HEP Heating Awarded Contract Worth Approximately 700 Million Kuna

Lauren Simmonds

Copyright Romulic and Stojcic
Zagreb, Croatia
Zagreb, Croatia

As Poslovni Dnevnik/Suzana Varosanec writes on the 20th of November, 2020, the contract for the revitalisation of the hot water network of the City of Zagreb with a total value of 699.6 million kuna, of which 421.5 million kuna is financed by grants from EU funds, was handed to HEP Heating, the Ministry of Regional Development and EU Funds announced.

As they pointed out on this occasion, this is the 14th largest capital strategic project of the Republic of Croatia to be signed in the programming period between 2014 and 2020, and at the same time, it represents the largest amount allocated to Hrvatska elektroprivreda (HEP) so far from European Union funds. According to the Minister of Regional Development and EU Funds Natasa Tramisak, the implementation of this contract will revitalise 68.5 kilometres of the city’s hot water network and improve the supply of 100,000 households across the City of Zagreb, which will ensure its citizens a reliable and continuous heating supply.

“With the delivery of this contract, we’ve signed large strategic projects worth more than 16 billion kuna, and all of them are being implemented and will be underway until 2023. Another important contract remains to be signed, and that is the construction of a broadband infrastructure network, which will be signed within a three week period,” announced Tramisak, adding that in the next programming period between 2021 and 2027, within the set parameters and guidelines for a greener Europe, there will be a lot of support the development of such projects.

Works on the revitalisation of the hot water network of the City of Zagreb, which supplies more than 100,000 households, will be carried out over the following three years in several phases, and will include the replacement of almost a third of the existing hot water network. The works which will be performed by HEP Heating will take place in in 2021, 2022 and 2023 across an array of areas within the capital.

With this contract, the HEP Group has withdrawn funds in the amount of almost 1 billion kuna from the European Union in the last three years, and according to HEP CEO Frane Barbaric, a new high-efficiency plant worth a massive 900 million kuna will further contribute to the provision of a much better heating service in Zagreb, and the production of electricity and heat that will be put into operation in 2022.

With this revitalisation project, the technologically obsolete hot water network will be revitalised with more modern technology including the channelless laying of pre-insulated pipes, which will increase the reliability and safety of the central heating system of the City of Zagreb. This HEP Heating project will reduce heat losses by approximately 28 percent, running water replenishment losses by approximately 47 percent and the number of emergency interventions on reconstructed hot water sections by 90 percent in comparison to back in 2018.

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