The political and economic situation in the eastern Donbas during the last three turbulent years has given some kind of a boost to the city of Kramatorsk for implementing energy efficient activities, investing in energy efficiency, and improving the quality of life of the local community.

The development of Kramatorsk investment potential has been supported by a number of important factors, such as granting the oblast capital status to the city and deployment of international programs of assistance in rebuilding the infrastructure of the areas affected by military actions. Approval by the City Council of the city’s Sustainable Energy Action Plan (SEAP) in 2015 has also expanded the opportunities of attracting the loan capital and grant funds from international financial institutions for the already developed investment projects in the key areas of municipal economy.

The proactive efforts of the municipal government are directed towards modernization of city’s housing and utilities infrastructure through implementation of projects designed to increase the energy efficiency of public and residential buildings, improve the quality of communal services provided to the residents. Presented below is a brief review of the international technical assistance investment projects, in which the frontline city Kramatorsk is taking part.

USAID MUNICIPAL HEATING REFORM PROJECT IN UKRAINE

Financing: United States Agency for international Development (USAID)
Beneficiary: Kramatorsk City Council
Project status: Completed, implemented in 2009-2013
Project budget: $18.5 million for 35 partner cities

Project description: The project envisaged collaboration with Ukrainian cities with the aim of improving the quality of heating service and increasing the energy efficiency in public and residential buildings through implementation of energy efficient technologies and metering system. The project also supported the development of Municipal Energy Plans (MEPs), implementation of pilot projects, and also promoted and supported establishment of Homeowners Associations (HOAs).



Achieved results:

1. Kramatorsk MEP developed and approved as a component of city’s strategic plan in the areas of energy efficiency and energy saving.

2. Audit conducted of heat sources (boiler houses, CHP), heat networks (main and distribution ones), and end users (all heated buildings).
3. Technical and economic estimates prepared for the proposed investment projects and their funding arrangements developed.

4. City’s Energy Manager position introduced and essential office equipment provided.

5. Automatic regulation systems and commercial heat metering units installed in five residential buildings of the city.

6. An HOA Consulting Center opened, and six training seminars delivered for its staff.

7. Energy audits conducted of city’s 15 buildings: ten standard residential buildings and five public buildings (four schools and therapy block of Hospital #3).

8. A business plan prepared for attracting loan capital from the Nordic Environment Finance Corporation (NEFCO) for implementing the Improved Energy Efficiency of Educational Institutions Project, which provided partial thermal modernization of two schools and two kindergartens in 2013.

9. A transmission substation built on co-financing terms with USAID Municipal Heating Reform (MHR) Project in Ukraine (UAH 2mn) and TOV KramatorskTeploEnergo (UAH 3.2mn).

10. Annual consumption of coal reduced by 1,100 metric tons, and that of electricity by 2,300,000kWh.

11. A competition conducted for the best energy efficient project for a residential building. Based on trilateral financing (MHR Project, city budget, and co-owners) partial thermal modernization measures have been implemented at the HOA located at 95, Parkova St.

12. An active energy efficiency and energy saving information campaign implemented and public opinion survey conducted of Kramatorsk residents regarding their paying ability and quality of provided housing and communal services.

13. The Energy Efficient Schools educational program conducted in three general educational institutions of the city (schools #4, #16, and #35).

NEFCO PROJECT: IMPROVED ENERGY EFFICIENCY OF EDUCATIONAL INSTITUTIONS

Financing: Nordic Environment Finance Corporation (NEFCO)
Beneficiary: Kramatorsk City Council
Project status: Implemented in 2013-2014
Project budget: €288,000 of loan funds (NEFCO)

Project description: Implementing a range of thermal modernization measures in four educational institutions (five buildings): General educational schools #4 and #6, and kindergartens #67 and #71.



Achieved results:

1. Five Individual Heating Plants (IHPs) installed.

2. Reconstruction of heating systems, renovation of pipeline insulation, installation of heater back irradiation screens.

3. Complete replacement of building windows with energy efficient units.

4. 620 Gcal of heat energy saved during 4.5 years (project payback period).

5. Optimal temperature regime achieved and maintained in the buildings, heat comfort improved.

USAID MUNICIPAL ENERGY REFORM PROJECT IN UKRAINE

Financing: United States Agency for International Development (USAID)
Beneficiary: Kramatorsk City Council
Project Status: Ongoing since 2014, completion date 31 March 2018
Project budget: $16.5 million for 35 partner cities

Project description: The project goal is strengthening the energy security of Ukraine. One of the main tasks is assisting the partner cities to attract investments for implementation of energy efficient measures, preparation of applications for funding to international financial institutions, development of business plans, feasibility studies, and technical documents for attracting investments for energy efficiency, preparation of technical specifications and tenders according to the requirements of international financial institutions. The project is working to improve the legislative acts and norms for amending the building standards, energy efficiency in buildings, implementing the ESCO mechanism, commercial metering, housing and communal services, and improving the system of social protection. Work is conducted to promote the establishment of homeowners associations. A wide-ranging outreach campaign on the above mentioned issues is conducted.



