Project: energy-related modernisation of residential buildings

Grant recipient: homeowner cooperatives under Latvian law, private homeowners not in a cooperation and local authorities

The above named project has its origins in a pilot project undertaken by the land Berlin and successfully completed in October 2001: "Ozolciema iela 46/3" in the Riga city district Zemgale. At the end of this project energy saving measures (building insulation, new windows etc) had reduced energy needs for heating by around 55%.

Eligible for funding under the project "energy-related modernisation of residential buildings" are energy saving measures for the complex energy-related modernisation of existing and occupied residential buildings in Latvia. The measures funded will implement a uniform concept for entire buildings and will benefit all the flats in a block. Under the conditions of the framework funding agreement, these are energy saving measures for heating in multi-storey residential buildings. This includes e.g. complete thermal insulation for the whole building shell and the modernisation of heating equipment for individual regulation with a record of consumption for each flat. In selecting the measures for funding, due consideration must be given to modernisation measures already carried out Renovation of stairwells and measures for improving the living environment in accordance with the conditions laid down in the framework funding agreement will also be financed. Funding will not be provided for other necessary modernisation measures to the building.

This new project has a special demonstration character in its financing construction and the provision of individual credits from this construction for system-built residential buildings in different Latvian cities. Such a financing model is a milestone in environmental protection in Latvia. We can expect this project to be a major step towards Latvia's own credit-based building modernisation programme, which could later even become a part of a Latvian climate protection programme. Since in the CEE and CIS countries there are at present around another 43 million system-built residential units still requiring energy-related modernisation, successful completion of the BMU pilot project could serve as an example for other countries.

The project will be funded through interest rate subsidies and investment cost grants from the BMU up to an amount of 1.983 million euros for a tied loan from the KfW (5 million euros). The KfW will act as the authorised agent of the BMU and carry out both the technical and administrative work of the project.

The duration of the project has been extended to the end of 2005.