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Investments in the district heating system of Budapest for the period 2018-2020 to improve network performance, optimize the heat generation mix and reduce emissions of greenhouse gases and other air pollutants.
The main purpose of the project is to satisfy current and future demand for district heating services in the area by modernizing, extending and interconnecting the network as well as increasing the installed capacity of the heat generation facilities. The Programme will improve the Promoter's ability to optimize the heat generation mix and will increase district heating network performance. The main benefit of such investments would be the improvement of the reliability and operational flexibility of the district heating system and the reduction of the absolute amount of local air pollutants (NOx, SO2). This will be achieved by replacing individual smaller, fossil fuel fired heating boilers in residential and public buildings.
By virtue of their technical characteristics, most of the Programme components will not be subject to an EIA. Some Programme components, however, could fall under category, which requires the competent national authority to determine the need for an EIA. Environmental impacts of the project schemes are expected to be minimal usually come from construction works, are temporary and expected to be mitigated in line with national legislation.
The Promoter has to follow public procurement rules in compliance with the utilities sector procurement Directive. The Bank will confirm during the appraisal that the procurement process is in compliance with EU procurement rules.