About The Project / In details

FINANCIAL MECHANISM OF THE EUROPEAN ECONOMIC AREA 2009-2014

MINISTRY OF  ENERGY

PROGRAMME BG04 "ENERGY EFFICIENCY AND RENEWABLE ENERGY"

GRANT SCHEME: BG04-02-03 PROMOTION OF ENERGY EFFICIENCY AND RENEWABLE ENERGY MEASURES  IN MUNICIPAL AND STATE BUILDINGS AND LOCAL DISTRICT HEATING

Measure 1: “Energy Efficiency”

Project: BG04-02-03-001 “Energy efficiency in the heating systems of Kindergarten N10 and Municipal Social Complex in Dobrich

Project Budget: 415 001.78 BGN (212 187.04 Euro)

Duration: 18 months

Grant Contract No. BG04-02-03-001-011 signed on 18 August 2015

Name of the Beneficiary: Dobrich Municipality

Experience of the Project Promoter and Beneficiary in a project with similar scope

Experience of Dobrich Municipality in other projects with similar scope that have already been implemented successfully:

1.      Bulgarian-Norwegian Collaborative Project on Energy-Efficiency and Renewable Energy for reduction of Greenhouse gases in public sector in the Black Sea Region Municipalities - under the project have been implemented energy efficiency measures in Kindergarten No.2 “Radost” in Dobrich city Municipality and as a result is increased the comfort of habitation on the building which is with social character;

2.      Under the operational program Reginal Development was successfully implemented the project "Towards quality education in area Dobrich through renovated and modernized infrastructure". The project aim is carried out energy performance of buildings of seven big municipal buildings in Dobrich Municipality  - five schools and two kindergartens, through implementation and reconstruction of internal and external repairs;

3.      Energy renovation of four municipal buildings through ESCO services - reached more than 50% of energy savings, proven through energy monitoring systems in the renovated obuildings. 

Experience of the Partner and similar projects

Norsk Energi (www.energi.no) is a Norwegian consultancy with expertise in engineering and implementation of projects related to thermal energy, environment and safety. Our goal is to contribute to effective, environmentally friendly and safe use of energy, and abatement of CO2 emissions. Norsk Energi is the leading Norwegian consultancy company on district heating and utilisation of thermal energy produced from renewable energy sources. For the last 5 years our company have had more than 40 projects for retrofit and expansion of the Norwegian district heating systems, with a total capacity of approximately 1500 GWh. Norsk Energi has engineered more than 50% of the sub stations in the district heating network in Oslo, the capital of Norway. The company has been involved in planning, selection of suppliers and commissioning and automation of heating sub centrals and networks in more than 15 district heating companies in Norway since 2007. Norsk Energi has experience from project implementation in an array of countries in East Europe, the Balkans, South-Caucasus and Central Asia.  3 relevant projects: Identification of Energy Efficiency in DH systems and public buildings of 3 Ukrainian Cities; Assisting to Energy Management Systems for 6 Norwegian Municipalities;  Implementation of Energy Conversion investment project in Karelia

Detailed description of the project activities

Activity 1: Project organization and management

Within this activity, all the horizontal activities, which are directly related to the proper project implementation, the financial management and control, the internal monitoring, are logically grouped. The project organization and management have been implemented by the officers of Dobrich municipality and the project partners. Immediately after the project proposal approval and the grant contract signing, the members of the project team have signed the contracts with the beneficiary. The contracts are in accordance with the relevant legal regulations for contracting with persons participating in the project management team. The duties of each member of the project team are described in details in the contracts.

After signing the contracts with the management team members, organizational meetings are carried out, whose objectives are mainly:

• To allocate tasks and responsibilities of the experts involved in the project team;

• To develop rules and principles of work, internal monitoring, accountability and reporting;

• To review the schedule of the project activities and to develop a detailed plan;

• To review the schedule of tender procedures and to update it if necessary.

This activity is implemented during the whole process of the project implementation.

Activity organization and management of the project is carried out mainly by the staff of Dobrich municipal administration and experts from Norway partner have a complementary function as expert technical advice, control and monitoring in the process of implementation of the activities under the project.

