You're reading: IBRD, Regional Development Ministry finishing energy efficiency projects

The Second Urban Infrastructure Project (UIP-2) and the District Heating Energy Efficiency Project being implemented by the Regional Development, Construction, Housing and Utilities Economy Ministry of Ukraine using loans from the International Bank for Reconstruction and Development (IBRD) are at the final stage of restructuring.

“After completing the District Heating Energy Efficiency Project restructuring its total cost will be $315.5 million… Today the ministry is implementing two IBRD’s projects worth over $665 million… The project participant companies are conducting procurement agreed with the IBRD,” the ministry told Interfax-Ukraine.

The ministry said that it approved seven participants at the first stage of the District Heating Energy Efficiency Project. The loan of over $250 million was provided. Then the ministry started restructuring projects to remove companies that have not prepared for the project implementation and add new ones.

In May 2016, the ministry made the final decision to remove Ivano-Frankivskteplokomunenergo, Donetskmiskteplomerezha and Kirovohradteplo from the project.

The following companies are involved in the District Heating Energy Efficiency Project: Vinnytsiamiskteploenergo, Kharkivski Teplovi Merezhi, Khersonteploenergo, Miskteplovodenergia (Kamianets-Podilsky, Khmelnytsky region), Mykolaivoblteploenergo, Chernihiv combined heat and power plant, Dniproteploenergo and Ternopilteplokomunenergo.

“The approximate sum of the contracts signed in 2016 (under the two projects) will be $121 million. It is planned to use $63 million,” the ministry said.

The ministry said that the implementation of the Urban Infrastructure Project has been extended by 36 months. The project has been implemented since 2009.

“The situation did not affect the bank’s decision to recognize that the project was a success, to continue cooperation in this direction and even more than double financing for UIP-2 (from $140 million to $350 million),” the ministry said.

The ministry confirmed that the government inspected project implementation.

Consultants of the central group selected on May 12, 2016 by the tender panel of the ministry and agreed with the IBRD have started managing UIP-2.