The Catalog of Investment Projects was developed as an annex to the Kryvyi Rih SEAP. It contains data on 32 projects in the following municipal sectors:

1) heat supply;

2) water supply and sewage;

3) public transport;

4) outdoor lighting;

5) public buildings;

6) residential buildings; and

7) public buildings of the tertiary sector, etc.

All financial indicators of the projects were assessed with a 15-year planning horizon in view. To assess the financial flows of the projects, forecasts of prices for energy carriers and energy services were used. The Chart of distribution of financing by sector is presented below. The total amount of investment project financing for the period of 2015-2025 is UAH 5,081.8 million.

 Financing of Kryvyi Rih SEAP Projects and Programs in 2015-2020 (UAH mln.)

HEAT SUPPLY

Total funding envisaged for 11 proposed projects is UAH 1,107.8 mln., average payback period – 1.7 years.

District heating (DH) in the city is provided by two entities (CU “Kryvorizhteplomerezha” and SE “Kryvorizka CHP”), as well as by corporate boiler houses that provide district heating and hot water supply services to the populace, public institutions, communal, and self-financing entities. A significant number of boiler houses have been in operation for more than 20 years. Many boilers are operated at lower pressures and temperatures. Gas burners and automation equipment are equipped with outdated circuits, controls, and instruments, and the automation equipment only ensures the safe operation of the boiler and is not aimed at maintaining an optimal and economic burning mode. Heat energy is generated in the boiler houses and transported to consumers through a system of heat networks. The heat networks in the city are worn out by more than 70%. The significant lack of capacity of the DH system (47%) leads to an increase of the heat energy losses in the municipal networks. The networks in certain sections are over three km long, which causes significant heat losses.

Projects in the Catalog of Investment Projects include modernization of 14 boilers with replacement burners and replacing the convection heating surface; replacement of 20 boilers with new energy efficient boilers; replacement of 20 main line pumps in the boiler houses; decentralization and optimization of the heat supply systems in five boiler houses, modernization of powerful boilers of the heat generating utilities, and liquidation of an open point of water supply in the boiler house. 

Implementing all measures in the heat generation and transportation sector would reduce CO₂ emissions by 131,991 t/year or 9.91% of the baseline. The total annual reduction of energy resources consumption would amount to 53,998,000 m³ of natural gas and 20,832 MWh of electricity.

On 22 June 2016, the Kryvyi Rih City Council supportedthe participation of CU “Kryvorizhteplomerezha” in the project “Ukraine’s Municipal Infrastructure Development Program”, which is implemented with a € 40 million credit line from the European Investment Bank for financing the “Decentralization of Heat Supply System with Removal from Service of Boiler House at PJSC “ArcelorMittal Kryvyi Rih” in Kryvyi Rih” subproject , which includes the reconstruction and optimization of the municipal heat supply system through its decentralization: installation of new boiler houses and removal from service of the old boiler house.The project is being considered by the Ministry of Finance and Ministry of Regional Development of Ukraine.

In 2016, the city resumed operation of the “DemoUkraina DH” program. Within this program is the “Reconstruction of DKMS-80 Boiler House and Connected Networks of CU “Kryvorizhteplomerezha” project. It includes the installation of one bio-boiler on pellets, the replacement of old boilers, and the modernization and installation of IHSs. Project cost is € 679,000. Financing is expected from NEFCO and Swedish International Development Agency (SIDA).

 

WATER SUPPLY AND SEWAGE

Total funding envisaged for six proposed projects is UAH 357.4 mln., average payback period – 1.1 years.

Water supply for the city and Kryvyi Rih region is provided from two main sources: Karachunivske reservoir and Pivdenne reservoir. The city has a district water supply system with a total output of 950,000 m³/day. Water supply is provided by two utilities: CU “Kryvbasvodokanal” and SIE “Kryvbaspromvodopostachannia”. A significant part of the utility’s fixed assets has been in continuous operation for 45-75 years, and equipment depreciation is about 90%. The functioning of the sewage system is complicated by the lack of the terrain necessary for constructing automatic flow tanks and, accordingly, electricity consumption for sewage pumping is high. 115 sewage pumping stations operate in the city, including 11 main pumping stations that pump sewage to the purification facilities and 104 pumping stations that operate within the municipal sewage scheme. 308 pumps are installed on the sewage pumping stations.