Activity 2: Construction and repair works

At the beginning of the activity the contractors of construction and repair works in both buildings have been selected under the procedure for selection of contractors according to Public procurement law. The two buildings under the project have already implemented basic energy saving measures as specified in an energy audit report. Next stage will be a rehabilitation of heat supply system, with the main investment component being the replacement on the sites, which will lead to increase efficiency of energy generation and a reduction in fuel use. Construction works include the implementation of these two technical projects: "Replacing the boiler of gas and liquid fuel, construction of a new substation and internal heating of Kindergarten N10" and "Optimization of the heating system in the Municipal Social Complex through replacement of boilers and new heating system". The technical projects are in accordance with the Spatial Planning Act developed by order of Dobrich Municipality. They are an integral part of the application form and include projects in the following parts:

1. Part "HVAC and gasification"                                                                                                                                                                                                      2. Part "Electric"                                                                                                                                                                                                                                                                                   3. Part "Fire safety"                                                                                                                                                                                                                                       4. Part "Plan for Safety and Health"                                                                                                                                                                              Projects are developed in accordance with the prescribed measures in the energy audits of the buildings.

These project activities are outsourced. The contractors have been selected from Dobrich Municipality through an open tender procedure compliant to the Public Procurement Act. After that the implementers have been contracted.

Activity 3: Construction supervision, technical and investor supervision

The Law on Spatial Planning requires to be ensured Construction supervision during the implementation of the technical projects.               

Technical control provides for coordination of the technical project for compliance with the requirements for high-risk facilities - in the case of gas and pressure vessels, and control during installation of gas equipment and pressure vessels and the necessary follow-up trials with a view commissioning of the facilities.                                                                                                                                                                               Investors control will be carried out by an authorized representative of Dobrich Municipality, which will control the time of implementation of technical projects.

The activities of the construction supervision have been outsourced. The implementer has been selected from Dobrich Municipality by conducting of procedure under the Public Procurement Act. With selected participant are signed contracts.

Activity 4: Expert exchanges in Norway and Bulgaria

Within the project, the Norwegian competence centre on thermal energy, Norsk Energi have to collaborate and exchange with experience with the team of municipal experts specialists of four people in total, including members of the project team and / or experts from the municipal administration. Our joint activities include inspections of the two buildings to verify the improved internal comfort due to the implementation of energy efficiency measures. During these inspections both the Bulgarian and Norwegian partners perform activities together; this contributes to mutual transfer of experiences and practices in the field of energy efficiency and use of renewable energy. A study tour was organized for the Bulgarian experts to Norway. The Bulgarian specialists took part during this tour in training on ISO 50001 standards on "Energy Management" with the intention for obtaining ISO 50001 certified of Dobrich Municipality in future. The Norwegian experts of Norsk Energi have to visiting twice Dobrich Municipality. During these visits two informational events will be organized - Information seminar at the inception of the project and Local Energy Forum - on completion of rehabilitation measures in both buildings. The Norwegian partner is committed to providing consulting services in connection with the implementation of the planned project, including feasibility analyses and assessments, as well as shares its expertise with implementation of energy monitoring systems (EMS) in both municipal buildings, subject of energy efficiency improvements under the proposed project. To ensure effective implementation and usage of EMS, the staff and director of both municipal buildings have to be trained on how to run and maintain the newly established energy monitoring systems. In this way, by implementing a number of project activities jointly, the project will explore possibilities to establishing long-lasting partnerships, including joint participation in future projects aimed at sustainable and energy efficient development of European cities.

Activities are carried out jointly by Dobrich Municipality and Norsk Energi.

Activity 5: Publicity and Information

The activity includes measures that aim to promote the financial support given by the European Economic Area Financial Mechanism. The measures for information and publicity target to raise the awareness of the community of the project and to demonstrate its role and importance for the citizen of Dobrich. The activities are aiming to attract the target groups, beneficiaries and the community including:

1. Elaboration of web-site that will contain information in English and Bulgarian. The information on that site includes all the project information, project progress, achievements and results, cooperation with the partner from the donor-states, pictures, contact information and visualization of the financial contribution of the European Economic Area Financial Mechanism and the donor-states.

2. Conducting of several informational campaigns - Starting press-conference, interim press-conference for project implementation, Final press-conference and ceremony for the official opening of the buildings renovated under the project.  

3. Elaboration and dissemination of promotion materials, as follows:

 - 5 Paid publications;

- 1 Banner;

 - 1 developed/designed logo of the project;

- 300 Pads and pens with logo;

 - 200 flash memories with logo;

- 100 Folders with logo;

- 200 Eco-bags with logo

- 100 Agenda for the event;

      - 1000 brochures;

- 300 balloons with logo;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         - 6 informational signboards (2 temporary and 4 permanent)

To promote the results achieved during the project implementation and its potential future multiplication is provided presentation of the current project on other thematic regional or national events.                                                                                                                                                                                                     All of the information materials for the implementation of the project are in compliance with the requirements of the Manual for design and communication, where are published the exact technical parameters, regarding the logo of EEA Grants 2009-2014 for visualization of billboards, posters, publication, web-sites, etc.

