Implementation of an investment project in the Vitebsk region

By Decree of the President of the Republic of Belarus "On Approval of International Treaties and their Implementation" dated August 3, 2020, No. 296 (hereinafter referred to as Decree No. 296), published on the National Legal Internet Portal of the Republic of Belarus, international treaties on the implementation of the investment project "Expansion of Sustainable Energy Use" have been approved.

The trust of international financial organisations in the Republic of Belarus as a long-standing reliable and conscientious partner is confirmed by the provision of financial resources for the implementation of a new joint investment project in the field of improving energy efficiency in our country.

Decree No. 296 was developed with the aim of carrying out domestic procedures for the entry into force of financial agreements signed with the International Bank for Reconstruction and Development (IBRD) and the European Investment Bank (EIB) for the implementation of the investment project "Expansion of Sustainable Energy Use" (hereinafter referred to as the investment project).

To implement the investment project, scheduled for 2020-2025, borrowed funds in the amount of 180 million euros are being attracted from the IBRD and the EIB in equal shares. An additional 3.65 million dollars in grant funds have been allocated by the Global Environment Facility.

This investment project has been prepared to develop work on replacing the use of expensive imported natural gas with local wood fuel for heating and to implement Decree of the President of the Republic of Belarus No. 327 of September 4, 2019 "On Improving the Energy Efficiency of Apartment Buildings".

The Decree approves the signed financial agreements with the IBRD and the EIB, distributes the amounts of loan funds among regional executive committees depending on the number of implemented measures, identifies the executive and responsible organisations for the project implementation, the mechanism for repaying loan resources, and the provision of tax incentives during the implementation of the investment project.

In the Vitebsk region, as part of an investment project, the reconstruction of the "Agros" boiler house in Vitebsk, owned by the Vitebsk Communal Production Unitary Enterprise of Boiler Houses and Heating Networks "VPKiTS", is planned.

By the Resolution of the Vitebsk Regional Executive Committee dated August 13, 2020, No. 468 "On the Determination of the Customer", the Vitebsk Communal Production Unitary Enterprise of Boiler Houses and Heating Networks "VPKiTS" has been designated as responsible for the implementation of the measure "Reconstruction of the 'Agros' boiler house: conversion of the boiler house to fuel chip combustion" in Vitebsk, 3-ya Chepinskaya St., 40, within the framework of the investment project "Expansion of Sustainable Energy Use".

It is worth noting that "VPKiTS" is the first enterprise in the Republic of Belarus to submit a developed architectural project and a positive conclusion from the State Construction Expertise Department to the Department for Energy Efficiency. According to the project, the introduction of two additional boilers running on local fuel types with mechanized fuel loading, with a total capacity of 4 MW, is planned for the boiler house.

Thanks to the timely provision of all necessary documents for this facility to RUP "Belinvestenergosberezhenie" of the Department for Energy Efficiency, tender procedures for the selection of the general contractor for construction were announced on August 21, 2020.

The tender will be conducted through international competitive procurement using the Request for Bids (RFB) selection method.

The scope of work includes: design, manufacturing, testing, delivery, installation, completion, and commissioning of the facility. The work completion period is 11.5 months from the date of contract signing.

With the support of funds from international financial organizations, another project will be implemented in the Vitebsk region to convert boiler houses to fuel chips. This will contribute to reducing the consumption of imported fuel – natural gas – and lowering the cost of heat supply services provided by the state enterprise "VPKiTS".

Vitebsk Regional Inspectorate for Rational Use of Fuel and Energy Resources.