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FAQ – Application Phase

Till when applications can be submitted for DemoUkrainaDH Funding Programme?

Since September 2015 it is again possible to submit applications.

What is DemoUkrainaDH?

DemoUkrainaDH is a funding facility established by NEFCO and Sida in cooperation with the Ministry of Construction, Housing and Municipal Economy of Ukraine. NEFCO is an international financial institution established by the five Nordic countries. NEFCO finances investments and projects primarily in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects of interest to the Nordic region. Sida is the Swedish International Development Cooperation Agency. The objective of the DemoUkrainaDH facility is to support the development and funding of environmental sustainable and energy efficient demonstration projects in Ukraine’s district heating sector.

Who can apply for funding by DemoUkrainaDH?

Applicants for DemoUkrainaDH have to be publicly owned District Heating Entities operating in a Ukrainian city. Periods for application will be announced. For more information, contact the DemoUkrainaDH Coordination office.

How can a district heating entity apply for participation in DemoUkrainaDH?

District heating entities can apply by following the Application procedure. Please, consult the How to apply? section on this website for all the details about the Application procedure. For more information, contact the DemoUkrainaDH Coordination office.

What is the duration of DemoUkrainaDH?

By the end of 2013 the Funding Programme has been extended till 2016. Please, consult the Eligibility section and the How to Apply section of this website about the possibilities to apply

What happens with the Indications of Interest?

All Indications of Interest and supporting documents will be assessed by the DemoUkrainaDH Coordination team for presentation for approval and selection of the cities and district heating companies that have presented the most interesting Indications of Interest for further development. An Evaluation and Monitoring Commission (EMC) makes the selection of cities and decides in which cities demonstration projects will be developed.

Which are the criteria for participation in DemoUkrainaDH?

The criteria for participation in DemoUkrainaDH are listed in the section Eligibility. For more information, contact the DemoUkrainaDH Coordination office.

What happens after selection of a demonstration project?

When cities have been selected by EMC for participation in DemoUkrainaDH representatives from the city and the district heating utility will be invited to participate in an introductory seminar.
The project preparation will be supported with Technical Assistance by an experienced district heating consultant team (a Project Management Consultant (PMC)) provided by Sida. The district heating utility has to form a Project Implementation Unit (PIU) to cooperate with the PMC team in development of the demonstration project and a loan application to NEFCO. After approval of the loan application the PMC will support the PIU during implementation of the project.

What is a demonstration project?

Typical demo projects address to demonstrate how to solve the most serious problems of the district heating sector in Ukraine – technical inefficiency and insufficient financial viability of the district heating supply – in a small or medium-sized scale replicable in larger scale. Read more about Typical Demonstration Projects.

What is E5P?

E5P is the Eastern Europe Energy Efficiency and Environmental Partnership, established during the Swedish EU presidency in 2009. E5P is funded by the European Commission, several EU countries and Ukraine.

To read more follow the link: Information about E5P

FAQ – Project Preparation

What is the scope of Project Preparation?

The project preparation phase starts when the project has been approved by EMC. The main activity during the project preparation phase is the elaboration of a business plan for the demonstration project. The scope of the business plan is a technical, financial and environmental assessment of the project’s feasibility and elaboration of a financing and procurement plan envisaging  how different parts of the project are proposed to be financed and procured.

Who is involved in Project Preparation?

The business plan is prepared by the PMC with assistance of the project partner, involving both relevant capacities of the DH utility and the city administration.

When can financing agreements be signed?

The financing agreements includes loan, grant and guarantee agreements. When the business plan has been approved by NEFCO a loan proposal will be submitted to the project partner for consideration. Upon agreement of the loan proposal financing agreements are prepared by NEFCO to be signed when the municipal guarantee for the project has been approved by the Ministry of Finance of Ukraine.

What is Project Management Consultant (PMC)?

The Project Management Consultant (PMC) is an international consultancy assigned by NEFCO to provide technical assistance to project partners during project preparation and project implementation.

FAQ – Project Implementation

What is the scope of Project Implementation?

The project implementation phase starts when the business plan has been approved by NEFCO and EMC. The project implementation phase involves several steps – preparation and submission of invitation to tender and tender documents, tender period, tender evaluation, award of contract - before the physical implementation at site can start. During implementation of the project loan and grant proceeds are disbursed in relation to works and deliveries performed. As a basis for disbursement progress reports have to be prepared by the PIU(Project Implementation Unit).

Who is involved in Project Implementation?

During commencement of the implementation phase the Project Partner is obliged to establish a Project Implementation Unit (PIU). The PIU shall have overall operational responsibility for proper implementation of the Project and for coordination and monitoring related to implementation including the procurement of goods, works and services for the project. The PMC should support the PIU during the implementation of the demonstration project (preparation of tender documents, tender opening and evaluation, contract finalisation, supervision and reporting during project implementation), as required.

How is tendering and procurement arranged?

Procurement should be carried out in line with the NEFCO Procurement Guidelines (available for free download in English, Ukrainian and Russian from http://www.nefco.org/how_to_work/procurement_guidelines).   
Please, consult also the NEFCO  Guide to Tenderers - Annex 1 to 2013 Procurement Guidelines  (available for free download in English, Ukrainian and Russian from http://www.nefco.org/how_to_work/procurement_guidelines).
Contracts should normally be awarded on the basis of open tendering. The rules and practices for carrying out procurement should not discriminate between foreign and local products, suppliers or contractors and the procedures should be transparent and fairly applied. PMC advices on appropriate documents and procedures and assists the PIU in preparation of tender documents and invitation to tender and during the tender period.
Tender documents should be sent to NEFCO for its review and no objection.

How is tender evaluation and award of contract arranged?

In Open Tendering award of contract requires that the offered goods or works meet the specifications defined in the tender documents. Furthermore, the tender and the tenderer have to meet the criteria defined in the tender documents; the tender to be considered responsive and the tenderer to be qualified to perform the contract. 
A tender evaluation committee should be appointed by the project partner to be responsible for tender evaluation. Procedures for tender evaluation are seen from NEFCO Procurement Guidelines, http://www.nefco.org/how_to_work/procurement_guidelines).    
The tender evaluation report should be sent to NEFCO for its review and no objection. 
Prior to award of contract the proposed contract should be sent to NEFCO for its review and no objection.

What is a Project Implementation Unit (PIU)?

The Project Implementation Unit (PIU) have overall operational responsibility for proper implementation of the Project and for coordination and monitoring related to implementation including the procurement of goods, works and services for the project. PIU should be assigned by the project partner for the period of project completion and it should employ the qualified staff with appropriate competences in all components of the project.

What are the requirements to be fulfilled for disbursement of loan and grant?

The requirements to be fulfilled for disbursement of loan and grant are shown in annex 1 to financing agreements. 

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