District Heating Project

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The District Heating Project for Bulgaria aims to assist the Sofia and Pernik District Heating Companies (DHC) to: (i) improve the quality of their services; (ii) improve their financial viability; and (iii) increase environmentally friendly operations through energy conservation and pollution reduction measures. There are two project components comprising several sub-components. Component 1 a) rehabilitates the heat transmission and distribution network by installing pre-insulated pipes, modern ball and butterfly valves, compensators, and thermal insulation; b) assembles and installs 1, 097 sub-stations; and c) provides technical assistance through Sofia private sector participation consulting services, consultants that update a financial management system, and consultants who will launch a public awareness campaign, and it supports additional designs and supervision, auditing costs, and incremental operating costs. Component 2 a) supports the cost of assembling 700 sub-stations and helps purchase additional components like heat exchangers and pumps for the sub-stations; b) finances the replacement of heat transmission pipes with pre-insulated pipes and supports the purchase of variable speed pumps and monitoring systems for the district heating network; c) supports the replacement of an old and outdated electrostatic precipitator for a boiler in the lignite fired Combined Heat and Power (CHP) plant; and d) provides technical assistance for a public awareness campaign, and design and supervision, as well as funding auditing costs, incremental operating costs, and maintenance of the financial management system.