The purpose of the public investment project is to improve the quality of heat supply services for residents of the Kryvyi Rih urban territorial community by modernizing intra-district heating networks, bringing them into line with modern standards, implementing energy-efficient solutions, and improving the overall condition of critical engineering infrastructure. The current state of intra-district heating networks is characterized by a high level of physical wear, significant losses of thermal energy, and increased accident rate. Actual thermal energy losses in the heating networks of the Kryvyi Rih Teplomerezha Public Heat and Power Plant are 27.3%, which significantly exceeds the regulatory indicators and indicates the presence of a systemic gap between the current technical condition of the networks and the target level that meets modern requirements for the quality of services, energy efficiency, and environmental sustainability. This gap negatively affects the stability of heat supply, the level of comfort of residents, and leads to excessive consumption of energy resources. The project goal is expected to be achieved through a phased modernization of intra-district heating networks using modern technical solutions that reduce heat losses during coolant transportation, increase system reliability, and extend its service life. Reducing heat losses will not only have an economic effect, but will also help reduce unproductive fuel consumption for heat production, which, in turn, will provide a moderate contribution to achieving the community's climate and environmental goals without changing the existing heat supply model.

The key problem that the project aims to solve is the unsatisfactory technical condition of the district heating networks of the Kryvyi Rih city territorial community. A significant part of the networks is operated beyond the regulatory period, which leads to a high level of physical wear, increased accident rate and significant losses of thermal energy during its transportation. The actual losses of thermal energy in the networks of the Kryvyi Rih Teplomerezha District Heating Company are 27.3%, which significantly exceeds the regulatory indicators and negatively affects the quality and reliability of heat supply services. This problem is especially relevant at this stage in view of the growing requirements for energy efficiency, limited fuel and energy resources, as well as the need to ensure stable operation of critical infrastructure in conditions of increased risks and loads. Further operation of worn-out intra-district networks without systematic modernization deepens the infrastructure gap between the current state of heat supply and modern standards of service quality and safety for residents. If these problems are not resolved, there is a risk of further increase in the accident rate, increased heat energy losses and costs for emergency and restoration work, which will have negative socio-economic consequences. This may lead to a deterioration in the quality of heat supply during the heating season, a decrease in the level of comfort of the population, an increase in the financial burden on the utility company and inefficient use of the community's budget and energy resources. The implementation of the project will eliminate these problems through systematic modernization of intra-district heat networks, which will ensure a reduction in heat energy losses, increased reliability and uninterrupted heat supply, as well as improved quality of housing and communal services for community residents. Expected positive changes include stable operation of the thermal infrastructure, reduced operating costs, more rational use of energy resources, and creation of prerequisites for achieving the long-term goals of sustainable development and energy security of the Kryvyi Rih urban territorial community.