District Heating Efficiency Improvement Project

The District Heating Efficiency Improvement Project (DHEIP) implemented with the World Bank financial support (40.5 mil USD) became effective on August 14, 2015 and has the objective to contribute to improved operational efficiency and financial viability of Termoelectrica SA and to improve quality and reliability of heating services delivered to the population in Chisinau. The Loan Agreement no. 8451-MD for the Project was signed on April 15, 2015.
  • Total funding 40,5 million USD
  • Implementation period 2015-08-14

The Beneficiaries of the DHEIP are:

  • The population of Chisinau at large through: (i) increased efficiency of the district heating sector, and (ii) increased reliability of district heating services.
  • The Moldovan district heating sector stakeholders, including Termoelectrica SA, as well as Moldovagaz SA and Chisinau-Gaz SA through Termoelectrica S.A. increased operational efficiency and improved corporate governance.

The Project consists of three Parts, namely: Investments for the District Heating System, Support for Streamlining Operations, Project Management and Technical Assistance, and includes the following activities:

Investment component:

  •  Construction of new Pumping Station (three pumps, three motors and VSD, with total PS capacity of 4200 m3/h at a height of 85 m) and new DH network to allow interconnection of CHP-1 and CHP-2 DH circuits and enable the operation of the Chisinau DH system without CHP-1 (about 350 m, DN700) – to ensure the continuity of heating service provision to the area of Chisinau supplied by CHP-1 and improve the efficiency and reliability of the DH system;
  • Modernization of three main Pumping Stations (PS-8, PS-12 and PS-13), including the replacement of pumps, motors, VSDs, and related equipment (total capacity of PS-8 is 8250 m3/h at the pumping height of 70 m, PS-12 - 6000 m3/h at the pumping height of 60 m, and PS-13 - 8250 m3/hat a height of 50 m. Total pumps - 9) - to reduce electricity consumption and provide for efficient operation of the DH system;
  • Rehabilitation of priority segments of Chisinau`s distribution network (circa 7200 m of DH networks, DN 150-900) - to ensure continued secure DH service and reduction of losses of heat and hot water;
  • Reconnection of selected public institutions, which were earlier disconnected, to the DH system, including installation of new Individual Heating Substations (IHSs) and associated piping (circa 126 IHSs/44 public institutions) and replacing the central heat substations with automated individual (building-level) heat substations in selected residential buildings and associated pipes (circa 340 IHSs) – to improve the usage of the system and to assure more efficient and secure heating and hot water services to consumers;
  • Technological upgrade of the pumping systems using VSDs in CHP-2 and HOB West (4 pumps, 4 motors, 6 VSDs and 6 sets of modern electrical equipment) – to reduce the power consumption and ensure efficient and safe operation of the DH system.

Consultancy component:

  • Environmental Audit for CHP-1 site (Review the actual status of CHP-1 territory and collecting the background information on the environmental situation; Review the policies, legal and administrative framework on environmental audit, decommissioning and remediation activities; Assessment of territorial pollution, Suggestions for alternative disposal strategies; Analysis of the environmental impact and the risks of decommissioning strategies, development of remediation action plans; Estimation of costs and presentation of the Final Audit Report with corresponding consultations/recommendations);
  • Elaboration of the Social Impact Mitigation Plan (SIMP)/Training within the staff reduction programme (through: (i) financing severance payments for staff of Termoelectrica SA selected in accordance with the terms and conditions of the SIMP, pursuant to the Borrower`s laws and regulations; (ii) carrying out Training activities to assist staff selected in accordance with the terms and conditions of the SIMP, in the pursuit of new employment opportunities; and (iii) designing and implementing grievance mechanisms);
  • Developing the Corporate Communication Strategy for Termoelectrica SA and implementation of Public Awareness Campaign (An effort for developing the core framework for Termoelectrica SA communication activities and initiation of such activities by developing the Corporate communication strategy and implementation of public awareness campaign for dissemination of the benefits of energy efficiency improvements and efficiently operating Chisinau`s DH system)

The DHEIP tentative completion date is June 30, 2020.