€21.9 million loan for district heating improvements in Odessa

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Thomas Maier,
Infrastructure
Business
Director, EBRD
 
Kiev, Ukraine — (METERING.COM) — December 17, 2008 – A €21.9 million municipal loan has been granted by the European Bank for Reconstruction and Development (EBRD) for metering and other improvements to the district heating system in the city of Odessa.
 
The project will allow the District Heating Company of Odessa (Teplopostachannya Mista Odesi, TMO) to implement a series of measures aimed at a reduction of natural gas consumption by the district heating system and an improvement in the quality of service. Among these is partial metering of consumption in Odessa, with the aim of making a gradual switch from production controlled to consumer controlled consumption metering operations and a consumption-based tariff system.

Technical Cooperation funds for the project worth €0.8 million to finance, among other things, the Feasibility Study and Implementation Support have been provided by the governments of Sweden, France and the United Kingdom.
 
Thomas Maier, EBRD’s infrastructure business director said: “Given the scale of losses and operating inefficiencies, investment in district heating is the first priority for any Ukrainian city. By signing this project, the Odessa authorities are demonstrating their commitment to tackling this issue.”

Once the project has been implemented, many customers will be able to regulate how much heat they purchase and, through metering, they will be able to link the cost of heat with actual consumption, he added.
 
The European Bank for Reconstruction and Development is the biggest financial investor in Ukraine. As of November 2008, it had committed over €3.97 billion through 163 projects.