Odesa plans to take out a €25 million loan to modernise its heating networks: work is set to begin in 2027

Replacement of the heating network near the buildings on Kurortna Street. Photo: Mykolaiv City Council

Odesa plans to secure a €25 million loan from the European Bank for Reconstruction and Development to modernise its heating system. The funds will be used to upgrade networks, purchase equipment and improve the city’s resilience, although the main works will not begin until 2027, following an infrastructure audit.

This was discussed at a meeting of the Odesa City Council’s standing committee on planning, budget and finance, according to NikVesti.

In total, the project involves raising 35 million euros, of which 10 million euros will come from a grant from the European Commission, with a further 25 million euros coming from a loan from the European Bank for Reconstruction and Development.

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The loan is for a term of 13 years with a three-year grace period, and the preliminary interest rate is around 3.5 per cent per annum.

The project will be implemented in stages, said Andrii Rozov, director of the Department of Economic Development.

Initially, specialists will carry out a comprehensive audit of the city’s district heating system, costing around 40,000 euros. Experts will assess the condition of boiler houses and networks and identify the facilities that require modernisation as a matter of priority.

Once the audit is complete, the city council will separately approve a list of facilities where work is to be carried out.

The first stage involves:

• replacement of the main pipeline at a cost of around 165 million hryvnias;
• upgrading the underground heating networks;
• the procurement of storage units with a capacity of 4–6 MW;
• the installation of combined heat and power (CHP) units.

It should be noted that in Mykolaiv, with the help of partners, almost 40 per cent of the CHP plant’s heating networks have been replaced.