A loan of €20 million from the European Bank for Reconstruction and Development (EBRD) and a grant of €5 million from the Eastern Europe Energy Efficiency and Environment Partnership are to finance major upgrades to the district heating network in the city of Luhansk, Ukraine.
The project is to be run by the city-owned district heating company LuhanskTeploKomunEnergo (LTKE) and is expected to improve energy efficiency, cut carbon emissions and reduce consumer energy costs.
The work will include installation of 300 individual heating substations in residential buildings; modernisation of existing boiler houses; replacement of the obsolete network; replacement of obsolete small boilers with modern high efficiency gas boilers; decommissioning of basement boiler houses and installation of a dispatching and monitoring system.
The project is expected to begin in March and will take three years to complete, EBRD said. The city is currently tendering for contractors to perform the work.