HSIP

Heat Supply Improvement Project (HSIP)

Demonstrating the benefits of energy efficiency improvements in public buildings is aimed to improvement of access to reliable and efficient services in heating and introduction of energy efficient technologies to reduce energy consumption by state and municipal institutions, education and health sectors.

Project objective is to improve efficiency and quality of heat supply in selected project areas in the Kyrgyz Republic.

Main objective of Project is to improve energy efficiency and seismic stability in selected public buildings, mainly, in health and education (for example, in schools, kindergartens, hospitals and clinics).

Implementation: Community Development and Investment Agency of the Kyrgyz Republic (АRIS) 

Project consist of the following components and subcomponents:

Component 2.1: Investments in energy efficiency improvements of public buildings. Within the framework of component, the investments will be financed to ensure energy efficiency and seismic stability of separate public buildings, mainly, in education and health (for example, in schools, kindergartens, hospitals and clinics), as well as associated activities on capacity development. Two main activities will be implemented within the framework of subcomponent:

Activity 1: Investments in energy efficiency improvements of selected buildings: Activity will finance measures on investments to improve energy efficiency and seismic stability of selected public buildings as well as related consulting services.

Activity 2: Capacity building in energy efficiency: It is aimed to strengthen local capacity in order to improve favorable conditions to increase energy efficiency, to improve market capabilities and awareness increasing on energy efficiency. Specific areas of support will be following: training of local companies; information campaign on energy efficiency; piloting benefits and/or co-financing distribution pattern; support of energy efficiency roadmap implementation.

Component 2.2: Project implementation support. Within the framework of component, the efficient implementation and Project component management will be supported, including assistance provided for: (i) ARIS PIU staff and assist to cover expenditures to provide administrative support by ARIS staff (so called ARIS administrative pool); (ii) project related costs and trainings; and (iii) annual audits of Project accounts.

Criteria for public buildings to participate in Project: 

• State or municipal owned health, educational and social security public buildings, (kindergartens, schools, hospitals, clinics, orphanages etc.);
• Structural strength of building and lack of plans on closure, reduction of area or building privatization;
• Use of heating system based on electricity.

Works envisaged under the energy efficiency improvements in public buildings: 

1. Walls heat insulation;
2. Replacement of windows;
3. Replacement of outside doors;
4. Insulation of attic floor/roof;
5. Retrofitting, floor insulation;
6. Indoor ventilation system;
7. Reinforcing seismic strength of building (reinforcing of building, reinforcing foundation);
8. Upgrading heating system + heat pump: - or district: ventilation/heating/air conditioning, heat exchanger and heat pump;
9. Hot water supply (HWS) – by heat pumps, solar collectors;
10. Indoor LED lighting.

Deliverables: 

• Improved comfort level, higher stability and better functionality of public buildings, selected under the Component 3 (for example, schools, hospitals, kindergartens, polyclinics etc.) will benefit, first of all, patients, students (schoolchildren)/kids, medical staff and teachers, who working and spending most of their business day in these premises.
• State/municipal authorities will benefit from reduction of current expenditures for power and improvement of public services rendering.
• In addition, indirect beneficiaries will benefit from Project implementation, for example, in reduction of power costs, the released funds the municipal authorities can direct to solve other local issues.
• In a number of selected cities/local self-governments, in which the buildings will be retrofitted under the HSIP Project, conducting broader energy efficiency assessment in various municipal sectors, such as water supply, street lighting, district heat supply and public buildings.
• Local companies (for example, local energy auditors, design institutes, construction and supervision companies) will benefit from increase of demand for their services to ensure energy efficiency and construction, along with expansion of capacity and deepening of experience in identification, preparation and making investments into energy efficiency and seismic safety.

Within the framework of National Development Strategy of the Kyrgyz Republic for 2018-2040, approved by the Decree of the President of the Kyrgyz Republic dated 31.10.2018 DP # 221 as well as Program of the Government of the Kyrgyz Republic for 2018-2022 “Unity. Trust. Creation”, approved by the Resolution of Jogorku Kenesh of the Kyrgyz Republic dated April 20, 2018 # 2377-VI, among the key priorities in heating sector includes the reduction by the Government of KR of dependency from electricity for heating purposes in winter months and to improve access to reliable and efficient services in heating and introduction of energy efficient technologies to reduce energy consumption by state and municipal institutions, buildings.

National Development Strategy of the Kyrgyz Republic for 2018-2040 establishes priority of implementation of large-scale programs on energy effective retrofitting of old housing and non-housing stock, prohibition for new construction without application of energy and resource saving highly efficient technologies. Bringing the share of environmentally friendly energy sources (small HPP, solar and wind power stations, solar collectors, heat pumps, use of biogas etc.) at least 50 % in total power balance of the country.

The majority of public budgetary buildings were constructed 25-60 years ago. Old buildings do not have modern energy efficiency measures, that lead to high energy and heat losses, resulting to inefficient use of fuel resources and, as a result, to increased burden for budget of these institutions, load for distribution networks, as well as deterioration of environmental situation as a result of increasing use of solid fuel due to lack of power.

Improving efficiency of energy consumption in public health and educational buildings will allow to reduce consumption of power and related peak loads, along with decreasing of current expenditures for public energy. Investments into increasing energy efficiency will also create economic benefits, which were not quantitatively identified in this analysis, including improvement of services quality provided by these facilities, for example, improving child care and better functionality of buildings, as well as improved measures of seismic safety.

Upon receiving required no objection by the Government of the Kyrgyz Republic and World Bank, on September 12-18, 2017 the negotiations under the Heat Supply Improvement Project were held.

On January 26, 2018 the Financing Agreement was signed between IDA and Government of KR represented by the Ministry of Finance of the Kyrgyz Republic.

Draft Resolution of the Government of KR and draft law On ratification of Financing Agreement agreed with interested ministries and agencies. Draft law On ratification of Financing Agreement for Heat Supply Improvement Project was approved in three readings by Jogorku Kenesh of KR.

On February 5, 2019 Law on ratification of Project was signed by the President of the Kyrgyz Republic. On April 25, 2019 the Heat Supply Improvement Project has officially become effective.

Accordingly, the project implementation on coverage of oblasts was divided into three Rounds: 

• Round 1^st: Таlas and Chui oblasts, as well as Bishkek;
• Round 2^nd: Naryn, Jalal-Аbad and Issyk-Kul oblasts;
• Round 3^rd: Оsh and Batken oblasts as well as Osh city.

Selected public buildings in Chui, Таlas oblasts and Bishkek under the Project Round 1: