Rehabilitation of District Heating Systems in Serbia – Phase IV

Rehabilitation of District Heating Systems in Serbia – Phase IV

Project Description

District heating systems (DHSs) are very significant in Serbia as a means of heating multiple domestic and commercial properties. Rehabilitating, replacing, or setting up efficient DHSs and keeping them well-maintained has been very important, given that 20% of Serbian households are connected to one of the 50 systems across the country. Modernisation and rehabilitation of DHS were desperately needed since the long-term underinvestment has left many of the production and distribution facilities in poor technical conditions which in turn led to inefficient heat production as well as high losses of valuable resources - water and energy.

After the successful implementation of the first three phases of the Programme "Rehabilitation of District Heating Systems in Serbia", Phase IV has continued with the modernisation and reform of additional 18 district heating companies (DHCs) in Serbia. The objective was to improve the technical and financial efficiency of DHCs in Serbia through the replacement of obsolete pipelines, substations, and production facilities, as well as their modernisation and automation. The Programme also aimed at introducing institutional and organisational reforms at the DHCs' level and enhancing their business policies and sustainability.

WBIF has supported these efforts by providing technical assistance for the development of Heat Demand Forecast, Hydraulic Calculations and Business Strategy; assistance to the Ministry of Mining and Energy in Programme coordination and monitoring, such as support to DHCs in the preparation and submission of investment proposals, evaluation of project proposals, procurement, and progress monitoring; support to DHCs in the implementation of institutional reforms and introduction of new consumption-based tariff systems.

Partner Financial Organisations

Western Balkans Partners