Mayor Nicușor Dan signed the financing contract for the rehabilitation of 22% of the district heating network in Bucharest with European funds – 1.6 billion lei – Local administration



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The Mayor General of the capital, Nicușor Dan, and the Minister of European Funds, Marcel Boloș, signed on Tuesday the financing contract for the rehabilitation of 210 km of the main district heating network. The value of the contract is 1.6 billion lei, of which 1.3 billion is non-refundable European funds. The works will begin next year, once the public procurement procedures for the selection of the constructor have been completed.

“Today we signed the financing contract for the rehabilitation of the district heating network. It is a contract for 210 km of the 954 km of the main network, that is, 23%. The problem to which this financing responds is evident. From 2016 to 2020 the number of faults in the district heating network increased from 420 to 1,300. The loss of thermal energy efficiency increased by 5%, the amount of water to be introduced into the network also significantly increased. Through this financing and the works that we will begin as soon as time permits and once the contracting procedures are completed, we will have three important improvements. First of all, improve the heating and hot water for the people of Bucharest. Second, the reduction of losses that will lead to a reduction in the subsidy paid by the municipality each year. Third, but not least, is the reduction in air pollution that this inefficiency generates. The contract has a value of 1.6 billion lei, of which 1.3 billion lei is non-refundable financing, ”said Nicușor Dan when signing the contract.

The counselor of European Funds, Marcel Boloș, has declared that in addition to the contract signed today, the City Council of the capital will also benefit from an additional financing of 200 million euros, through the National Recovery and Resilience Plan, for the modernization of district heating network.

Thus, through the two projects, 35% of Bucharest’s district heating network will be rehabilitated.

Prime Minister Ludovic Orban, present at the event, said that next week he will discuss the investment plan to modernize cogeneration plants, so as to increase the efficiency of the entire district heating system.

“Today, in the framework of cooperation between the City Council of the capital and the Romanian Government, a first event takes place, namely the signing of the financing contract with European funds for the rehabilitation of the primary district heating network. This is just the beginning of this collaboration. (…) Regarding the district heating system in Bucharest, why did I say that it is only a first step, because large investments are needed to increase the efficiency of the district heating system in Bucharest? Today, thermal energy production takes place in power plants with efficiencies of around 50%, if not less. And the losses in the main network and in the secondary networks are enormous. There are also losses in buildings. Our aim is to support the City Council of the capital in all other projects related to increasing efficiency, increasing efficiency in the operation of Bucharest’s heating and hot water supply system. Next week, we have already discussed it with the mayor general, we will have a meeting at the Ministry of Economy, where we will discuss investment plans related to ELCEN, so that, in a reasonable time, important investments are made, which increase performance. in the production of thermal and electrical energy, in a cogeneration system, using modern systems, which ensure yields comparable to those in production in other European countries ”, explained Orban.

The prime minister said he would seek additional sources of funding for the thermal rehabilitation of buildings.

We will also seek to identify additional financial resources to support the continuation of the district heating network rehabilitation project in Bucharest and I can also inform you that we have provided in the EU funded programs to increase energy efficiency. , important sums for what is known as thermal insulation of buildings, in order to reduce losses in buildings and increase the overall efficiency of the energy system ”, adds Ludovic Orban.

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