Project proposals in the Catalog of Investment Projects include technical re-equipment of outdated controls on pump electric drives of 15 water supply and 5 sewage pumping stations; reconstruction of water supply pumping station # 1; reconstruction of the central aeration station; division into sectors of the water supply distribution network and installation of a pressure control system.

Implementing all measures in the water supply and sewage sector would reduce CO₂ emissions by 63,237 t/year or 4.75% of the baseline. The total reduction of energy resources consumption would amount to 54,515 MWh of electricity a year.

On 22 June 2016, the Kryvyi Rih City Council supportedthe participation of CU “Kryvbasvodokanal” in the “Ukraine’s Municipal Infrastructure Development Program” project, which is implemented with a € 35 million credit line from the European Investment Bank for financing the “Modernization and Optimization of Water Supply System in Kryvyi Rih” subproject, which provides for the reconstruction and optimization of the municipal water supply system. The project is being considered by the Ministry of Finance and Ministry of Regional Development of Ukraine.

 

PUBLIC TRANSPORT

Total funding envisaged for two proposed projects is UAH 1.0 mln., average payback period – 0.2 years.

Passenger transportation in the city includes tram (including a speed tram), trolleybus and bus transportation. Every day, the municipal routes are serviced by 46 city tram cars on 13 routes, 35 speed tram cars on 3 routes and 65 trolleybuses on 22 routes. Passenger transportation on municipal bus routes for public use is provided by two transport companies and over 350 private carriers. Every day, 96 municipal bus routes are serviced by over 1,300 vehicles, and 360,000 persons use passenger transportation daily.

The Investment Catalog proposals on public transport include the following solutions: introducing a system for metering electricity for tram traction and converting the rolling stock of the municipal passenger buses to biodiesel fuel.

Implementing all measures in the transport sector would reduce CO₂ emissions by 15,655 t/year or 1.17% of the baseline. The total reduction of energy resources consumption would amount to 2,085 MWh of electricity a year.

 

OUTDOOR LIGHTING

Total funding envisaged for the proposed two projects is UAH 9.7 mln., average payback period – 3 years.     

Municipal street lighting is the responsibility of CU “Kryvorizke Misksvitlo”. Its balance sheet includes 1,824.4 km of air and cable power lines. In total, there are 53,518 lighting fixtures in the city streets with different types of lamps (DNaT type – 28,100 pcs., DRL type – 9,206 pcs., fluorescent – 16,046 pcs., LED – 166 pcs.). The average amount of lighting operation hours is 3,900 hours a year, of which 410 hours is charged at the daytime tariff. The municipal outdoor lighting system is characterized by significant electricity losses and the high cost of maintaining the lighting fixtures with outdated types of light sources.

The Catalog of Investment Projects includes the following energy efficiency improvement measures in the outdoor lighting system: introduction in the city of an automated control system for outdoor lighting; capital renovation of outdoor lighting through installation of the lighting fixtures on the basis of LED technologies, including lighting fixtures with autonomous power supply.

Implementing all measures in the outdoor lighting sector would reduce CO₂ emissions by 1,689 t/year or 0.13% of the baseline. The total annual reduction of energy resources consumption would amount to 1,456 MWh of electricity a year.

 

PUBLIC BUILDINGS

Total funding envisaged for five proposed projects is UAH 2,159.7 mln., average payback period – 9 years.

The public buildings sector of the city includes 542 buildings with a total heated space of 1,254,900 m², including 386 buildings in the education sector ( 149 kindergartens, 147 secondary schools, 45 off-school educational establishments, 29 higher educational establishments and 15 technical and vocational schools), 109 medical sector buildings (24 institutions), 13 buildings in the cultural sector and 31 buildings of the social protection authorities.

