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Center-invest and the European Bank for Reconstruction and Development are to upgrade the heating infrastructure in Taganrog.

On 24 October the European Bank for Reconstruction and Development (EBRD) signed an agreement granting the district heating company Teploenergo (Taganrog) a ten-year RUR221m loan to upgrade the city's heating infrastructure.

As part of the project, Teploenergo plans to reconstruct and replace boilers, acquire combined heat and power units, and install individual heating systems. This will allow the company to reduce its current fuel consumption by 4% and save 1.1GWh of electricity per every 10.4GWh. An annual CO2 reduction of 6,800 tonnes is anticipated.

“The EBRD is willing to provide long-term finance, in addition to its 2007 shareholder investment, for this excellent example of a project,” said Jean-Patrick Marquet, Director of the EBRD's Municipal and Environmental Infrastructure Team. “What is particularly special about this project is that, as well as making the company more economically efficient, it will have an almost immediate impact in terms of conserving energy resources and improving the environmental situation.”

In the last four years, Teploenergo has constructed and commissioned four new boiler rooms and dismantled 16 old, unprofitable ones. It plans to have started up another three boiler rooms by the end of 2008. In parallel, the company is reconstructing and replacing heat distribution networks. This has allowed it to reduce threefold the per unit cost of producing heat, to automate the control system, and to improve the quality of its services. Teploenergo supplies 57% of Taganrog's heat and 75% of its hot water.

This long-term loan will enable the company to implement its new strategy. The signing of the loan agreement is further proof that, despite the global economic crisis, Center-invest Bank's customers are continuing to successfully develop their businesses.

The EBRD bought an equity stake in Teploenergo in December 2007. This was the first time that the EBRD had become a shareholder in a Russian heating company.

Teploenergo was one of the first private municipal heating companies in Russia. The EBRD has a 25% stake in the company, and Center-invest Bank a 47% stake.

Center-invest was the first bank in Russia to participate in the EBRD's 'Sustainable Energy Initiative in Russia'. Center-invest's energy efficiency loan portfolio has reached RUR1bn. 

In 2007 Teploenergo was a runner-up in the prestigious, international, sustainable development competition, the FT Environmental Awards, launched by The Financial Times and Citi Private Bank. As the competition organisers pointed out, Teploenergo was the only Russian company to enter the competition.

Together, Teploenergo and Center-invest Bank have shown the Russian business community that sustainable, energy efficient and environmentally friendly development can benefit not only society, but also a company's bottom line.

Telpoenergo's products and services:

  • hot water and heating
  • maintenance of equipment and heat distribution networks
  • designing and constructing boiler rooms and heat distribution networks (100% subsidiary company Teplostroi)
  • managing housing stock (100% subsidiary company Zodchii)
  • installed capacity – 309.3 Gcal/hour; connected load – 225.9 Gcal/hour.