WASHINGTON, August 1, 2000 - The World Bank today approved a US$36.2 million Riga District Heating Rehabilitation Project for Latvia to increase the city's efficiency of heat supply, distribution and consumption.
The project will improve the reliability of service delivery, enhance energy conservation, and improve the environmental conditions of Riga's district heating systems. It will also promote sound pricing policies and commercial practices to allow for the competitive development and possible privatization of Rigas Siltums, the leading district heating provider in Riga.
This project will have significant economic and environmental benefits for consumers of district heating in Riga, primarily residential and public consumers, including a large number of low-income users and pensioners living in high-rise apartment buildings.
The project consists of the following two components:
- District Heating Rehabilitation Program. This component will supply and install automated consumer substations and associated piping to approximately 7,235 buildings. It will also replace and rehabilitate selected corroded pipe sections to minimize heat and water loss, construct a river-crossing pipeline that will interconnect the right and left banks of the Daugava river to allow heat supply exchange, and improve the Imanta heat-only boiler house.
- Institutional Support Program. This component will provide consultancy services for implementation support for Rigas Siltums, advisory services for the Riga Municipality to improve the effectiveness of its social assistance program, and consultancy services to evaluate ownership options of Rigas Siltums and to undertake a heat tariff study.
The total cost of the project is US$138.1 million. This is a fixed-spread loan with a maturity of 17 years, including a 5-year grace period.
Latvia joined the World Bank in 1992; since then, commitments to the country total approximately US$391.61 million for 18 operations.