Presentation on theme: "Development of Ventspils District Heating System in Latvia 2005/LV/16/C/PE/001."— Presentation transcript:
Development of Ventspils District Heating System in Latvia 2005/LV/16/C/PE/001
11 April 20082 Background Information 08/2005 Submission of the project application to the European Commission 08/2006Decision of the European Commission on approval of support from the Cohesion Fund 02/2007 Signed participant agreement by and between the municipal company SIA "Ventspils TERMO" and Stadtwerke Flensburg GmbH (SWF)
11 April 20083 Project Costs (as planned in 2005) Total costs EUR 81,268,462.00 Total eligible expenditureEUR 47,952,345.00 Share of support as %72% Support from the CFEUR 34,605,360.00 Two project components are implemented within the project framework with the following support ratio: Component A - 64 % and Component B - 74 %. Project-related costs are eligible until 30/11/2010.
11 April 20084 Construction of a CHP Station Main purpose – reduction of SO 2 emissions – reached partially in the end of 2009 (by closing down the heating plant on Brīvības Street), completely - in 2011. Specific objectives: –Closing down the heating plant located in a residential area (Brīvības Street), replacing it with a new back-up heating plant, reduction of SO 2 emissions – reached partially in 2009; –Combined heat and power generation – reached completely in ~2011.
11 April 20085 Project Funding Budget of the project will be adjusted to market situation during negotiated procedure with credit institutions The market development trends for energy equipment as well as energy tariff dynamics have been take into consideration in the elaborated procurement documentation for the loan tender. The corresponding cash flows have been calculated up to 2031 Opening of bids for the loan tender is planned to take place on 10/04/2008, followed by a negotiated procedure with the chosen credit institutions that will end simultaneously with tenders for works (June - July 2008).
11 April 20086 Updated Project Implementation Timeframe (indicative) (I) 02/10/2006 Elaboration of documentation for procurement contract 12/2007 – 01/2008 Procurement Commissions start their work 14/02/2008Launch of loan procurement for project funding 19/02/2008 Launch of procurement tender for construction of a CHP plant 02/04/2008Closing tender for experts for evaluation of bids for the construction of a CHP plant with no results (MoF) 04/2008Planned launch of tenders for construction of a connecting pipeline and for engineering services 10/04/2008Deadline for submission of tender bids for the loan tender 30/05/2008 Deadline for submission of tender bids for the construction of a CHP plant
11 April 20087 Updated Project Implementation Timeframe (indicative) (II) 06/2008 Planned evaluation of bids 06 - 07/2008 Planned signing of agreements Q3 2009 Planned to complete construction of the connecting pipeline (upon EC decision – 30/04/2009) Q4 2009 Planned to complete construction of a back- up heating plant Q3 2011 Planned to complete construction of the CHP plant (upon successful award of procurement contracts deadline for completion of works will be updated; one of the evaluation criteria – deadline for completion of contract) (upon EC decision – 30/11/2009)
11 April 20088 Timeframe Project application (01/08/2005) Signed EC decision (25/08/2006) Agreement with Enprima/Lakalme (02/10/2006) Participant agreement in PPP (27/02/2007) Published by PMB – CHP station (19/02/2008) Published by PMB – connecting pipeline, engineer (04/2008) Signing of agreements (07/2008) – implementation 38 months End of period ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12
11 April 20089 Project Implementation Risks Capacity shortage in the energy market for equipment (producers/suppliers), market overheating continues Delays in timeframe (related with equipment supplier's delivery capacities) It is planned to complete the construction of the CHP plant in September 2011 which significantly exceeds the deadline for physical implementation stated in EC decision (30/11/2009), as well as the overall deadline for completion of physical implementation of the 2000 - 2006 period projects (December 2009). Increase in costs/growing prices for the project (taking into account when organising the loan tender)