Kyiv preparing investment plan to attract $100 mln to develop heating system

Kyiv preparing investment plan to attract $100 mln to develop heating system

Kyiv City together with its international partners is working to make an investment plan that would help bring $100 million in investment to resolve the most burning issues in the city’s district heating system.

Formulating a clear and consistent development strategy for the Kyivteploenergo utility company will then allow for a more long-term and global partnership, bringing about systemic changes to Kyiv’s DH network and improving the quality of the services provided to Kyivites, the press service of the Kyiv City State Administration said in a report.

These were the key issues mentioned during the meeting between the representatives of the Kyiv City State Administration, the Kyivteploenergo utility company and the European Bank for Reconstruction and Development, the International Finance Corporation, the U.S. Agency for International Development (USAID), where the Memorandum of Understanding was signed.

“Kyiv’s district heating system is one of the largest in Europe. The estimated investment needs amount to around $1 billion, and the city intends to work gradually towards attracting these funds. We have covered significant ground with the international financial institutions and USAID in particular in terms of supporting the newly-established Kyivteploenergo company – both in terms of reshaping it to meet European standards and working to attract investments into technical measures. We plan to do much more to transform Kyivteploenergo into a customer-oriented, technological, transparent company, providing high-quality district heating and hot water supply services,” Deputy Head of the KCSA Petro Panteleiev said.

The Acting Deputy Regional Mission Director for Ukraine and Belarus of the United States Agency for International Development, Mr. Farhad Ghaussy, noted that Kyiv City had already assembled a professional team of experts who would work together to transform this company into a model district heating utility.

According to the Deputy Head of the European Bank of Reconstruction and Development, Ms. Marina Petrov, two strands of investment are envisioned: the first one foresees investments amounting to around $100 million to undertake measures of primary importance, while the second one represents a global long-term program that will also involve comprehensive system modernization.

“Hopefully, the partners will be able to outline the primary investment plan in the coming two to three months – we would like them to identify the ‘weakest spots’ in the system, addressing which will allow to greatly improve the overall efficiency in terms of investment. Next year, we plan to have the first loan agreement signed. Once the company’s development plan is in place, we will discuss the issue of long-term partnership,” Petrov noted.

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