RLF - Lutsk District Heating - Phase II (EBRD-54875)

Countries
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
Specific Location
City of Lutsk
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
May 14, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
DISTRICT HEATING COMPANY LUTSKTEPLO OF THE CITY OF LUTSK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 11.35 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 10.5
Converted using 2024-05-14 exchange rate.
Project Cost (USD)
$ 16.98 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 15.7
Converted using 2024-05-14 exchange rate.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Jun 1, 2024

Disclosed by Bank May 10, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a senior loan of up to EUR10.5 million to State Communal Enterprise "Lutskteplo" (the "Company") to finance the modernization of the district heating ("DH") system in the City of Lutsk. The EBRD loan is a part of a broader financial package, which includes a EUR4.2 million investment grant from the EU Neighbourhood Investment Platform ("EU NIP") and a EUR1.0 million co-financing from the City. The Project builds upon the achievements of and lessons from the previous DH project in the City of Lutsk, which was financed by the EBRD, Clean Technology Fund and Eastern Europe Energy Efficiency and Environment Partnership.

The EBRD loan and the investment grant from the EU NIP will be used to finance i) the replacement and interconnection of DH networks along with optimization of their diameters; (ii) the installation of heat pumps and biomass-fired boiler(s); and iii) the installation of dispatching and monitoring system also known as SCADA. The total Green House Gas ("GHG") emission reduction from the Project implementation is calculated to be 10,191 tonnes of CO2e per annum.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorized B (2019 ESP) and Low-Medium risk. The Project will result in environmental and social benefits, associated with the enhanced resilience of the City's DH system, reduced natural gas consumption and heat carrier leakages, lower air emissions and improved overall quality, reliability and energy efficiency of the DH services. The Project will not involve any investments into fossil fuel generating capacities; and will focus on heat generation from renewable sources including sustainably produced biomass and heat pumps.

The implementation of the Project will be associated with temporary adverse environmental and social impacts during the construction period only, such as noise and emissions, health and safety, waste management, traffic safety, contractor management, which will be addressed by the good practice construction management plans and contractor supervision. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

EBRD Finance Summary: EUR 10,500,000.00

Total Project Cost: EUR 15,700,000.00

€10.5 million senior loan co-financed by up to €4.2 million investment grant from the EU NIP, and up to €1.0 million local contribution.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

DISTRICT HEATING COMPANY LUTSKTEPLO OF THE CITY OF LUTSK - The Company is a municipal district heating ("DH") service provider wholly owned by the City of Lutsk and the existing client of the Bank. 
The Company operates 43 boiler houses with the total installed capacity of 650 MWth.  The heat transmission and distribution system consists of (i) 131.6 km (in two pipe measurement) of transmission and distribution pipelines of different diameters; (ii) 47 central heating substations, and (iii) circa 350 individual heat substations.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Mr. Bohdan Karachevskyi
office@teplo-dkp.lutsk.ua
+380 33 2773200
https://www.teplo-dkp.lutsk.ua/
SCE "Lutskteplo" 20, Hulaka-Artemovsckoho Str. Lutsk, 43005 Ukraine

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works