energy losses. Solution result: Replacing worn pipelines with new pre-insulated networks has reduced the accident rate, increased reliability and extended the period of trouble-free operation of heating networks. 2. Significant losses of heat energy during transportation Problem: Insufficient thermal insulation of existing pipelines causes significant heat losses during transportation of the coolant from the boiler room to consumers. Solution result: The use of modern pre-insulated pipes has significantly reduced heat losses and brought them to regulatory values, which ensures savings in heat energy and fuel. 3. Frequent coolant leaks and excess feed water consumption Problem: Leakage of connections and corrosion damage to pipes lead to constant coolant leaks, increased feed volumes and additional costs for water preparation. Solution result: Reconstruction of networks ensured the tightness of the system, which allowed to reduce coolant losses, reduce water and chemical reagent consumption. 4. Violation of the hydraulic regime of the heating network Problem: Mismatch of pipeline diameters with actual thermal loads led to uneven distribution of coolant and excess electricity consumption by pumping equipment. Solution result: Optimization of routes and pipe diameters ensured a stable hydraulic regime, reduced hydraulic losses and contributed to a decrease in electricity consumption. 5. Difficulty in locating accidents and carrying out repairs Problem: The lack of modern shut-off valves made it difficult to quickly disconnect individual sections of the network, which led to the disconnection of a large number of consumers. Solution result: Installation of modern shut-off and control valves provided the possibility of local disconnection of emergency sections, reduced repair time and minimized inconvenience for consumers. 6. Low reliability of heat supply during the heating season Problem: Frequent accidents and unstable coolant parameters negatively affected the quality of heat supply to residential buildings and social facilities. Solution result: After the project was implemented, stable heat supply parameters were ensured, the comfort of the population and the reliability of the entire system were increased. 7. High operating costs Problem: Constant emergency and restoration work and energy losses caused significant operating costs for the enterprise. Solution result: Reducing heat energy losses and accidents led to a reduction in operating costs and an increase in the economic efficiency of the heating networks. Overall result The implementation of the project to reconstruct the district heating networks from the KMK boiler house allowed us to comprehensively solve technical and energy problems, ensure energy savings, increase the reliability of heat supply and create the prerequisites for the sustainable operation of the heat supply system in blocks 285–287 of the Metallurgical District of Kryvyi Rih.

Socio-economic context

Indicator

Value

Number of people who will use the service

1450 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
Length of the section
1 m
956 m

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Реконструкція існуючих квартальних теплових мереж для теплопостачання
[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
1450 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?

The project will improve women's access to safe water, food, and medical services
[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
ex01_0815-1904-8904-0477_20251226084051 (1).pdf
23.01.2026
13:35:44 UTC
KTM-25.07-KD.K_Exit_compressed_compressed.pdf
26.01.2026
09:52:57 UTC
Justification .pdf
26.01.2026
09:53:35 UTC
zp01_0079-6552-7756-0865_20251211015602.pdf
26.01.2026
09:54:15 UTC
Justification of selected sources and financing mechanisms 285-287 left.docx
09.02.2026
11:21:56 UTC
Calculations for depositing 285 left%%.xlsx
09.02.2026
11:22:09 UTC

Alternative technical solutions

Technical Solution 1

Energy saving measures. Reconstruction of district heating networks from the KMK boiler house to residential buildings and buildings located in blocks 285-287 in the Metallurgical District of Kryvyi Rih, Dnipropetrovsk region (Left "wing")

Technical Solution 2

Energy saving measures. Reconstruction of district heating networks from the KMK boiler house to residential buildings and buildings located in blocks 285-287 using steel pipelines in the Metallurgical District of Kryvyi Rih, Dnipropetrovsk region (Left "wing")

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)53'371'366 UAH60'100'000 UAH
For preparation1'667'018 UAH1'600'000 UAH
For implementation51'704'348 UAH58'500'000 UAH
Project operation and closure cost58'276'106 UAH8'000'000 UAH
For operation58'276'106 UAH8'000'000 UAH
Average annual costs1'942'537 UAH0 UAH
Project duration, incl.24 months13 months
Deadline for developing a FFS6 months1 month
Implementation period18 months12 months
Service life360 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
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?
No

[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?
Реалізація проєкту передбачається на підставі вигоровлення проєктно-кошторисної документації

[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 в процесі закупівель буде використано електроний майданчик 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
Попередня реалізація подібних проєктів підтверджує залучення достатньої кількості учасників. Прозорі закупівлі – використання електронної системи Prozorro забезпечує відкритість і дозволяє залучати конкурентноспроможні компанії

[Response was provided in the Investment Feasibility Study]

Potential market participants
Аналіз досвіду проведення тендерних закупівель на аналогічні роботи свідчить про достатній рівень конкуренції між потенційними підрядниками, постачальниками.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Ринок готовий до реалізації подібного проєкту: наявність кваліфікованих виконавців, доступність технологій / ресурсів.

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget111'647'472 UAH68'100'000 UAH
Project cost (preparation and implementation)53'371'366 UAH60'100'000 UAH
For preparation1'667'018 UAH1'600'000 UAH
For implementation51'704'348 UAH58'500'000 UAH
Project operation and closure cost58'276'106 UAH8'000'000 UAH
For operation58'276'106 UAH8'000'000 UAH
For closing0 UAH0 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 UnitЗагальна вартість інвестицій на одного споживача
Service Unit Cost39'517 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 Funds34'073'506 UAH0 UAH
Expected Funds34'073'506 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]

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

Financial 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
27/01/2026SP-L-270126-74DA0523Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
07/02/2026SP-L-070226-1EA52EA5Community SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
09/02/2026SP-L-090226-B4A20B06Community SPInvestment Feasibility StudyInclude--
17/02/2026SPP-L-170226-C6BF2988Community SPPInvestment Feasibility StudyInclude-78