The Catalog of Investment Projects (hereinafter – the Catalog) is the document which broadens ability of the city to receive investments from different sources (at least 7 possible sources of financing are envisaged for the implementation of the Ternopil SEAP), and improves efficiency of SEAP tasks fulfillment.

Information is provided in the Catalog in terms of municipal sectors:

1) water supply and sewage;

2) heat supply;

3) residential buildings;

4) public buildings;

5) transport; and

6) outdoor lighting, etc.

For each municipal sector, a list of project proposals is suggested. All of the financial indicators of the projects are evaluated in view of a 15-year planning horizon. To assess the financial flows of the projects, a forecast on prices for energy and energy services was used, and the amount of investments and economic performance indicators are presented for each project proposal.

It is proposed to finance the Sustainable Energy Action Plan of the city from several financial sources (funds from international banking institutions, private investors etc. and implement the schemes with ESCO participation). To achieve the maximum efficiency in the spending of municipal budget funds, it is also suggested to involve co-financing and public-private partnership mechanisms, as well as create a favorable investment climate and provide local guarantees for the implementation of energy efficiency projects.

A chart showing the distribution of financing by sectors is presented below. The total amount of investment projects financing for the period 2015-2020 is UAH 2,586.4 mln.

 Financing of SEAP Projects and Programs in 2015-2025 (UAH mln.)

 

HEAT SUPPLY

Total funding envisaged for 11 proposed projects is UAH 518.5 mln.

The district heating of the city is provided by CU “Ternopilmiskteplokomunenergo”. The total installed capacity of the 38 boiler houses of the utility is 648.3 Gcal\h, of which 37 function on natural gas; one boiler house (0.258 Gcal/h capacity) runs on solid fuel.The connected heat load of the utility for heating is 194.6 Gcal/h, for hot water supply – 40.324 Gcal/h. The pumping equipment used at most boiler houses is characterized by significant energy consumption. The specific electricity consumption for heat energy production (37.5 kWh\Gcal in average) is too high. In addition, the number of disconnections from the district heating system is high in the city – over 34% of consumers. Moreover, all newly constructed  or planned buildings are/will be equipped with automated boiler houses or individual heating systems.

The projects included in the catalog of investment projects envisage: installation of boilers fueled by wooden chips, installation of condensation units for fume gas heat utilization, implementation of a SCADA heat supply process dispatching system, installation of network pumps with frequency converters in the boiler houses, replacement of heating pipeline sections with modern pre-insulated pipes, installation of solar collectors for hot water heating.

If all measures in the heat generation and transportation sector are implemented, it is possible to reduce CO₂ emissions by 36,747 t/year or 7.95% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 20.102 mln m³ of natural gas.

The USAID Project conducted energy audits and prepared the relevant reportwith recommendations on the required energy efficiency measures in public buildings, and also provided support to the city in developing technical solutions for project implementation.

The implementation of the project on municipal infrastructure modernization with the support of EBRD and E5P Fundstarted in Ternopil in 2015. EBRD allocated €10 mln of loan funds for implementing project measures. Another €5 mln non-recoverable grant was provided by E5P Fund. The project will be implemented in 2015-2017. The funds are invested in the reconstruction and modernization of the municipal heating infrastructure. It is planned in the process of reconstruction to install solar collectors, heat pumps, construct a boiler house fueled by biomass, etc.

In addition, Ternopil was included in the project “Energy Efficiency Improvement in District Heating Sector of Ukraine”which is implemented in cooperation with the World Bank. The cost of implementation of the energy efficiency measures in the city will be$24.67 million. CU “Ternopilmiskteplokomunenergo” intends to spend this money for reconstructing nine boiler houses, constructing two co-generation plants, installating 31 individual heat substation and automated system of technology processes management allowing for real time monitoring of the municipal heat supply systems. The project is implemented with the money of IBRD loan.

