ELECTRICITY SYSTEM UPGRADE

(i) the design works for the reconstruction of metering systems have been performed;
(ii) the works for the reconstruction of metering systems have been completed;
(iii) working current transformers accuracy class 0.2S (0.5S) have been procured;
(iv) the reconstruction of metering systems has been carried out;
(v) installation and commissioning of 585 meters from the total supplied within the A1 package;
(vi) the meter testing has been carried out by the State Expertise;
(vii) buildings for the installation of metering systems have been constructed.

HEATING SUPPLY AND EFFICIENCY IMPROVEMENT

Package 3833-MD-B3 Design, Supply, Installation, Testing and Commisioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems

Status: closed, contract fully disbursed

The packages B 3.1 and B3.2 referred to the Design, Supply, Installation, Testing and Commissioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems in a range of social institutions of regional and national importance throughout the country, namely:

Institutions benefiting from the implementation of Packages B3 and B2:

Thus, the Project B3 has been divided into 2 lots:

Contract History:

The public bid opening for the Package 3833-MD-B3 Design, Supply, Installation, Testing and Commissioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems in Lot 1: Objects of Hincesti, Leova, Nisporeni, Straseni District Councils, and Lot 2: Objects of Briceni, Falesti, Ialoveni District Councils and Ministry of Health took place on November 22, 2004, 10 o'clock, in the Conference Room of the MEPIU. A total number of 5 (five) bidders submitted bids until 10.00 hours, Chisinau time, on November 22, 2004.

As the result of Bids Evaluation, the following companies were selected for award:

- for Lot 1: “Romenergo”, Romania

- for Lot 2: Consortium led by “Incorgaz”, Republic of Moldova

The Contract for Lot 1 were signed in March 2005.

- As of December 31, 2005, the installation and testing of boilers, distribution pipes, heating substations and internal

systems have been completed.

The Contracts for Lot 2 were signed in May 2005 (May 11 and 26, 2005)

- As of December 31, 2005, the installation and testing of boilers, distribution pipes, heating substations and internal systems have been completed.

The new systems have been successfully installed.

Output:

New, modern, efficient equipment procured, installed, commissioned, and operating effectively. Systems rehabilitated.

Outcome:

Starting from the beginning of 2006, FVB consultants complete on a regular basis performances review of boilers. This repeated verifications showed that the installed equipment functions in accordance with the technical specifications in the TD and provides the expected benefits in terms of energetic and economic efficiencies and is answering to the environment protection requirements. Implementation of contracts under B3 package, led to substantial improvement of the availability, quality and efficiency of heating for selected public buildings. Long-term

outcomes are the proper functioning of the given institutions, improvement in the population health protection and educational progress, as well as proper working conditions for the medical and educational staff working in the selected institutions.

The Operational Acceptance Certificate has been signed on November 3, 2008. The date of operational acceptance is October 28, 2008, but there have been mentioned in the Operational Acceptance Certificate as remaining items to be finalized the connection of the pharmacy and laundry to the newly installed steam main.

Outputs:

- 2 steam boiler plants (1 for the Republican Clinical Hospital and Cardiology Clinic, 1 for the Oncology Institute), to supply steam for technological needs and DHW preparation, and to serve as reserve heating source for priority buildings;
- Substations for preparation of DHW in buildings, supplied from the steam boiler plants;
- Replacement of steam/condensate and HW distribution pipes, including pipes for connection to the DH system;
- 1 HW boiler plant for heating and DHW needs of CPRYC, distribution pipes, an individual substation for connecting internal heating and DHW systems, partial replacement of internal heating system, total reconstruction of internal DHW system of the building.

Outcome:

Improved heating, technological steam & DHW supply of selected public buildings.

Institutions benefiting from the implementation of packages B5 and B6:

Package 3833-MD-B2 Minor renovation works of objects at Floresti, Falesti, Straseni and Cantemir

Status: closed, contract fully disbursed

The Moldova Energy Projects Implementation Unit (MEPIU) acting on behalf of the Ministry of Energy of Moldova for the Municipalities of Floresti, Falesti, Sraseni and Cantemir invited eligible bidders to quote for minor renovation works of objects at Floresti, Falesti, Straseni and Cantemir.

