Project description
and objectives:
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The proposed project is designed to increase the overall efficiency of the
district heating system in the City of Timisoara. The project represents a
modernization and an extension of the existing co-generation plant.
Increased efficiency will enhance the reliability and quality of supply of
both electricity to the power grid and heat to the district heating network
allowing the Timisoara municipal district heating company, Colterm S.A., to
reduce generation and maintenance costs.
The Bank’s funds will be used to finance the installation of new gas and steam
turbines with hot water recovery boilers for co-generation of heat and
electricity.
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Transition
impact:
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Commercialisation and improved system management
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The proposed project will improve the performance of the district heating
system through improved commercialisation of the municipal district heating
company.
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This will be supported by a corporate development programme to improve the
commercial performance and standards of corporate governance of the Company,
tariff structure reform and operating subsidies reform.
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A service agreement will be concluded between Colterm S.A. and the City
providing for service and commercial performance standards to be achieved by
the Company.
Framework for markets
Full cost recovery tariffs and increased transparency in billings will also
improve customer satisfaction and encourage energy conservation.
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The client:
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Colterm S.A., the municipal district heating company owned by the City of
Timisoara.
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EBRD
finance:
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Loan of EUR 15 million to Colterm S.A. structured as A/B loan with an EBRD A
Loan of up to EUR 10 million and a B Loan to a participating bank of up to EUR
5 million. The Loan will be guaranteed by the City of Timisoara.
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Total project cost:
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EUR 21 million.
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Environmental impact:
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Screened B/1. Significant environmental benefits can be expected from the
rehabilitation of existing district heating network. Any adverse impacts are
expected to be limited to short-term environmental, health and safety issues
arising from installation works, which can be adequately mitigated by taking
environmental protection measures into consideration in project planning and
work practises. An environmental due diligence of the proposed transaction is
currently underway. An EAP will be developed and agreed with the Client based
on the findings of the environmental due diligence. A summary of the project
impacts along with the required mitigation measure will be released locally to
affected stakeholders prior to Final Review.
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Technical
cooperation:
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The project has already benefited from a technical, financial and
institutional feasibility study funded from the UK Government and from an
environmental due diligence funded by UNDP/GEF.
It is expected that further Technical Co-operation assistance will be provided
to assist Colterm S.A. in institution-building and training component in
support of a corporate development programme.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Mihail Scvortov, Operation Leader: scvortom@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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