The activity will be outsourced. The implementer will be selected from Dobrich Municipality by conducting of procedure under the Public Procurement Act. With selected participant will be signed contract.

Activity 6: Financial Audit

In the end of the project implementation an approved auditor have to audit and will prepare a financial audit report related to the financial implementation of the project. The report will contain exhaustive information on all financial aspects of project implementation.

The activity is outsourced. The implementer is selected from Dobrich Municipality by conducting of procedure under the Public Procurement Act. With selected participant is signed a contract.

Contribution of the Project for achieving the cross-cutting principles

Implementation of the project meets the basic principle of good governance - transparency, efficiency, effectiveness, legality and integrity                                                  

Openness: The two municipal institutions work openly with all members of the target groups. We are providing an access to project information, being presented in a way it is understandable to the general public, messages that will attract the attention of different stakeholders.

Accountability: The principles of operation of the two facilities are fully clear to all involved in its activities. All interested parties can be active participants in activities and make suggestions for new ones.

Efficiency: Based on an analysis of the needs of adequate services in the health and social activities are identified risk groups in order to ensure their future. Project t team: the project team include selected experts who will be involved in managing the project are relevant for the position with extensive education and experience in their field. They also have the experience in the implementation of projects financed by the EU and other donor organizations. This is a prerequisite for the successful management of the implementation of project activities, deadlines, achieving expected results and objectives, appropriateness and legality of the expenditure under the project funds.

Project outcome - details

Successful implementation of the project will increase the comfort of living in two large municipal buildings and will reduce the energy consumption for heating.  The important requirements for the applied buildings are met - to have a social purpose and have already completed basic energy efficiency measures - thermal insulation, replacement of windows, insulation of the roof and others, implemented in 2010. The Kindergarten N10 is refurbished under the project, financed by the Operational Programme for Regional Development; the Social complex is renewed by ESCO (Energy Savings Company) scheme. The main target of the measure is the replacement of existing and /or construction of new heating systems in municipal and government buildings. Therefore after expert analysis, as applicable were proposed two municipal sites - Kindergarten № 10 and the Municipal Social Complex (former kindergarten №30) and Dobrich Municipality has Municipal Council decision № 39-6 from 25 November 2014. In kindergarten №10 the heating system is heavily depreciated, energy- and extremely low efficiency (efficiency), heat dissipation is inefficient and leads to high energy consumption. The building is used from 103 children and 18 staff, 12 hour operation five days a week. The energy audit shows that the current state of the building and the heating system of the provision of the required sanitary - hygienic standards for thermal comfort possible in large expenditure of energy. There is great potential to reduce costs, as the main reserve is increasing the efficiency of the heating system. Established is the potential to reduce energy consumption by over 30%, which is equivalent to 46 272 MWh / year to 14.49 tons ecological equivalent emissions saved CO2 / year. Investment required to implement energy-saving measures amounting to 139 381 BGN without VAT and the payback period of the package of measures 19.2 years. After implementation of all specific ECM the total annual cost of the building, expressed in primary energy will be 136,8 kWh / m2y, which will meet the requirements energy class "C". A former kindergarten №30 was transformed into the Social Services Department to the Health and Social Policy, which accommodates a - Day Care Centre for children with disabilities, Day centre for adults with disabilities, Centre for social rehabilitation and integration, 2 shelters. Having in mind the status of the building in relation to the service quality of residents has changed mode of use of the building, consisting of three sectors. At present, the existing system does not allow flexibility and defies management which goal is not only to achieve economies, but also an adequate microclimate. It is compliance with sanitary requirements and achievement of appropriate temperature regime in the premises with 24 hours exploitation and the rest for rehabilitation with another microclimate. The energy modelling of the building shows that the heating system can be restructured relatively easy. Providing with condensing boilers with a new type of modulation of the combustion process and a new generation of programmable controllers will guarantee more than 35% reduction in natural gas. This practice has been shown in other municipal buildings with installed similar technology heating. The energy audit shows that the current state of the building and the heating system provides the required sanitary - hygienic standards for thermal comfort in a large expenditure of energy. The financial analyses show that there is a big potential for reducing of municipal costs for heating. Established is the potential to reduce actual energy required by 34%, which is equivalent to 122 851 MWh / year with ecological equivalent 47.19 tons of CO2 emissions saved per year. Investment required to implement energy-saving measures amounting to 132 643 lev without VAT and the payback period of the package of measures 10.4 years.