The majority of the buildings were constructed in the Soviet era. They have huge heat losses through the building envelopes and require a significant amount of heat for heating the premises. The specific energy consumption for heating is 139-240 kWh/m² a year, which is significantly higher than modern European norms (15-45 kWh/m²) and normative values (45-70 kWh/m²) according to DBN B.2.6-31:2006 “Heat Insulation of Buildings” with amendment # 1. The city has no mass experience in implementing energy efficiency projects.

The Catalog of Investment Projects in this sector includes comprehensive thermal modernization of 131 school buildings, 153 kindergartens and 45 off-school educational establishments, 21 medical institutions, 22 cultural sector buildings (installation of individual heat substations with automated weather-based control systems, heat insulation of the building envelopes, balancing of the heating systems, heat insulation of the pipelines, window replacement and modernization of the entrance units).

Implementing the project proposals in the public buildings sector would reduce CO₂ emissions into the atmosphere by 50,387 t/year or 3.78% of the baseline. The total reduction of energy resources consumption would amount to 23,461 m³ of natural gas a year.

Kryvyi Rih plans to take part in the NEFCO credit program. The USAID Project has developed a business plan for the thermal modernization of two kindergartens in the city: # 15 and # 231. The project plan documentation will enable the municipality to receive almost UAH 10.4 million of investments for implementing energy efficiency measures. This includes UAH 5.6 million of credit funds from NEFCO and a UAH 3.7 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P). Implementing the thermal modernization of the two public buildings would reduce annual electricity consumption by 11,000 kWh, and heat energy by 953 MWh. The amount of greenhouse gas emissions will fall by 219 t a year. It is expected that annual savings will be over UAH 1.5 million.

 

RESIDENTIAL BUILDINGS

The total funding envisaged for the proposed two projects in this sector is UAH 1,305.1 mln., average payback period – 1 year.

Residential buildings have the largest consumption of fuel and energy resources of all consumers in the city. There are 5,018 multi-apartment buildings in Kryvyi Rih, with a total space of 11,370,000 m², and a total of 222,071apartments. Proper maintenance of this residential stock is provided by five municipal and two private housing management companies. Active work on condominium establishment is underway.

Investment projects in the residential buildings sector envisage: modernization of the heat inlets and heating systems with the application of energy saving technologies in 4,203 multi-apartment residential buildings, including installation ofindividual heat substations (IHSs) with the capacity for automated weather-based control, balancing of the heating systems and heat insulation of the pipes, installation of thermostatic control valves on the heating radiators, equipment of the automated units for hot water supply, window replacement with energy efficient PVC windows.

Implementing the projects would reduce CO₂ emissions in the residential (building) sector at the heat consumption stage by 153,012 t/year or 11.48% of the baseline. The total annual reduction of energy resources consumption would amount to 79,996,000 m³ of natural gas.

 

TERTIARY SECTOR PUBLIC BUILDINGS

The total funding envisaged for the proposed project is UAH 21.9 mln., average payback period – 2.1 years.

Public buildings of the tertiary sector are the buildings not belonging to the residential housing stock, but which are on the City Council balance sheet are usually commercial buildings. Despite the significant interest of the users of these buildings in saving of energy resources, there are certain difficulties in developing feasibility studies for energy efficiency projects and obtaining permits for performing works.

The Catalog of Investment Projects in the tertiary buildings sector includes: installation of automated units for hot water supply; balancing the double-pipe and single-pipe heating systems; heat insulation of the heating system pipes, pipes and heat exchangers in the hot water supply system – financed exclusively by the owners and users of such buildings.

Implementing all measures in the tertiary buildings sector would reduce CO₂ emissions by 2,896 t/year or 0.22% of the baseline. The total annual reduction of energy resources consumption would amount to 1,387 m³ of natural gas.