Reconstruction of heating networks of the boiler house at 95 I. Bohuna St. in the city of Kherson. Sections from the boiler house to TK-130; from TK-120 to TK-8-1; from TK-211 to TsTP-22; from TK-211 to TK-214; from TK-212/1 to TsTP-21
Sector
Municipal infrastructure and services
Stream
Modernization of the heating system (overhaul, reconstruction and arrangement of heating stations)
Maturity level
87
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Investment Feasibility Study
Implementation
Completion
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
- Summary
General information
Description of the project
The project involves the reconstruction of main and distribution heating networks from the boiler house at I. Bohuna, 95, which involves replacing pipes with pre-insulated ones, installing new shut-off valves, which will ensure a stable supply of coolant to consumers. The reconstruction of heating networks is necessary due to significant physical and moral wear and tear of pipelines, as well as damage due to military operations, which leads to losses of thermal energy, emergencies and interruptions in heat supply.
The purpose of the project
Main Goal:
Improving the condition of infrastructure
Secondary Goal:
Improving the quality of services
Description of the purpose of the project and ways to achieve it
During 2026 - 2028, it is planned to carry out the reconstruction of the main and distribution heating networks from the boiler house at I. Bohuna, 95, which involves replacing pipes with pre-insulated ones, installing new shut-off valves, which will ensure a stable supply of coolant to consumers. The modernization of the heating system is aimed at increasing the energy efficiency of municipal infrastructure, eliminating emergency situations in heating networks, reducing heat energy losses and providing consumers with quality services.
Problems and solutions resulting from project implementation
The reconstruction of heating networks is necessary due to significant physical and moral wear and tear of pipelines, as well as damage due to military operations, which leads to losses of thermal energy, emergencies and interruptions in heat supply. After the completion of construction works, approximately 2 km (in two-pipe measurement) will be replaced, and this will directly affect the daily life of more than 210 apartment buildings, which are home to about 40 thousand residents of two microdistricts of the city (Shumenskyi and Zhytloselyshche microdistricts).
Socio-economic context
Indicator
Value
Number of people who will use the service
40 thous. people
Strategic Case
Strategic feasibility of the project
Sector
Municipal infrastructure and services
Subsector
District Heating
Stream
Modernization of the heating system (overhaul, reconstruction and arrangement of heating stations)
Strategic document
State Strategy for Regional Development for 2021–2027
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?
Використано внутрішні звіти підприємства по підключеним абонентам та користувачам послуг.
[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?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
40 thous. people
Annual demand for services/infrastructure
2
40 thous. people
Annual demand for services/infrastructure
3
40 thous. people
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?
None of the options are applicable
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]
Alternative technical solutions
Technical Solution 1
Reconstruction of heating networks of the boiler house at 95 I. Bohuna St. in the city of Kherson. Sections from the boiler house to TK-130; from TK-120 to TK-8-1; from TK-211 to TsTP-22; from TK-211 to TK-214; from TK-212/1 to TsTP-21
Technical Solution 2
Reconstruction of the boiler room at 95 I. Bohuna Street with the installation of modular boiler rooms
Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)229'235'656 UAH862'000'000 UAH
For preparation0 UAH12'000'000 UAH
For implementation229'235'656 UAH850'000'000 UAH
Project operation and closure cost0 UAH24'200'000 UAH
For operation0 UAH6'200'000 UAH
For closing0 UAH18'000'000 UAH
Average annual costs700'000 UAH6'200'000 UAH
Project duration, incl.33 months42 months
Deadline for developing a FFS1 month12 months
Implementation period32 months30 months
Service life360 months300 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.]
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]
Financial justification
Total project budget
Total preliminary budget229'235'656 UAH886'200'000 UAH
Project cost (preparation and implementation)229'235'656 UAH862'000'000 UAH
For preparation0 UAH12'000'000 UAH
For implementation229'235'656 UAH850'000'000 UAH
Project operation and closure cost0 UAH24'200'000 UAH
For operation0 UAH6'200'000 UAH
For closing0 UAH18'000'000 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]
Average project cost per service recipient
Service UnitНа одного жителя, який користується послугами
Service Unit Cost5'731 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?
Yes
NPV Value1 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
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)
None of the options are applicable
Does the team have experience implementing similar projects?
Partially, we have limited experience
[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
Economic riskDefinedUndefined
Operational riskDefinedUndefined
Other riskDefinedUndefined
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
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
07/03/2026SP-L-070326-AA975F9DCommunity SPPreliminary Investment Feasibility StudyInclude--
20/03/2026SPP-L-200326-DCA8DEC6Community SPPPreliminary Investment Feasibility StudyInclude-87