This report evaluates the Katowice Heat Supply and Conservation Project financed by a US$45 million loan from the World Bank to PEC Katowice, Poland. The project's aims were to:
- enhance energy conservation and efficiency in the district heating sector;
- extend the life of existing district heating assets through rehabilitation and introduction of modern technologies; and
reduce environmental pollution through investments in energy-efficient equipment and systems as well as by supporting a program to eliminate coal-fired heat-only boilers. In terms of implementation, the project involved:
- an investment component consisting of investments in equipment to optimize the existing district heating system; and
- technical assistance through consultancy services, studies and staff training.
The evaluation rated the project's outcomes as "satisfactory" and key lessons learned are related to issues concerning:
- demand forecasts,
- tariff policies,
- financial covenants,
- entity financial management,
- corporate governance,
- institutional development,
- reallocation of substation benefits, and
- involvement of local combined heat and power plant.