The third large project in which the city takes part is”DemoUkrainaDH – Ternopil”.  Total amount of investments is€770 th. (of which €300 th. – grant funds, €355 th. – loan from NEFCO). The project envisages installation of the individual heat substations (IHS) in residential buildings (total of 25 IHSs) which will allow for heat supply control according to the outdoor air temperature, and for billing on the basis of measured heat. As a result of the proposed measures, two central heat substations will be closed, and instead of the 4-pipe system a 2-pipe system will be introduced for hot water preparation in every building. One boiler (4.5 MW capacity) in the boiler house will be equipped with the burners for burning pellets (this is a new approach for Ukraine). According to the preliminary estimate, the project will lead to reduction in gas consumption by more than 90% and total reduction of heat energy consumption by more than 5%.

 

WATER SUPPLY AND SEWAGE

Total funding envisaged for 2 proposed projects is UAH 956.9 mln.

Water supply and sewage services are provided to consumers by CU “Ternopilvodokanal”. Water supply is provided by the communal system and local water pipelines belonging to industrial companies. The sewage system consists of automatic flow tanks, sewage pumping stations, pressure pipelines and sewage treatment facilities. The technical condition of the facilities and equipment in the water supply networks is unsatisfactory – 182 km (53%) of it is in unsatisfactory and emergency condition. There were 328 water supply network accidents in 2014. There are 267 km of water supply network pipelines with a service life of over 25 years, which is 78% of the total length. The technical condition of the sewage networks is unsatisfactory too: 134 km (48%) is in unsatisfactory and emergency condition. Over 70% of the total length of the sewage network pipelines has been in service for over 25 years.

Project proposals envisage:construction of a station for iron elimination in water, procurement of equipment for the drinking water chemical and bacteriological laboratory and sewage laboratory, reconstruction of the sewage treatment facilities, modernization of the sewage pumping units, installation of a system for managing the water supply and sewage objects, procurement of specialized equipment, equipping the consumers with the building-level meters, optimization of the water supply and distribution systems, rehabilitation of the water supply and sewage networks.

If all measures in the water supply and sewage sector are implemented, it is possible to reduce CO₂ emissions by 8,784 t/year or 1.9% of the baseline. The total reduction of energy resources consumption is expected to amount to 9,631 MWh of electricity a year.

“Ternopilvodokanal”, together with the World Bank, is implementing theproject on reconstruction of the water supply and sewage networks. The total amount of investments is over USD 36,6 mln. It is planned within the project framework to procure new equipment for the laboratories, equipment for network servicing. It is also planned to conduct a complete reconstruction of certain objects at the sewage treatment facilities, introduce a modern system of biological treatment of sewage effluent, with air supply control. It is also planned to construct a unit for the mechanical de-hydration of sludge, introduce a new disinfection system, replace the underground pipelines etc.

 

TRANSPORT

Total funding envisaged for 5 proposed projects is UAH 87.8 mln.

Municipal passenger transportation is conducted by trolleybuses, buses, including small capacity passenger buses, taxies and private automobile transport. As of 2013, the public passenger transportation was conducted by: three communal (“Miskavtotrans”, “Ternopilske ATP-16127” and “Ternopilelectrotrans”) and 7 private carriers which service the city residents on 42 routes. Altogether, there are 268 vehicles involved in public passenger transportation (49 trolleybuses, 21 bus, 198 private fixed-route taxies). Passenger transportation with electric transport is conducted by CU “Ternopilelectrotrans”; a significant share of its rolling stock is outdated and is characterized by significant electricity consumption. The larger share of the municipal bus stock consists of medium and small capacity buses.

Investment projects in the transport sector provide for: development of the municipal electric transport, introduction of an automated traffic dispatch system, switching public transportation to the use of biodiesel fuel, popularization of bicycles and the construction of bicycle lanes.

If all measures in the transport sector are implemented, it is possible to reduce CO₂ emissions by 2,882 t/year or 0.62% of the baseline. Total reduction of energy resources consumption is expected in the amount equivalent to 1.443 mln m³ of natural gas.

