The purpose of the public investment project is to create a modern, energy-efficient and environmentally friendly source of thermal energy by building a new boiler house on the site of the decommissioned Mekhanobchormet boiler house, which will ensure reliable, economically justified and uninterrupted heat supply to consumers of the Kryvyi Rih heating district. Ensuring sustainable, efficient and environmentally friendly heat supply for an enterprise or region, taking into account the requirements for energy security, economic efficiency and environmental responsibility. The implementation of this project will allow increasing energy independence, reducing energy costs and promoting sustainable development. Reducing fuel consumption (natural gas, electricity and water through the installation of new energy-efficient equipment; reducing emissions of harmful gases into the atmosphere; providing the consumer with uninterrupted and high-quality thermal energy services). ensuring compliance with modern environmental standards; forming a reserve of capacities for the future development of urban infrastructure. Increasing the level of energy security and independence of the territorial community; reduction of technological and financial losses in the heat supply system;

1.1. Lack of a modern and reliable source of heat supply 1. Inefficient operation of boiler equipment The operation of the boiler room is characterized by extremely low energy efficiency, which is due to: physical and moral wear and tear of boiler equipment; unsatisfactory technical condition of boilers; limited opportunities for optimal regulation of operating modes. As a result, the actual load of boilers, according to the regime maps, does not exceed 40% of the nominal capacity, which leads to: fuel overconsumption; increase in the specific cost of thermal energy; decrease in the reliability of heat supply. 2. Lack of a chemical water treatment system The boiler room does not have a full-fledged chemical water treatment system, which negatively affects: the technical condition of boilers; durability of heating networks; stability of thermal hydraulic modes. The use of untreated or insufficiently prepared water leads to: scale formation and corrosion; reduction in boiler heat output; accelerated wear of equipment and pipelines; increased system failure rate. 3. Critical condition of district heating networks The district heating network, served by the KMK boiler house, is outdated and is in critical technical condition. Main problems: a significant part of the thermal insulation is made of mineral wool or slag wool, wrapped with: boehmite, foil insulation, roofing felt, in some places - shingles and waterproof canvas; thermal insulation materials have lost their properties or are completely destroyed; more than 70% of heating networks are worn out and require replacement or major reconstruction. This condition of the networks leads to significant heat losses and frequent accidents. 4. High level of accidents and interruptions in heat supply wear and tear of pipelines causes a constant trend towards an increase in the number of surges in heat networks. For the period from December 2023 to January 20, 2025: 219 heat supply outages were recorded; the total duration of outages was 20,626 hours. This leads to: systematic interruptions in heat supply to consumers; social tension; increased costs for emergency repairs; reduced trust in the district heating system. 5. Significant losses of thermal energy in networks The unsatisfactory condition of heating networks causes significant losses of thermal energy during transportation: 2022 - 37,274 Gcal 2023 - 32,820 Gcal 2024 - 37,356 Gcal Such losses indicate: irrational use of fuel and energy resources; a significant increase in heat production costs; the need for urgent systemic changes in heat supply. General assessment The combination of the above factors indicates that the further operation of the KMK boiler house and the associated heating networks without comprehensive modernization or replacement of the heat source is technically, economically and socially inexpedient. It is these circumstances that form a justified need for the implementation of a public investment project to build a new modern boiler house as an alternative and reliable source of heat supply.