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Odesa District Heating Project Feasibility Study:  Odesa Municipal District Heating Company “Teplopostachanya Mista Odesa”

Sponsored by the European Bank for Reconstruction and Development (EBRD), the overall objective of this project was to prepare the Feasibility Study for a district heating project in Odesa, Ukraine, including due diligence of the Odesa Municipal District Heating Company (Company).  The study was to provide a bankable document to improve district heating services in the City appropriate for EBRD loan appraisal for the project. Other key objectives were to:

  • Develop an affordable, least-cost, long-term (15-20 years) strategic investment program for Odesa’s entire district heating infrastructure with best applicable technology;

  • Identify and assess a detailed priority investment program for the Company, including its technical feasibility and justification of its priorities in terms of internal rate of return;

  • Undertake a financial analysis of the company and preparation of financial projections;

  • Propose a new tariff system based on actual consumption as a target, with interim solutions;

  • Prepare an affordability analysis of consumer groups and existing social support mechanism;

  • Outline a Service Agreement between the City and the Company covering service standards, responsibilities of the City and the Company, rights and obligations of the Customers, etc.;

  • Determine an efficient implementation strategy for the Project, including investments in building networks and considering Ukraine and the EBRD’s procurement requirements;

  • Prepare an environmental analysis and audit, and an Environmental Management Plan.

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Advanced Engineering Associates International, Inc. (AEAI)
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