Housing and utilities sector is one of the greatest problems in our country. Critical deterioration of the equipment, lack of financing, the tariffs non-compliance to real cost of services and a very high price of ?blue fuel? create seemingly vicious circle of problems, to solve which is extremely difficult. However, it is possible. It proves the experience of one of the best municipal enterprises of Ukraine ? the municipal enterprise of heat networks ?Cherkasy heat commune energy of Cherkasy city Council?. Having survived the hard times of Soviet Union collapse, the turbulent years of the formation of independent Ukraine, permanent crises and lack of financing, the company managed to reach the level of profitability and it was not an easy task for enterprises of the municipal sector. 000000019

Now ?Cherkasy heat commune energy? supplies heat and hot water to the consumers of Cherkasy, serving 40 thousand subscribers among the population and more than a thousand of enterprises. It has 34 boiler houses, 82 central heat points, 180 km of thermal networks.

A new stage in the enterprise development began with the leadership of Nikolay Ivanovich Kushnir, who is an active, enterprising and highly professional person. At that time, the debts of the heat-supply exceeded the value of fixed assets three times and the company was actually on the verge of bankruptcy. The new leadership, understanding that to overcome such problems will not be easy, worked out a plan of action regarding the further development of ?Cherkasy heat commune energy?. In particular, in 2002 it was decided to construct own power station, to which in 2003 was received financing from the city budget in the amount of 1 million UAH - a significant sum for those times. Having considered all possible options, the representatives of the heat-supply system decided to obtain the acquisition of gas-piston machines manufactured by the American company Caterpillar - at that time the best in the world. The construction was carried out by own resources of the enterprise, thus costs were minimized. The plant has started in 2005 and has worked the most of motor hours in Ukraine. The project had a significant economic impact, because in addition to the supply of electricity, the company has got the opportunity to sell also thermal energy released in the process of generating electrical current. Simultaneously there were works on modernization and replacement of heating networks.

?It was very hard," says Mykola Kushnir, - but in 2006 we have reached the level of profitability. In 2009 in the national business rating we took the first place in Ukraine among the enterprises of thermal power industry?.

Realizing that the own funds of the enterprise are not enough neither for the full-scale upgrade, not even for scheduled repairs, heating network during the 2006-07 was actively involved in various state programs. For the time it were reconstructed more than 10 boilers and installed modern boilers. But the funds on more ambitious projects were still not enough. Then there was an idea to attract funding from the EBRD bank.

This project became a real test both for the company and its staff. The team of ?Cherkasy heat commune energy? was a pioneer in cooperation with the EBRD, so they had to overcome significant difficulties. All the bureaucratic stages of loan processing were overcome, the audit was carried out and employees of the bank developed a feasibility study, the English speaking group of legal and technical professionals was formed. The conditions of the bank were extremely hard. It did not just loaned money but it monitored the financial condition of the enterprise, developed a plan of corporate development, recommended future actions, trained the staff, discussing in detail all the conditions, which needed to be fulfilled in the framework of cooperation. It was changed even the structure of the enterprise. The preparatory period lasted for 2006-07?s. The loan agreement was signed in 2008 and included loans in the amount of 11.2 million euros.

?This is a very interesting experience, " says Nikolai Ivanovich, - we are pleased with our cooperation with the EBRD since in the process of work has changed for the better not only the enterprise, but also the outlook of employees. Indeed, in the framework of creation of TEO we drove all over Europe and on the results of the trip we have implemented a number of extremely effective events?.

At the expense of credit funds ?Cherkasy heat commune energy? has managed to implement a number of important projects. In particular, it was built a boiler room with a boiler 2.5 MW, operating on biofuel agricultural wastes. ?We were the first who made the project of such a scale in Ukraine. - Says Mykola Ivanovich. - And it so happened that this object gives the highest profit, because the cost of such thermal energy is about 2 times less than that of gas. In my opinion, this is the way to go in the field of heat supply?.

Later on, the boilers were reconstructed and 4 new boilers were installed with an efficiency of 96%. Simultaneously was conducted the replacement of heat networks using high-performance pipes of European production, heat loss of which is in amount of 2-3%. In addition, already having positive experience in operation of power stations of 1.4 MW, the company has built under the project 3 more similar objects. This is an important investment that will have a serious economic effect after putting it into operation.

Within the project were also installed 109 heat points that allow consumers regulating the temperature both in the pipes of hot water and heating. Such events provide the opportunity 30% saving of thermal energy. The events of such scale were implemented for the first time in Ukraine.

?Cherkasy heat commune energy? never stops, planning to take a second loan in EBRR bank, the terms of which will be even more profitable for the enterprise. And the bank authorities agree to provide the financing, they even offer a special grant. At the expense of the funds the company plans to build a power plant on biofuel (graft and agricultural waste), to install another 3 the biofuel boilers, additional automation and dispatching, to install new substations. A preliminary draft of the project was done.

The rating of ?Cherkasy heat commune energy? is extremely high for investment. The enterprise has numerous awards and diplomas, as well as the head of the company does. In particular, in the competition among municipal heat-power engineering enterprises on results of work for the first half of 2013 ?Cherkasy heat commune energy? has taken third place in Ukraine.

?This is a hard time, for us too, - said Mykola Kushnir.- And we should thank the team that even in these conditions we managed to keep our position and the pace, which exists today and distinguishes us among other enterprises. We have everything to demonstrate to others and to be proud of.?

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