Sector
Municipal infrastructure and services
Stream
Restoration, development and modernization of district heating systems
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
- Commercial Case
- Financial Case
- Management Case
General information
Description of the project
The project envisages construction work on the reconstruction of heating networks along Ozerna Street in one turn. The laying of the heating main is envisaged along Ozerna Street along existing reinforced concrete trays with backfilling with sand and subsequent backfilling with soil from dumps. The reconstruction of the heating main is envisaged without interfering with existing thermal chambers, supporting and enclosing structures. The laying of heating networks is envisaged without changing the external geometric dimensions of the heating main.
The purpose of the project
Main goal:
Improving the quality of services
Description of the purpose of the project and ways to achieve it
The pipelines that are subject to reconstruction are the main section for supplying heat energy to consumers. The pipelines are in a state of emergency and require complete replacement. To ensure trouble-free and continuous operation of the heating networks, it is necessary to replace part of the pipelines on Ozerna Street. Pre-insulated pipelines in a polyethylene shell will be used, and shut-off valves for the heating network will be installed. The pipelines are planned to be laid below the depth of soil freezing. The circulation of network water in the heating network is carried out by network pumping units at the heat energy source in which a backup power source is installed. The lowering of the network water of the heating network is carried out at the lower points. Protection of pre-insulated pipelines from additional load is carried out by installing existing unloading reinforced concrete trays under the roadway.
Problems and solutions resulting from project implementation
Problem:
The pipelines that are subject to reconstruction are the main section for supplying thermal energy to consumers. The pipelines are in an emergency condition and require complete replacement
Solution:
To ensure trouble-free and continuous operation of the heating networks, it is necessary to replace part of the pipelines along Ozerna Street
Socio-economic context
Indicator
Value
Number of people who will use the service
21 thous. people
Strategic Case
Strategic feasibility of the project
Sector
Municipal infrastructure and services
Subsector
District Heating
Stream
Restoration, development and modernization of district heating systems
Strategic document
Стратегія розвитку територіальної громади
Task
2.1.2 Providing heat to community residents
Project objectives
Project objectives were not specified by the initiator
Project Sustainable Development Goals
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?
None of the options are applicable
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:
None of the options are applicable
Does the project provide for improving women's access to services?
The project will create jobs available to women (temporarily or permanently)
[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
Reconstruction of heating networks from VT 819-1/7 to VT 819-1/9 on Ozerna Street in Mykolaiv
Technical Solution 2
New construction of part of the heating networks from VT 819-1/7 to VT 819-1/9 along Ozerna Street in Mykolaiv
Total costs13'500'000 UAH26'500'000 UAH
Average annual costs140'532 UAH14'053'200 UAH
Project duration, incl.3 months5 months
Service life240 months300 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?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Has an analysis of available procurement options been conducted for the technical solution?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget13'500'000 UAH26'500'000 UAH
Capital costs13'500'000 UAH26'500'000 UAH
Operational costs0 UAH0 UAH
Preliminary cost breakdown
Operating costs for implementation0 UAH0 UAH
For preparation405'000 UAH1'325'000 UAH
For implementation8'370'000 UAH15'900'000 UAH
For operation2'970'000 UAH5'300'000 UAH
For closing1'755'000 UAH3'975'000 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 UnitТеплопостачаня
Service Unit Cost630 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?
No – analysis not performed
[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?
The project does not fall under the PPP format by its nature/character
[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?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs
Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?
None of the options are applicable
Project Approval History
DateDecision NumberPortfolioProject StatusDecisionReasons
23/12/2025SP-L-231225-2D56D9E7Community SPInvestment Feasibility StudyInclude-
30/12/2025SPP-L-301225-F5ADE638Community SPPInvestment Feasibility StudyNot approvedProject cost calculations were not provided in accordance with the MFU order dated 06/23/2025 No. 316, the selected sources of financing were not justified in accordance with the MFU order dated 02/28/2025 No. 131