Sector
Municipal infrastructure and services
Stream
Reconstruction of the gas supply system of residential buildings
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion
- Preparation
- General information
- Strategic Case
- Economic Case
- Financial Case
- Management Case
General information
Description of the project
Reconstruction of the gas supply system of residential buildings at the following addresses: Kharkiv region, Lozov district, Zlatopil city, 17 Kharkivska st.; 21 Kharkivska st.; 8 Sportyvna st.; 8A Sportyvna st.; 20 Hromadska st.; 22 Hromadska st.
The purpose of the project
Main goal:
Rebuilding the damaged/destroyed
Secondary goal:
Improving the equality of wealth distribution, Improving the condition of infrastructure, Improving the quality of services
Description of the purpose of the project and ways to achieve it
The purpose of the project is to ensure safe, reliable and uninterrupted gas supply to residential buildings in the city of Zlatopil by reconstructing and modernizing existing gas distribution networks in accordance with current technical and safety standards.
The methods for achieving the goal include conducting a technical inspection of existing networks, replacing physically and morally worn-out gas pipelines and equipment, installing modern shut-off and control valves, implementing energy-efficient and safe technological solutions, as well as bringing the gas supply system into compliance with regulatory requirements with subsequent commissioning.
The justification for the gap between the current and target states is that today the city's gas supply system for residential buildings is characterized by a high level of wear and tear, increased accident rate and risks for the population, which does not meet the requirements for safety and quality of services, while the target state provides for stable, safe and efficient gas supply with minimal resource losses and reduced operational risks.
Problems and solutions resulting from project implementation
Key problems to be solved by the project implementation
The project implementation is aimed at solving the following key problems:
high level of accidents and risks to the safety of the population associated with the operation of worn-out gas networks;
inability to ensure stable and uninterrupted gas supply and, accordingly, heat supply to residential buildings;
energy losses and increased operating costs due to technical imperfections of the networks;
non-compliance of the gas supply system with current regulatory requirements.
The relevance of these problems is due to the consequences of military operations, the deterioration of the technical condition of the infrastructure and the urgent need to provide basic housing and communal services to the population. If they are not resolved, a further increase in accidents, prolonged lack of heat supply, social tension and increased threats to the life and health of residents is possible.
Expected positive changes from the project implementation include:
increasing the level of safety and reliability of gas supply;
restoration and stabilization of heat supply to residential buildings;
reduction of gas losses and operating costs;
improvement of the quality of life of the population and increasing the resilience of the city's infrastructure to emergencies.
Socio-economic context
Indicator
Value
Population in the geographical area of influence of the project
300 human
Strategic Case
Strategic feasibility of the project
Sector
Municipal infrastructure and services
Subsector
District Heating
Stream
Reconstruction of the gas supply system of residential buildings
Strategic document
Task
2.2.1. Ensure proper functioning and modernization of municipal institutions and civil and critical infrastructure facilities
Project objectives
Indicator
Base value
Target value
Demand for the service and its dynamics
Indicator
Year
Demand
Annual demand for services/infrastructure
1
300 human
Economic justification
Alternative technical solutions
Technical Solution 1
Reconstruction of the gas supply system of residential buildings
Technical Solution 2
Current repairs of existing gas distribution networks
Total costs2'000'000 UAH1'500'000 UAH
Average annual costs100'000 UAH100 UAH
Project duration, incl.13 months13 months
Service life240 months120 months
Target indicatorsDefined Defined
Technical Solution Status
Active
Rejected
Components of a technical solution
Financial justification
Total project budget
Total preliminary budget2'000'000 UAH1'500'000 UAH
Capital costs2'000'000 UAH1'500'000 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation0 UAH0 UAH
For implementation2'000'000 UAH1'500'000 UAH
For operation0 UAH0 UAH
For closing0 UAH0 UAH
Average project cost per service recipient
Service UnitСередня вартість проєкту
Service Unit Cost6'700 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 Funds2'000'000 UAH0 UAH
Expected Funds2'000'000 UAH0 UAH
Management Rationale
Risk assessment
Financial riskDefinedUndefined
Results of the feasibility analysis
Economic Analysis
Social benefits and costs
Social benefits: The implementation of the gas supply system reconstruction project provides a significant increase in the level of safety of the population by reducing the risks of accidents, gas leaks and emergencies. The renovation of engineering networks contributes to the uninterrupted and stable provision of gas supply services for about 300 residents, which directly affects the improvement of living conditions and quality of life. The project also reduces social tension associated with frequent emergency shutdowns and increases the level of public trust in local governments and municipal services. Social costs: Social costs are temporary in nature and are associated with short-term inconveniences for residents during the period of construction and installation works (access restrictions, temporary gas supply shutdowns). After the completion of the works, there is no negative social impact.
Environmental benefits and costs
Environmental benefits: Reconstruction of the gas supply system helps reduce natural gas leaks, which reduces the negative impact on atmospheric air and reduces methane emissions - a greenhouse gas with a high global warming potential. The use of modern materials and technical solutions increases the energy efficiency of the network and reduces resource losses. In the long term, the project contributes to the environmentally safe operation of gas infrastructure within the settlement. Environmental costs: Environmental costs are insignificant and short-term in nature. They are associated with excavation and installation work (temporary disturbance of the soil cover, noise, dust). All impacts are local, controlled and eliminated by recultivation of the territory after completion of the work.
Indirect benefits and costs
Indirect benefits: The implementation of the project creates a positive multiplier effect for the territorial community, in particular by increasing the investment attractiveness of residential development and adjacent territories. Reliable gas supply contributes to the growth of housing values, improving conditions for the development of small businesses and increasing the overall level of infrastructure provision. The project also reduces future costs for emergency and restoration work and the elimination of the consequences of emergencies. Indirect costs: Indirect costs are minimal and may manifest themselves in the form of temporary restrictions on pedestrian or transport traffic in the work area. There are no long-term indirect costs from the implementation of the project.