 

OUTDOOR LIGHTING

Total funding envisaged for 2 proposed projects is UAH 29.1 mln.

Works on the operation and servicing of the municipal outdoor lighting networks are conducted by CU “Ternopilmisksvitlo”. For providing outdoor lighting, the city uses 341 km of electric lines, of which 157 km are cable lines and 184 km are aerial lines, as well as 94 transforming stations. There are 345 km of lighted streets and roads in the city. The actual amount of outdoor lighting operation time is 3,743 h/year. 8,502 lighting units are used for outdoor lighting in the streets, 23% of which are equipped with mercury arc fluorescent lamps with low luminous efficiency and high specific energy consumption.

The key directions of the investment project in this sector provide for: replacement of the lighting fixtures with energy efficient LED lamps and the introduction of a system for outdoor lighting management.

If all measures in the outdoor lighting sector included in the investment catalog are implemented, it is possible to reduce CO₂ emissions by 1,366 t/year or 0.3% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 1,178 MWh of electricity a year.

Within the framework of the Program of Ternopil Energy Efficiency Transformation,with the World Bank support, the Project on conducting an audit and modernization of the outdoor lighting system and Project on timing, dimming and control of outdoor lighting, is slated for implementation over 2016-2018.

 

PUBLIC BUILDINGS

Total funding envisaged for the projects in the sector is UAH 390.2 mln.

As of 2013, there are 122 public buildings in Ternopil financed from the municipal budget. Their total heated space is 375,900 m². Among the buildings subordinated to the city council, the largest share belongs to the institutions of the education and culture department – 69% (258 th. m²) and health protection department – 21% (74 th. m²).  Public buildings are characterized by significant heat losses through the building envelopes and require a significant amount of heat energy for heating the premises. In most of these buildings, no capital renovations have been conducted.

Project proposals for public buildings include: improvement of the energy management system; modernization of the indoor lighting systems; installation of individual heat substations; thermal modernization of the educational and health protection establishments; converting their heat supply to autonomous renewable energy sources.

The USAID Project developed a pre-feasibility study for 82 of the public buildings of the city. Ternopil submitted an application and necessary documents for participation in the joint Minregion and EIB project “Municipal Infrastructure Development Program in Ukraine” worth €28 mln. for financing of the sub-project “Deep thermal modernization of educational establishments of Ternopil”.

The implementation of the project proposals in the sector of public buildings would reduce CO₂ emissions into the atmosphere by 8,097 t/year or 1.75% of the baseline. The total reduction of energy resources consumption is expected to amount of 3,954 m³ of natural gas a year.

 

RESIDENTIAL BUILDINGS

Total funding envisaged for the projects in the sector is UAH 603.9 mln.

The residential housing stock of the city consists of 5,524 buildings, 4,432 of which are private buildings and 1,092– multi-apartment buildings. The total space of the buildings is 3,089,496 m²and includes 57,300 apartments, with a total residential space of 1,845,388 m². Most residential buildings were constructed in the period of 1975-1985 and have significant heat losses through the building envelopes. 60% of the internal building engineering systems are in unsatisfactory condition, which leads to a significant number of accidents. About 33% of the residential buildings require capital renovation.

The key directions of the projects from the investment catalog in this sector include: restoration of engineering systems in the residential buildings; installation of household gas meters; switching households to energy saving lighting fixtures; the comprehensive thermal rehabilitation of the residential buildings, including condominium buildings; the reconstruction of the district heating system with the installation of automated individual heat substations; conducting public outreach campaigns for residents, popularizing energy saving ideas and energy efficiency among residents.

The general reduction of CO₂ emissions in the residential (building) sector on the stage of heat consumption is 44,285 t/year or 9.58% of the baseline. The total annual reduction of energy resources consumption is expected to amount to 17.646 mln m³ of natural gas.