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KHPP to Renew the Steam Pipe to “Korelita”
2009-07-17
Kaunas City Municipality Council approved the investment project of Kaunas Heat and Power Plant (KHPP) as regards the renewal of the industrial steam pipe of 4 km in length to the company “Korelita”.
Though the project, the implementation of which will result in the reduction of heat transfer losses, increase in reliability of district steam supply system and efficiency in the city, as well as ensure the lowest heat prices to industrial users, will not cost a cent to Kaunas City and during the economic crisis every investment is of vital importance, debates in the Council of Kaunas City were in delay due to twaddle of opposition figures.
It is planned to renovate 4038 metres of existing worn out and out-of-date steam supply systems and in place of them lay the pipes of smaller diameter and substantially better insulating features. Following the schedule of preliminary works and other project activities, steam pipe renovation works are planned to be completed in September of 2010.
Heat loss from the system will be reduced by about 17.5 thousand megawatt-hours per year, as a result of what the city will save around 1.8 million litas.
Company “Korelita” is a big client of our company. After the realization of the project about 500 workplaces will be retained. I feel sorry that some of the politicians of Kaunas City lack such attitude”, spoke the Director General of KHPP Antanas Pranculis on the attempts by the opposition of Kaunas Council to stop the project.
Upon the failure to renew the steam pipe in due time, “Korelita” would not receive steam at favourable prices and would hardly compete with its production on the world market. In case the company terminates its activities 500 people would loose their job, whereas the State and the city would loose taxes. Every year “Korelita” pays to the Social Insurance Fund Board around 4 million litas.
Renovation of the steam pipe will cost around 11 million litas. Part of the funds for project financing KHPP plans to obtain from EU Structural Funds; therefore, it required the approval of the Municipality. Now KHPP may apply for support to the Lithuanian Business Support Agency.
KHPP supplies the produced steam through its steam pipe to the company “Korelita”, as well as Petrašiūnai Power Plant. KHPP and Petrašiūnai Power Plant are connected by means of the technological steam connection. Costs of steam supply through the old pipeline are huge and make up to 20-30 %. Construction of the steam pipe had been started in 1964 already.
For more information:
Žilvaras Zinkevičius
Project manager
Public Relations Agency "Avenire"
Mob. +370 603 30255 +370 5 2608441
E-mail: zilvaras@avenire.lt