District heating systems (DHSs) are very significant in Serbia as a means of heating multiple domestic and commercial properties. Rehabilitating, replacing, or setting up efficient DHSs and keeping them well-maintained is very important, given that 20% of Serbian households are connected to one of the 50 systems across the country. Modernisation and rehabilitation of DHSs were desperately needed since the long-term underinvestment has left many of the production and distribution facilities in poor technical conditions which in turn led to inefficient heat production as well as high losses of valuable resources - water and energy.
After the successful implementation of the first three phases of the Programme "Rehabilitation of District Heating Systems in Serbia", Phase IV has continued the implementation of the Programme with the modernisation and reform of additional 18 district heating companies (DHCs). The objective was to improve the technical and financial efficiency of DHCs in Serbia through the replacement of obsolete pipelines, substations, and production facilities, as well as their modernisation and automation. The Programme also aimed at introducing institutional and organisational reforms at the DHCs' level and enhancing their business policies and sustainability.
These 18 District Heating Companies were split into two groups, where nine of them benefited from the consultancy services provided by the Lead IFI - KfW. The remaining nine DHCs were subject to WBIF support. A technical assistance grant, provided through WBIF, supported the completion of the preparatory phase for the implementation of the investment measures and the institutional reforms for the second group of District Heating Companies.
