MFSI-II Support for Zhytomyr
20 December 2012
MFSI-II Support Will Enable Reliable Heating for Zhytomyr Residents
In a letter dated 18 December 2012, the City of Zhytomyr thanked the Municipal Finance Strengthening Initiative Project (MFSI-II) Roll-out for its methodological and advisory support provided in the preparation of the Development of the Zhytomyr City Heating System project.
MFSI-II assistance was instrumental in Zhytomyr becoming the first city to successfully navigate the Ukrainian government’s new procedure for approving local guarantees. Under the new rules, both the Ministry of Finance and Cabinet of Ministers must approve the loan.
According to the City’s letter, the Ministry of Finance has approved the Zhytomyr City Council’s guarantee of a loan from the European Bank for Reconstruction and Development for ZhytomyrTeploKomunEnergo Municipal Enterprise to realize the Development of the Zhytomyr City Heating System project.
This project is designed to improve ZhytomyrTeploKomunEnergo’s operational reliability, reduce its energy intensity, and improve the quality of heat and hot water supply to city residents. Implementing the project will enable the City to:
- reduce consumption of natural gas by 8 million cu m per year;
- reduce the cost of electric power by UAH 12.0mn per year;
- reduce operating costs (repairs and maintenance) by UAH 3.0mn per year.
Project implementation will save a total of UAH 31.9mn per year and the city residents will enjoy stable and reliable heating services.
MFSI-II assistance was instrumental in Zhytomyr becoming the first city to successfully navigate the Ukrainian government’s new procedure for approving local guarantees. Under the new rules, both the Ministry of Finance and Cabinet of Ministers must approve the loan.
According to the City’s letter, the Ministry of Finance has approved the Zhytomyr City Council’s guarantee of a loan from the European Bank for Reconstruction and Development for ZhytomyrTeploKomunEnergo Municipal Enterprise to realize the Development of the Zhytomyr City Heating System project.
This project is designed to improve ZhytomyrTeploKomunEnergo’s operational reliability, reduce its energy intensity, and improve the quality of heat and hot water supply to city residents. Implementing the project will enable the City to:
- reduce consumption of natural gas by 8 million cu m per year;
- reduce the cost of electric power by UAH 12.0mn per year;
- reduce operating costs (repairs and maintenance) by UAH 3.0mn per year.
Project implementation will save a total of UAH 31.9mn per year and the city residents will enjoy stable and reliable heating services.
Glyanec