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

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
  • For preparation
  • 45'731 UAH47'000 UAH
  • For implementation
  • 4'290'810 UAH7'841'817 UAH
  • For closing
  • 103'802 UAH103'800 UAH
    Average annual costs177'614 UAH399'631 UAH
    Project duration, incl.13 months13 months
  • Deadline for developing a FFS
  • 6 months6 months
  • Implementation period
  • 7 months7 months
    Service life420 months240 months
    Target indicatorsDefined Defined
    Technical Solution Status
    Active
    Rejected
    Components of a technical solution
    To components
    0
    To components
    0

    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