The tender was advertised in the national gazette "Moldova Suverana" of 30th July, 2004, in the economical newspaper "Logos Press" of 30th July, 2004. There were sold 25 packages of documents (12 companies).

The public bid opening for the Package 3833-B2, minor renovation works of objects at Floresti, Falesti, Straseni and Cantemir took place on September 2, 2004, 10 o'clock, in the Conference Room of the MEPIU.

A total number of 6 (six) bidders submitted 9 bids until 10.00 hours, Chisinau time, on September 2, 2004.

After the consideration by the Evaluation Committee of the received bids for minor renovation works of objects at Floresti, Falesti, Straseni and Cantemir, according to the evaluation results and after confirmation of "No-objection" from IDA, the contracts were awarded: 1 Contract for minor renovation works at Kindergarten No. 3 at Cantemir to company SA Constructor-Cantemir; 2. Contract for minor renovation works at school nr. 1 Straseni to company SRL Pancons-Com.

There were no quotations accepted for the objects at Falesti and Floresti. These works will be financed from the local budgets.

Works foreseen under the given package have been finalized.

Package 3833-MD-B1 Supply, Installation, Testing and Commissioning of Boilers, Distribution Pipes, Heating substations and Internal Heating Systems for Floresti, Falesti, Straseni and Cantemir

Status: closed, contract fully disbursed

The Moldova Energy Projects Implementation Unit (MEPIU) acting on behalf of the Ministry of Energy of Moldova for the Municipalities of Floresti, Falesti, Sraseni and Cantemir invited eligible bidders to bid for supply, installation, testing and commissioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems in Floresti, Falesti, Sraseni and Cantemir.

The tender was advertised in the national gazette "Moldova Suverana" of 15th January, 2004, in the economical newspaper "Logos Press" of 16th January, 2004, in UNDB. Invitations were sent to all foreign embassies in Moldova (17 embassies) and to those companies that manifested their interest (48 companies). Twenty three companies bought tender documents.

The public bid opening for the Package 3833-MD-B1, supply, installation, testing and commissioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems in Floresti, Falesti, Sraseni and Cantemir, took place on March 18th, 2004, 10 o'clock, in the Conference Room of the MEPIU.

A total number of 4 (four) bidders submitted bids until 10.00 hours, Chisinau time, on March 18th, 2004.

After the consideration by the Evaluation Committee of the received bids for Supply, Installation, Testing and commissioning of Boilers, Distribution Pipes, Heating Substations and Internal Heating Systems in Floresti, Falesti, Sraseni and Cantemir, according to the evaluation results and after confirmation of "No-objection" from IDA, the contract was awarded to the Consortium led by "Romany Gaz Group", Republic of Moldova.

Implementation of contracts under B1 package, having as beneficiaries 4 municipalities, led to substantial improvement of the availability, quality and efficiency of heating for selected public buildings (mainly schools, kindergartens and cultural institutions for children) in Floresti, Falesti, Cantemir and Straseni. Following the collapse of the old district heating systems, these institutions did not have a proper heating of their buildings, leading to difficulties with their normal functioning during the winter, and to health risks for the children and personnel. Before the implementation of the project these objects were heated with electric heaters, stoves, a few of them had old inefficient coal boilers or were not heated at all and did not function during the winter. The new systems include modern efficient gas-fired automatic boiler plants, ensuring an optimum heat supply depending on the outside temperature and on the demand. In some cases energy conservation measures were provided (implemented under B2 package in 2004). Operation of the new systems will ensure normal conditions for functioning of the institutions and will have a significant social impact.

All the systems have been successfully completed.