After implementation of all specific ECM total annual cost of the building, expressed in primary energy have to be 162,8 kWh / m2y which mince  that the building meet the requirements of energy class "D".

Dobrich Municipality is consistent in its policy on implementation of the Action Plan for Sustainable Energy 2020, developed under the commitments under the Covenant of Mayors and the European targets 3 x 20. Furthermore, Dobrich Municipality has certified integrated management system ISO 9001: 2008 for quality and ISO 140001: 2004 for environment, and separately is certified system for information security ISO 27001: 2005. In Activity 4 of this application form provided expert training. During the study tour in Norway Bulgarian experts will participate in training on ISO 50001 Energy management standard for future certification of Dobrich Municipality. Locally, Norwegian experts will share their experiences and best practices in similar projects. Regarding effectively using of the new installed system will be organized and conducted training of Directors and staff of the two municipal institutions on the work of the newly involved energy monitoring systems. On the other hand, in this way could be established long-term partnership, including joint participation in projects devoted to future energy sustainable development of the European cities.

Management and methodology for project implementation

Activity 1 provides project management. Dobrich Municipality, as a beneficiary will have a leading role in the project management and the partner will contribute to its quality performance, promotion and further multiplication. Dobrich Municipality is responsible for the conduct of all of the procedures for selection of contractor, according to Bulgarian Public Procurement Low.  After determining the implementers proceed to the implementation of technical projects for both buildings, will be provided parallel construction supervision and technical and investment control.

Through public procurement procedure is selected independent contractor who is qualified and with technical capacity to perform the work on independent financial audit of the project, which will contribute to the proper spending of funds received by the Beneficiary. The installed energy monitoring systems at both buildings and the trained experts will contribute to further control and monitoring of the energy performance of new heating systems. All activities described above are timely divided in the timetable, part of the application form).

Compliance with the national and EU legislation

he current project proposal is developed regarding implementation of local, regional, national and European policies in the field of sustainable energy, named: Action Plan for Sustainable Energy "Energy sustainable Dobrich 2020", developed in accordance with the European Covenant of Mayors initiative and targets 2 / 20/20; Municipal Energy Programme 2014-2020; Municipal Development Plan 2014-2020 Dobrich; Integrated plan for urban regeneration and development of Dobrich 2014-2020 and Municipal Program for Environmental Protection.

The project fully complies with the long-term energy roadmap Dobrich 2050, Priority 1: Modernization of infrastructure and quality of life for all, Objective 1.1. Introduction of measures to increase the energy efficiency of municipal buildings, as well as measures to achieve the objective 1.1. - Perform energy audits certification of buildings - municipal property, according to the Energy Efficiency Act; implementing the measures required in the energy reports; Introduction of systems for energy monitoring energy savings (EMS - Energy monitoring systems).

The project support the implementation of the targets of the National Action Plan for Energy Efficiency 2014-2016, developed in accordance with Directive 2012/27/ EC on energy efficiency.

 

Dobrich Municipality is officially joined and took the implementation of the commitments to the European initiative "Covenant of Mayors", whose main objective is the fight against climate change through concrete actions by 2020. The European Union has agreed (in October 2014) to a new set of targets for 2030, which include the reduction of greenhouse gas emissions  at least 40% compared to the level of 1990. In this regard, Dobrich Municipality developed the concept of low energy cities with a high quality of life for all due to the even more ambitious energy targets of the EU. Through its implementing this project proposal would contribute to achieving the objectives described above.

 

Relevance with overall objectives of the EEA FM

Aim of the Project

The main activity of the project, which helps to be achieved the global objectives of the EEA Financial Mechanism is Action 2: construction works, including the implementation of these two technical projects: "Replacement of boiler gas and liquid fuel, construction of a new substation and internal heating of kindergarten №10 " and "Optimizing the heating system in the Municipal Social Complex through replacement of boilers and  new heating system" in priority sector environmental protection and management.

The Project contributes to the reduction of economic and social disparities in the European Economic Area

Activities in the proposal that have been outsourced under public procurement procedures and this contribute to achieving the overall objective of the European Economic Area to reduce economic and social disparities.

The Project contributes to the strengthening of the bilateral relations between the Donor States and the Beneficiary State

The current project implementation is based on a partnership with Norsk Energi, Oslo, which was signed Intent partner agreement approved by the Municipal Council №39-6 / 25.11.2014g. After approval of project proposal the project partners signed the Partnership agreement, which clearly determinate the commitments of both sides, which are mutually beneficial.