Municipal Heating Project

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The Municipal Heating Project for the Russian Federation aims to alleviate the financial burden on municipal governments associated with the supply of district heating to the local population. There are four project components. The first finances systems rehabilitation including replacing coal and mazut-fired old heat-only boilers with modern gas-fired boilers, improving the quality of district heating circulation water, replacing old and worn district heating pipelines and armatures with modern pre-insulated pipes and fittings, replacing central tube-type substations and underground domestic hot water pipelines with advanced plate heat exchangers and control systems in individual buildings, replacing hydroelevators in the space heating circuits, flushing the secondary pipelines and radiators of buildings, and installing heating meters, among others. The second component supports the Central Project Development Unit (CPDU) and the third component funds the CPDU's operating expenses including but not limited to salaries if local staff, consultants, travel expenditures, office equipment, and office supplies. The third component also provides the cost of carrying out the audits of the project financial statements as well as the costs of carrying out periodic updates of the assessments of the credit-worthiness of cities participating in the project. The fourth component funds studies aimed at supporting the overall development of the district heating and communal services sector.