Institutions benefiting from the implementation of B1 package:

Supply and Installation of Boilers, Distribution Pipes, and Heating Substations for Ungheni

Status: closed, contract fully disbursed

The Pilot Activity has been implemented for Municipality of Ungheni, including installation of 4 heating plants, connection pipes and individual heating substations for 3 Kindergartens and the Medical College. The capacity of the heating plants allows the connection of the neighboring residential buildings to the heating sources.

Ungheni was chosen because the Municipality of Ungheni elaborated and started to implement a program of restructuring and decentralization of the old centralized heating system, which became non-functional. According to the Municipality’s plans 15 new heating plants had to be built. The Pilot Activity fitted perfectly into this program and contributed to the testing of the new concept of rehabilitation of heating systems in small towns in Moldova.
The Pilot Activity was preceded by a number of actions undertaken for the preparation and starting of the Heating component of the Energy II Project. Among most important the following actions can be mentioned:

With the technical assistance granted by the Swedish International Development Agency (SIDA) the Study Strategic Heating Options in Moldova was elaborated. Based on the analysis of the situation in 6 representative cities – Chisinau, Balti, Soroca, Ungheni, Orhei, and Floresti, recommendations were provided regarding ways and possibilities of resolving the problems of the heating sector, and the concept of an investment pilot project was proposed.

MEPIU, together with the Municipality of Ungheni and with the assistance of SIDA consultants, prepared according to the World Bank regulations bidding documents for supply and installation of 4 modular heating plants in Ungheni, Moldova, of preinsulated distribution pipes between the heating plants and the adjacent public buildings and prefabricated heating substations. The chosen tender procedure was the one described in World Bank Guidelines.
The invitation to bid (Specific Notice) was published in “Development Business" on line on August 18, 2001 and in the national press of Republic of Moldova. Besides, the invitation was sent to all the foreign embassies in Moldova and to a number of specialized companies from Moldova, Ukraine and Romania.

The tender took place on October 1, 2001, and on October 18, 2001 the World Bank, after verification of the bid and of the evaluation report, accepted the decision of the Evaluation Committee. The contract was awarded to a Consortium from Republic of Moldova including: „Romany Gaz Group” S.R.L., Coloana Mecanizata pentru lucrarile de gazificare din or. Chisinau” S.A., Intreprinderea Mixta Moldo-Romana „ROCARO” S.R.L., Intreprinderea Individuala „Termoteh-Gavrilicenco” and „CADCAM Grup” S.R.L.

Initially it was planned that the heating plants would use liquefied gas (propane), because Ungheni was not connected to the national natural gas network. But during 2002 a real possibility appeared to build the gas pipeline Cornesti–Ungheni about 40 km in order to supply natural gas to Ungheni. In relation to this, the Employer requested for necessary changes to be made in the installation schemes, and testing and commissioning of equipment to be postponed until the moment when natural gas is available.
Thus, the tests and commissioning were carried out in December 2002 – February 2003. The results of the tests were confirmed by the Gas Technical Supervision State Inspection. The Employer issued operational acceptance certificates.

Three modular heating plants were installed in the existing buildings of the former central heating substations of the former centralized heating system. One heating plant was installed in mobile containers. All the 4 plants are automated and monitored remotely. Parameters (temperatures, pressures, levels, consumption, etc.) and technological processes from the heating plants and individual heating substations are automatically regulated within the Centralized Informational System for telemetry and remote control of the municipal heating objects.
Thus the heating plants built within the Pilot Activity, together with other 11 autonomous heating plants built by the Municipality of Ungheni formed a single municipal system for heating supply organized based on new principles.
The heating plants were operated satisfactorily during the 2002-2003 and 2003-2004 heating seasons.
MEPIU requested the Municipality of Ungheni to keep accountancy of all expenditures (including local funds from the municipal budget or from other sources) within the Project in separate books; the procured equipment should be on the balance of Municipality of Ungheni and should not be transmitted to the heating enterprises or public institutions.

MEPIU cooperated with all the parties involved in the Project and ensured that the process took place according to the World Bank procedures and to the legislation of Republic of Moldova.
The Ministry of Energy, which ensures the general coordination of the Energy II Project, monitored the Pilot Activity and offered MEPIU the necessary support in resolving various issues in the process of preparation and implementation of the Pilot Activity.

