Reconstruction of heating networks with replacement of emergency sections with pipes pre-insulated with polyurethane foam insulation of the Zvyagelteplo heating and cooling enterprise in the city of Zvyagel, Zhytomyr region (in the central part of the city - 614 sq.m.)
Sector
Municipal infrastructure and services
Stream
Restoration, modernization and development of the district heating system
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SP
Implementation
Completion
- Preparation
- General information
- Strategic Case
- Economic Case
- Financial Case
- Management Case
General information
Description of the project
A number of sections of the heating network are operated with pipelines that were laid over 30 years ago. Their physical wear has reached a critical level, which poses a serious threat to the uninterrupted and efficient operation of the heating system. Further operation of these sections without modernization can lead to numerous emergency situations, with interruptions in the supply of heat to consumers, especially in the winter.
The high level of pipe wear leads to a number of serious problems:
- significant losses of thermal energy – in 2024, 4.5% of the total amount of heat produced by the boiler house was lost;
- heat carrier leaks, which cause soil and water pollution;
- unstable heat supply to consumers;
- increasing costs for repairs and maintenance of emergency areas;
- increased emissions of harmful substances due to inefficient system operation.
Modernization of networks is necessary to ensure reliable, safe and cost-effective heat supply.
The purpose of the project
Main goal:
Improving the quality of services
Secondary goal:
Increasing compliance with modern standards, Improving the condition of infrastructure
Description of the purpose of the project and ways to achieve it
- ensuring uninterrupted service provision;
- reducing heat energy losses;
- reducing coolant leaks;
- increasing consumer satisfaction with the quality of services;
Problems and solutions resulting from project implementation
The high level of pipe wear leads to a number of serious problems:
- significant losses of thermal energy - in 2024, 5.5% of the total amount of heat produced by the boiler house was lost;
- coolant leaks, which cause soil and water pollution;
- unstable heat supply to consumers;
- increased costs for repairs and maintenance of emergency areas;
- increased emissions of harmful substances due to inefficient system operation.
The results of their solution as a result of the project implementation:
- reduction of heat losses by 3% (284 Gcal) of losses in this area;
- reduction of fuel consumption: since thermal energy losses directly affect fuel consumption, the implementation of the measure will allow us to save 37,800 m3 of natural gas;
- reduction of operating costs: due to the absence of emergency situations, prevention of defrosting of heating systems of residential buildings, reduction of social tension.
Increased reliability and quality of services:
- ensuring uninterrupted and reliable heat supply to consumers;
- optimal pressure and water flow in the system.
Environmental benefits: reduced emissions of greenhouse gases and other pollutants through more efficient use of fuel
Resource conservation: more efficient use of energy resources.
Increased safety: improved safety for both operators and the public by reducing the risks of leaks and ruptures.
Compliance with modern standards: compliance with all current regulatory requirements and best practices.
Socio-economic context
Indicator
Value
Other economic
1.2 %
Number of people who will use the service
852 human
Strategic Case
Strategic feasibility of the project
Sector
Municipal infrastructure and services
Subsector
District Heating
Stream
Restoration, modernization and development of the district heating system
Strategic document
Task
11 Modernization, adaptability and decarbonization of district heating systems.
Project objectives
Indicator
Base value
Target value
Reducing heat energy losses
4.1 %
2.9 %
Demand for the service and its dynamics
Indicator
Year
Demand
Annual demand for services/infrastructure
2
2 GWh
Economic justification
Alternative technical solutions
Technical Solution 1
Reconstruction of heating networks with replacement of emergency sections with pipes pre-insulated with polyurethane foam insulation of the Zvyagelteplo heating and cooling enterprise in the city of Zvyagel, Zhytomyr region (in the central part of the city - 614 sq.m.)
Technical Solution 2
Reconstruction of heating networks with replacement of emergency sections with pipes pre-insulated with polyurethane foam insulation of the Zvyagelteplo heating and cooling enterprise in the city of Zvyagel, Zhytomyr region (in the central part of the city - 614 sq.m.) (alternative option)
Total costs4'440'343 UAH7'992'617 UAH
Average annual costs177'614 UAH399'631 UAH
Project duration, incl.13 months13 months
Service life420 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active
Rejected
Components of a technical solution
Financial justification
Total project budget
Total preliminary budget4'440'343 UAH7'992'617 UAH
Capital costs4'440'343 UAH7'992'617 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation45'731 UAH47'000 UAH
For implementation4'290'810 UAH7'841'817 UAH
For operation0 UAH0 UAH
For closing103'802 UAH103'800 UAH
Average project cost per service recipient
Service UnitКількість отримувачів
Service Unit Cost5'211 UAH
Profitability of the project
Is the project expected to generate income?
ResponseNoNo
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Funding Sources
Approved Funds1'010'760 UAH0 UAH
Expected Funds1'010'760 UAH0 UAH
Results of the feasibility analysis
Economic Analysis
Social benefits and costs
Social benefits: improved quality and reliability of services, stable heat supply: reduced number of accidents (due to wear and tear of old networks) and, as a result, minimized interruptions in the supply of heat and hot water during the heating season. Comfort: Ensuring stable temperature parameters of the coolant in dwellings, which increases the overall comfort of living for the population. Social costs - temporary inconvenience, disruption of traffic and infrastructure: carrying out earthworks (excavations) to replace pipes leads to temporary restrictions on traffic and pedestrians, as well as damage to city lawns, sidewalks and roads. Service interruptions: The need to temporarily turn off hot water supply or (in extremely rare cases) heating for installation work.
Environmental benefits and costs
Environmental benefits: improved ecology: reconstruction leads to a significant reduction in heat losses (often by half) and, accordingly, to a reduction in fuel combustion in boiler houses. This reduces emissions of CO2 and other greenhouse gases, as well as harmful substances into the air. Reduced morbidity: stable heat supply and comfortable conditions in homes, especially in winter, contribute to a reduction in colds and other diseases among the population (especially children and the elderly). Environmental costs - Construction Phase Costs (Short-term) Noise and vibration pollution: Operation of construction equipment, affecting nearby residential and natural areas. Air pollution: emissions from construction equipment (diesel engines). Disturbance of soil and landscape: digging trenches, temporary deterioration of roads and sidewalks, management of construction waste (old pipes, soil). Impact on ecosystems: disturbance of green spaces or nearby water bodies during excavation works.
Indirect benefits and costs
Indirect benefits - reduced CO2 emissions, increased comfort and quality of life, increased investment attractiveness, reduced load on the system. Indirect costs - transport inconvenience (traffic jams), damage to urban infrastructure, noise and pollution, temporary disturbance of soil cover