Thermal Energy Conservation Project (TECP)

complete

The project enables the borrower to address urgent investment needs for the rehabilitation of the district heating networks in the cities of Buzau, Fagaras, Oltenita, Pascani and Ploiesti. The project will: The project will: The borrower is Romania, and the beneficiaries and implementing agencies are the district heating companies operating in the municipalities of Buzau, Fagaras, Oltenita, Pascani and Ploiesti. The proposed loan is US$ 45 million (ECU 36 million): 15 years' maturity and five years' grace period. The total project cost is estimated at US$ 74.38 million (ECU 59.5 million). The project was screened as B/0, requiring an environmental analysis. This was carried out for all five towns covered by the project by an independent international consultant. As part of the environmental due diligence, a quantitative analysis of air emissions for two scenarios was undertaken, comparing: The analysis demonstrated that the project will have a positive environmental impact as it will significantly reduce air emissions. All boilers will burn natural gas as the main fuel. The new boilers will comply with Romanian and European Union emission standards as shown below: Air emissions from new boilers (mg/Nm3) Project Particulates 5 Nitrous oxides 200 Sulphur dioxide 35 Air emissions from new boilers (mg/Nm3)EU standards Particulates 5 Nitrous oxides 350 Sulphur dioxide 35 Other project components will be designed and implemented in accordance with applicable Romanian laws and good international practices. The results of the environmental analysis were discussed with the local environmental authorities, who endorsed the conclusions presented by the consultants. Environmental and health and safety permits to commence construction and rehabilitation works have been issued by the Romanian regulatory authorities. Technical cooperation will focus on procurement, engineering design and a project management advisory service to ensure that the project is properly implemented.