Installation of a production line for fuel pellets and a solid fuel water heating boiler for the Teplokomunenergo Commune
Sector
Municipal infrastructure and services
Stream
Improving energy efficiency in public buildings
Maturity level
88
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
- Summary
General information
Description of the project
It is planned to install a line for the production of pellets from waste from forestry, agricultural and other activities of enterprises in the district.
The purpose of the project
Main Goal:
Improving the quality of services
Secondary Goal:
Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions
Description of the purpose of the project and ways to achieve it
The project aims to produce thermal energy through the use of cheap biofuel of its own production from wood waste after cleaning urban and forest plantations and crop residues.
Problems and solutions resulting from project implementation
The installed solid fuel boiler KVr (KV) - 2.0 has insufficient capacity to fully provide heat supply services in the event of gas supply outages. The city's municipal services supply the KP ".Teplokomunenergo" with wood waste after sanitary cleaning of urban and forest plantations. There is an opportunity to obtain inexpensive crop residues in the community's farms. The pellet production line will allow the adaptation of raw materials for the needs of the enterprise.
Socio-economic context
Indicator
Value
Number of people who will use the service
6200 human
Strategic Case
Strategic feasibility of the project
Sector
Municipal infrastructure and services
Subsector
Urban planning and landscaping
Stream
Improving energy efficiency in public buildings
Strategic document
Стратегія розвитку територіальної громади
Task
3.3.2 Improving the energy efficiency of existing facilities in the community and introducing alternative energy sources
Project objectives
Project objectives were not specified by the initiator
Project Sustainable Development Goals
Demand for the service and its dynamics
What methodology was used to estimate demand?
Дослідження досвіду виробників теплової енергії, що вже використовують подібні методи роботи, аналіз міграції та зростання кількості ВПО в громаді
[Response was provided in the Preliminary Investment Feasibility Study]
Has data from external sources been used in the demand assessment?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Does the demand forecast take into account the latest demographic and economic forecasts?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
60 t
Economic justification
Analysis of the project's impact on ecology and climate change
Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?
Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Is the proposed project expected to significantly harm any of the following climate or environmental objectives?
None of the options are applicable
Project sustainability and inclusivity
Identify potential gender risks of the project and indicate possible ways to overcome them:
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Does the project provide for improving women's access to services?
Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]
Are civil society organizations representing women and vulnerable groups included in the consultation process?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Alternative technical solutions
Technical Solution 1
Installation of a fuel pellet production line and a solid fuel water heating boiler
Technical Solution 2
Installation of a solid fuel water heating boiler
Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)12'500'000 UAH12'500'000 UAH
For preparation500'000 UAH500'000 UAH
For implementation12'000'000 UAH12'000'000 UAH
Project operation and closure cost1'500'000 UAH700'000 UAH
For operation1'200'000 UAH500'000 UAH
For closing300'000 UAH200'000 UAH
Average annual costs2'000'000 UAH0 UAH
Project duration, incl.36 months20 months
Deadline for developing a FFS8 months4 months
Implementation period28 months16 months
Service life240 months240 months
Target indicatorsDefined Defined
Technical Solution Status
Active
[The technical approach was selected for further detailed analysis or implementation.]
Rejected
[The technical approach was not selected for further detailed analysis or implementation.]
Components of a technical solution
Commercial Justification
Supplier and contractor market assessment
Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Is the project of interest to small and medium-sized enterprises?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Will the project involve national or international suppliers and contractors?
Yes, only national
[Response was provided in the Preliminary Investment Feasibility Study]
[Response was provided in the Preliminary Investment Feasibility Study]
Has an analysis of available procurement options been conducted for the technical solution?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget14'000'000 UAH13'200'000 UAH
Project cost (preparation and implementation)12'500'000 UAH12'500'000 UAH
For preparation500'000 UAH500'000 UAH
For implementation12'000'000 UAH12'000'000 UAH
Project operation and closure cost1'500'000 UAH700'000 UAH
For operation1'200'000 UAH500'000 UAH
For closing300'000 UAH200'000 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[Response was provided in the Investment Feasibility Study]
Average project cost per service recipient
Service UnitГкал
Service Unit Cost3'850 UAH
Profitability of the project
Is the project expected to generate income?NoNo
Availability of services
Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs
[Response was provided in the Preliminary Investment Feasibility Study]
Project Financing Mechanisms
Are funding sources and mechanisms identified?
Source and MechanismYesNo
Funding Sources
Approved Funds0 UAH0 UAH
Expected Funds0 UAH0 UAH
Public-private partnership
Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
Yes, the project is suitable for PPP
[Response was provided in the Preliminary Investment Feasibility Study]
Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Management Rationale
Team competencies
Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of available procurement options
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Business case - analysis of the market environment
[Response was provided in the Preliminary Investment Feasibility Study]
Does the team have experience implementing similar projects?
Partially, we have limited experience
[Response was provided in the Preliminary Investment Feasibility Study]
Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
Economic justification - social and gender analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - public consultation
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - environmental expertise
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - project management
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - communication with stakeholders
[Response was provided in the Preliminary Investment Feasibility Study]
Economic justification - economic analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management justification - other
[Response was provided in the Preliminary Investment Feasibility Study]
Financial analysis - financial analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - risk management
[Response was provided in the Preliminary Investment Feasibility Study]
Strategic rationale - demand analysis
[Response was provided in the Preliminary Investment Feasibility Study]
Management rationale - working with international financial organizations (IFOs)
[Response was provided in the Preliminary Investment Feasibility Study]
Management justification - legal support
[Response was provided in the Preliminary Investment Feasibility Study]
Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options
[Response was provided in the Preliminary Investment Feasibility Study]
Risk assessment
Financial riskDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs
Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?
Finalization of existing documentation for the preparation of a preliminary feasibility study
[Response was provided in the Investment Feasibility Study]
Updating existing documentation regarding the preparation of the feasibility study
[Response was provided in the Investment Feasibility Study]
Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Investment Feasibility Study]
Project Approval History
DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
02/10/2025SP-L-021025-0E701630Community SPInvestment Feasibility StudyInclude--
25/03/2026SP-N-250326-FFD378EEState SPInvestment Feasibility StudyAwaiting reviewThe project corresponds to the direction "Rehabilitation, modernization and development of centralized and decentralized heating systems" and should be redirected to the appropriate sectoral portfolio-
21/10/2025SPP-L-211025-7F847E2DCommunity SPPInvestment Feasibility StudyInclude-88