92493 Kyiv Public Buildings Lead Ukraine's Push for Energy Conservation July 14, 2006 Ukraine, Kyiv - First published in July 2006 - Until recently, Ukrainians typically used only one measuring device at home: the electricity meter. No attention was paid to devices that measure hot and cold water consumption, gas, or heating. The reason is simple: during Soviet times, energy was so cheap that it wasn't necessary to monitor its use.  Since Ukraine became a market economy and suddenly had to deal with abrupt increases in the price of energy, the need arose to radically change public consciousness regarding energy efficiency. Given the low living standards of the population, it was virtually impossible to raise prices for communal services. So administrative and public institutions - including schools, hospitals, kindergartens and the like - took the lead. They needed to learn energy conservation since previously control over the consumption of heating and water in such places was almost nonexistent.  The first serious attempt to resolve this problem in Ukraine was made in the City of Kyiv. The World Bank helped this endeavor become reality through the Kyiv Public Buildings Energy Efficiency Project ("the Project") over a period of five years, from August 2000 to July 2005. The Kyiv City State Administration (KCSA) and the Swedish International Development Authority (SIDA) also took part in the project on a partnership basis. The importance of the Project was that its goals and tasks ran parallel to those outlined by the State Complex Program for Energy Conservation, developed by the Ukrainian government in 1996.  The main goal of the Project was to enhance the level of energy efficiency of public buildings through technical improvements and a rational pricing policy for heating. The Project was also aimed at promoting the development of the local energy conservation market and related service industries that only began operating in Ukraine at that time. Energy efficiency measures in 1,302 public buildings in Kyiv  The Project covered 1,302 buildings in the capital, including medical, cultural and educational institutions whose total area totaled more than five million square meters. All of them were owned by the KCSA. During implementation of the Project each building was equipped with heat meters, and most of them (1,173, or 90%) were also provided with new heat generators. In many administrative and public buildings, radiators were replaced with new ones, and new heat conduits and sealants were installed. In some cases even the windows were replaced.  With the aim of rationalizing the use of hot and cold water, modern shower and bath fixtures were installed in many medical buildings - mostly at maternity homes and general hospitals. Altogether, 3,727 sets of modern fixtures for shower/bath rooms were installed by the end of the Project. Savings in heating are expected to reach 26% in 2006  The efficiency employed in implementing the Project is evidenced by the fact that by the end of 2004, the level of energy efficiency in administrative and public buildings was nearly 17% higher compared to that of 2000. These savings in heating are expected to reach 26% starting in 2006.  Activities within the Project had a substantial impact on the creation of a market for energy conservation service providers in the capital and beyond. During its initial stages, only a few Ukrainian companies specializing in energy conservation were cooperating with the Project, but this number grew substantially over time. Now, out of 29 contracts for supply and installation of energy conservation equipment, 27 were carried out by Ukrainian companies. In addition, technical inspections and developments were carried out by Ukrainian firms and specialized institutions, some of which were privatized during implementation of the Project. Energy conservation may spread to general population, other cities and improve environment  An important factor in the success of the Project was the support given by Kyiv city authorities for their policy of reducing utility rates. In particular, state and private utilities were encouraged to switch to using natural gas instead of expensive heating oil. This in turn helped improve the ecological situation in the city - a fact that can also be considered a positive outcome of the Project.  Project activities were not confined to cooperation with City of Kyiv administrative buildings and local communal service providers. The Project drew attention to and aroused interest among the general public in energy efficiency issues and contributed to citizens' understanding of the importance of forming a competitive national economy and of reforming the housing sector and municipal economy.  The total real value of the Project exceeded $24 million, though this figure could have been much higher. Due to the level of competitiveness among contractors, it became possible to substantially reduce the cost of certain contracts financed out of the proceeds of the World Bank loan, thus saving $2 million.  The success of the Project has also been recognized by specialists working in the sphere of public utilities and energy efficiency. These specialists are convinced that the experience the City of Kyiv accumulated within the framework of the project is worth spreading to other Ukrainian cities and towns. Also Read: Making Kyiv More Energy Efficient (published in 2004)