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 Korabel microdistrict is a separate, washed-out island and is connected to the city of Kherson only by a bridge. In 2023, it was flooded after the destruction of the Kakhovka HPP, and apartment buildings and critical infrastructure facilities were flooded. Due to constant shelling, apartment buildings, critical infrastructure facilities, electricity, water, and heating networks were damaged, including the boiler house, which is local. 56 apartment buildings, 13 social facilities, namely: 1 medical institution, 3 kindergartens, 5 schools, 4 educational institutions received heating from the specified boiler house. 8,887 subscribers received central heating services, including 8,757 individuals and 130 legal entities. The implementation of a district heating system as a model project in a specific district of the city of Kherson will allow restoring and improving heating services in the Korabel district, reducing the consumption of fuel and energy resources and, accordingly, reducing CO2 emissions.
The purpose of the project
Main Goal:
Rebuilding the damaged/destroyed
Secondary Goal:
Introducing innovations and energy-efficient solutions, Improving the quality of services
Description of the purpose of the project and ways to achieve it
Modernization of the district heating system (DT), namely:
- Optimal configuration of the heating system;
- Electrification using cogeneration equipment and the possibility of using "heat pumps" that use sustainable heat sources, such as "river water";
- Self-sufficiency in electricity through the installation of cogeneration equipment.
Problems and solutions resulting from project implementation
Korabel microdistrict, in which approximately 38 thousand citizens lived before the war.
From the specified boiler house, the coolant was supplied to 56 apartment buildings, 13 social facilities, namely: 1 medical institution, 3 kindergartens, 5 schools, 4 educational institutions. 8,887 subscribers received centralized heating services, of which 8,757 were individuals and 130 were legal entities.
Socio-economic context
Indicator
Value
Number of people who will use the service
38 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
38 thous. people
Annual demand for services/infrastructure
2
38 thous. people
Annual demand for services/infrastructure
3
38 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
Modernization of the district heating system in the city of Kherson (Korabel microdistrict)
Technical Solution 2
Modernization of the district heating system in the city of Kherson (Korabel microdistrict)
Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)540'000'000 UAH602'000'000 UAH
For preparation30'000'000 UAH42'000'000 UAH
For implementation510'000'000 UAH560'000'000 UAH
Project operation and closure cost0 UAH6'000'000 UAH
For operation0 UAH6'000'000 UAH
Average annual costs5'000'000 UAH6'000'000 UAH
Project duration, incl.37 months40 months
Deadline for developing a FFS9 months10 months
Implementation period28 months30 months
Service life360 months360 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 budget540'000'000 UAH608'000'000 UAH
Project cost (preparation and implementation)540'000'000 UAH602'000'000 UAH
For preparation30'000'000 UAH42'000'000 UAH
For implementation510'000'000 UAH560'000'000 UAH
Project operation and closure cost0 UAH6'000'000 UAH
For operation0 UAH6'000'000 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]
Average project cost per service recipient
Service UnitНа одного жителя, який користується послугами
Service Unit Cost13'421 UAH
Profitability of the project
Is the project expected to generate income?YesNo
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 Value2 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?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project require preparation assistance from Project Preparation Programs (PPF)?
Development of a full feasibility study;
[Response was provided in the Preliminary Investment Feasibility Study]
Finalization of existing documentation for the preparation of a preliminary feasibility study
[Response was provided in the Preliminary Investment Feasibility Study]
Development of design and estimate documentation (DED);
[Response was provided in the Preliminary Investment Feasibility Study]
Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Preliminary Investment Feasibility Study]
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-070326-69384989Community SPPreliminary Investment Feasibility StudyInclude--
20/03/2026SPP-L-200326-E083743DCommunity SPPPreliminary Investment Feasibility StudyInclude-87