The Communal Enterprise “Ternopilmiskteplokomunenergo” of the Ternopil City Council, a municipal district heating utility, has secured a loan from the European Bank for Reconstruction and Development and a grant from the Eastern Europe Energy Efficiency and Environment Partnership ("E5P") Fund for a project aimed at improving the energy efficiency, reducing energy losses, gas and electricity consumption and improving the quality of heat and hot water supply services in the City of Ternopil. The project, which has a total estimated cost of approximately EUR 17.5 million equivalent, will require the procurement of the following goods, works and services:

• Rehabilitation of a complete network loop supplied from a major boiler house with installation of IHSs in residential buildings (estimated 140 buildings), new pumps at the boiler house with variable speed control and replacement of secondary network sections;

• Replacement of network sections with pre-insulated modern technology pipes;

• Installation of an 8.0 MW wood chip boiler combined with a 2.0 MW flue gas condensation plant;

• Replacement of large distribution pumps;

• Rehabilitation and modernisation of a boiler house with new boilers, new control and measuring equipment, automation system and new pumps with variable speed control;

• Installation of a SCADA system (remote control and monitoring of the entire district heating system);

• Solar heating pilot project;

• Technical Cooperation.

The Contracts are to be financed with the proceeds of a loan from the Bank and E5P grant.