MEPIU offered logistic support to Municipality of Ungheni in preparing proposals regarding objects included in the Pilot Activity, during bid evaluation, Contract negotiation and implementation monitoring. Cooperation with Municipality of Ungheni was open, efficient and complete.
The main positions of the Pilot Activity, including the conditions of the subsidiary loan allocated to the Municipality of Ungheni by the Ministry of Finance, were approved by the MEPIU Supervisory Council, and afterwards, by Ungheni Judet Council.

MEPIU benefited from the assistance of a consultant from the Swedish company “FVB District Energy”, financed by the Swedish International Development Agency (SIDA).
Other parties involved were the Ministry of Finance, Customs Department and commercial banks, which operated payments within the Contract.

The Ungheni Pilot Activity offered useful experience for preparation and implementation of investment projects within the heating component of the Energy II Project. All the main elements of the process were tested:

The Pilot Activity has shown that in conditions of Moldova, decentralization of old heating systems, which are not functioning in small towns, is a rational solution for heating supply. Using some elements of old centralized systems, like buildings of former central heating substations and partially pipes, can reduce considerably the amount of investments.

Building heating plants with a capacity sufficient for supplying to both public and residential buildings from the area can represent the main solution for heating in small towns with the condition that:

Before the implementation of the Pilot Activity and of the municipal gas and heat supply program, heating was not available in Ungheni for 3 years. In May 2001, when the preparation of the bidding documents for the Pilot Activity started, it was intended that the installation works should be completed until December, in order to supply heat to social objects already in the 2001-2002 heating season. This is the cause why in August 2001, when the tender was announced, only 6 weeks were given for the preparation of bids, and a short period for supply and installation (14 weeks). Because of these harsh conditions a number of companies, initially interested, retreated from the competition.

The practice showed that the procedures of coordination, approval of different documents in the implementation process of investment projects require a certain period of time, which can not be reduced significantly. Thus, theproject preparation and implementation cycle cannot be smaller than about 8 months.

The Municipality mentioned the good and efficient operation of the new systems built under the Project. The Pilot Activity formed a base for reorganizing and reconstruction of the heating systems in Ungheni according to new principles – decentralized district heating – construction of block boiler plants for heat supply to residential building and public institutions. Following the Activity, the municipality built other 10 new boiler plants, using natural gas, that cover the needs of most of the public institutions and residential consumers. So, a network of 14 boiler plants (including 4 built within the Project), with a total capacity of 36,6 MW (including 12 MW – boiler plants built within the Project) are operated, substantially reducing the cost of thermal energy. According to data from the municipality of Ungheni the cost of heating for a square meter of residential area, supplied from the new systems is 6,53 lei, compared to 12-14 lei in case of the old system supplied from an old oversized mazut boiler plant, and the payment level is about 90% at present, compared to 30% in 1999 – the last year when the old plant was operated. The positive experience in Ungheni is used in other towns for restructuring their heating systems.

Pictures of boiler plants built in Ungheni.

• Container boiler plant in Ungheni
• Inside a boiler plant in Ungeni
• Boiler plant equipment

CONSULTING SERVICES

Package 3833-C4 Wholesale Market Rules, Benchmarking and Legal Audit

Status: closed, contract fully disbursed

B1: Business Planning: Financial planning model document; Corporate Development Plan document; Business planning workshop.
B2: Cost Savings and Organizational Restructuring: Diagnostic Study on Cost Savings; Cost Savings Action Plan; Human Resources Policy Document; Cost Savings Workshop.
B3: Management Information System (MIS): Diagnostic Study on MIS; MIS Action Plan. MIS Workshop.
B4: Organizational chart: Diagnostic study – analysis of existing chart. Recommended chart.
B5: Customer Relations (CR): Diagnostic Study on CR; CR Workshop; Action Plan on Customer Relations.

Outputs:

Outcome: