Client: Unites States Agency for International Development (USAID)

Dates: 1999 - 2001

Country of assignment: Romania

Description of actual services provided

Encon staff reviewed over 50 expressions of interest submitted by district heating companies and municipalities for USAID assistance for the development of commercially viable district heating rehabilitation projects.   Encon staff visited 17 Romanian cities and met with municipal government officials and district heating companies (DHC) management to identify energy efficiency opportunities at district heating facilities and to collect technical, financial, and institutional information for the assessment of real opportunities for affordable and financially viable projects.

The potential project pipeline in Romania included projects worth over $17 million USD.  A project assessment and selection procedure was developed to rank the projects and to identify the top three for completion of a pre-feasibility study.  Encon staff designed the projects and completed risk and financial assessments, and met with a number of private financial institutions to discuss possible financial schemes for implementing the projects – some of which expressed an interest to proceed with the project financing.  The three projects were: 

• Medgidia: USD 1 million with a 2-year payback - rehabilitation of 4 of 18 district heating networks in the city – both boiler houses and distribution facilities, switching from oil to natural gas, and installation of heat exchangers for DHW preparation in buildings
• Piatra Neamt: USD 3 million with a 4.6 year payback - modernization of 13 boiler houses and installation of individual heating substations in buildings
• Slobozia: USD 1 million with a 3.8 year payback - decommissioning of 3 central heating substations at a main network from a chemical plant to the city, construction of a boiler house to substitute for the heat, and installation of individual heat substations