Achieved and anticipated results:

1. Development of city’s Sustainable Energy Action Plan for 2015-2030 approved by City Council on 22 April 2015.

2. Creating a Register of Investment Projects containing a description of the most economically feasible investment projects of city’s utilities to contribute to achieving the SEAP objectives.

3. Implementing the city’s energy management system to cover all the enterprises of city’s municipal infrastructure in compliance with the requirements of the Energy Management System ISO:50001 international standard.

4. Improving the performance of HOA Clean Energy Resource Center.

5. Implementing a wide-ranging information campaign (training of Executive Committee department heads and heads of government-funded institutions, development of online information and monitoring portal to highlight the status of public procurements, conducting a PR campaign for mass media and city residents to educate energy efficient behaviors, placement of public service announcements, conducting Sustainable Energy Days and other educational events).

NEFCO PROJECT: IMPROVED ENERGY EFFICIENCY OF HEALTHCARE INSTITUTIONS

Financing: Nordic Environment Finance Corporation (NEFCO)
Beneficiary: Kramatorsk City Council
Project status: Ongoing since 2015
Project budget: €288,000 of loan funds (NEFCO)

Project description: The project envisages performing a range of thermal modernization activities in three medical treatment and preventive institutions: City Hospital #1, Children’s Territorial Medical Amalgamation (CTMA), and Primary Healthcare Center (Policlinic Department).



Anticipated results:

1. Installing heat pumps, so as to ensure uninterrupted hot water supply.

2. Improving healthcare services provided to the population by procuring and equipping a mobile outpatient unit with necessary equipment purchased with project funds.

3. Recovery and reconstruction of external and internal lighting systems using energy-efficient lamps. There were 51 Ukrainian-made external lighting fixtures with OSRAM lamps installed on the campus of Hospital #1. For internal lighting, the hospital was supplied with 1,700 LED and 224 luminescent lamps.

4. Replacement of windows and entrance doors with energy efficient units.

PROJECT OF EU DELEGATION TO UKRAINE: PROVIDING THE HOUSING FACILITIES FOR THE MOST VULNERABLE DISPLACED PERSONS AND KRAMATORSK RESIDENTS AFFECTED BY THE CONFLICT IN UKRAINE IN 2015-2017

Financing: EU Delegation to Ukraine
Beneficiary: Kramatorsk City Council
Project status: Ongoing since 2015
Project budget: €2.024 million (€1.819 million grant from EU Delegation and €205,000 co-financing by the city)

Project description: The project envisages rebuilding of the city’s infrastructure destroyed by military actions, modernization of the available infrastructure, integration and adaptation of internally displaced persons in the local community, and prevention of conflicts in the community.



Anticipated results:

1. Implementation of major repairs of three hostels with the total area of 5,534m2:
- installation of new metal-plastic windows;
- replacement of entrance doors;
- repair and thermal insulation of external walls, roofing, and attic floor;
- construction of solid fuel-fired boiler room, installation of IHP, reconstruction of heating system;
- major repairs of the water supply and sewerage, power supply, and gas supply systems;
- equipping the rooms with basic furniture.

2. Reconstruction of wastewater treatment plant:
- installation of electrolysis plants for the production of sodium hypochlorite used for wastewater purification;
- reconstruction of sewer pumping station #3 (replacement of pumps, control panels, renovation of machine room).

3. Registration and employment support:
- implementation of the One-Stop-Shop concept (provision of all the required administrative services in one building) to simplify registration of displaced persons;
- simplifying the job placement process, evaluating the labor market, collaborating with employment centers and employers, conducting training seminars, and introducing the training programs for internally displaced persons.

UNDP ECONOMIC AND SOCIAL RECOVERY OF DONBAS REGION PROJECT

Financing: United Nations Development Program (UNDP), Government of Japan
Beneficiary: KVP Kramatorskyi Vodokanal water utility
Project status: Implemented in 2015-2016
Project budget: UAH 3,415,000 of grant funds

Project description: The project envisaged reconstruction of the 2nd elevation pumping plant rated for 13,600m3/day with partial replacement of pipelines and modernization of the pumping plant building.



Achieved results:

1. A new technology of potable water electrolysis disinfection using sodium hypochlorite implemented to avoid emergency situations when using liquid chlorine and reduce environmental footprint.
2. 70 meters of plastic piping of a new 100mm diameter water line laid down, pumping unit rated for 180m3/h and stop valves replaced, and an additional pump installed.
3. Water consumption control system installed, transformer replaced.
4. Pumping station building renovated (thermal insulation of walls, replacement of windows, roofing repair).
5. A round-the-clock supply of quality drinking water provided to the city’s population and enterprises according to modern sanitary requirements.

NEFCO PROJECT: MAJOR RENOVATION OF THE KRAMATORSK UKRAINIAN GYMNASIUM

Financing: Nordic Environment Finance Corporation (NEFCO)
Beneficiary: Kramatorsk City Council
Project status: implemented in 2015-2016
Project budget: €384,000 of grant funds (NEFCO)

Project description: The project envisaged attracting loans for thermal modernization of the Kramatorsk Ukrainian Gymnasium building. The educational institution is the region’s model school, therefore, further activities of thermals (interior work, equipping classrooms, area improvements) will be implemented with the city and state budget funds totaling about UAH 25mln.

Achieved results:

1. The building roofing thermally insulated and repaired, building pedestal and front thermally insulated, windows replaced with energy efficient units.

2. Heat energy consumption reduced by 862MWh/year.

3. The temperature regime in the school building complies with the sanitary and hygienic standards.

4. Opportunities provided for further thermal modernization against the funds of the city and state budgets.

EUROPEAN COMMISSION PROJECT: MODERNIZATION OF ELECTRIC TRANSPORT TRACTION SUBSTATION

Financing: European Commission
Beneficiary: KP Kramatorsk Tram and Trolleybus Authority Municipal Enterprise
Project status: Ongoing since 2016
Project budget: €1.232 million (€986,000 of European Commission grant, and €246,000 in co-financing by municipal budget)

Project description: The project envisages attracting grant funds for replacement and upgrade of equipment of the traction substation serving the municipal electric transport system (trams and trolleybuses).

Anticipated results:

1. Power equipment (large converters, oil circuit-breakers, transformers) of the traction substation upgraded.

2. Automated equipment control systems installed.

3. 700,000kWh of electricity saved per year, power consumption for in-house use of the traction substation reduced.

4. Power reserves of 600kW freed, which will allow launching an additional trolleybus route in central Kramatorsk.

5. Passenger service quality improved, likelihood of accidents reduced.

6. A communication plan for disseminating the project implementation experience to other Ukrainian cities developed and introduced.

IBRD PROJECT: DEVELOPMENT OF MUNICIPAL INFRASTRUCTURE 2

Financing: International Bank for Reconstruction and Development (World Bank - IBRD, Clean Technology Fund (CTF)
Beneficiary: Kramatorskyi Vodokanal Municipal Production Enterprise
Project status: Implemented in the city since 2016 (launched in Ukraine in 2014)
Project budget: $5.236 million loan

Project description: The project has been implemented in 11 Ukrainian cities with the total budget of $350 million. It is the infrastructure project of the Government of Ukraine intended for financing the modernization of water supply, sewerage, and waste management equipment in the pilot cities. Based on the results of review of applications from cities, the World Bank representatives will provide loans under state and local guarantees.

Anticipated results:

1. Reconstruction and major repairs of water supply networks:
- modernization of two pumping stations, reconstruction of booster station;
- major repairs of 500mm water supply networks on Yuvileina St.

2. Reconstruction of wastewater treatment plant:
- modernization of sewage pumping station #3;
- introduction of alternative heating sources at wastewater treatment plant;
- reconstruction of aeration tanks, installation of compressors with frequency control, replacement of pumping equipment.

3. Optimization of city’s water supply and sewerage schemes:
- equipment procurement (correlator, flowmeter, pipeline finder, telemetry devices);
- installation of regulators and pressure sensors, automation of information gathering and analysis;
- reconstruction of water and sewerage networks (Socmisto neighborhood, Lazurnyi housing project, and settlements).

4. Procurement of vehicles:
- ditcher with attachments;
- sewer flusher;
- special purpose vans for emergency repair crews.

5. Economy of resources (average estimates by the year 2020):
- electricity by 983.7MWh/year;
- purchase water by 1,098,900m3/year.

6. Reduced fault rate, improved quality of drinking water and higher degree of wastewater purification, assuring 24/7 water supply.

Thus, Kramatorsk demonstrates by its positive example that given the determination and political will of leadership, active engagement of the local community, and international assistance, it is possible to significantly improve the municipal infrastructure within a relatively short period of time, save energy resources, and help create comfortable living conditions even in a city touched by war.