Improved Heat Sector Management and Delivery of Heat Supply Program in Armenia

Contract Award Number: 111-C-00-05-00040-00

Program Title: Improved Heat Sector Management and Delivery of Heat Supply Program

Program Scope: The Goal is to provide assistance to the Republic of Armenia in implementing the GOAM heat strategy, in particular to demonstrate the full range of heat supply alternatives, e.g., decentralized building and district co-generation, heat-only boilers for apartment blocks, and conversion to direct natural gas, that will be required in addition to central heating rehabilitation and modernization.
USAID support will focus on implementing various alternatives to promote the developing heat market in its ability to realize least cost solutions that enhance effective management and reduce environmental costs. This Program will involve close collaboration with other donors who will be implementing substantial infrastructure investments and will work to enhance the commercial efficiency of heat suppliers led by the energy service companies who are developing a competitive market for efficient heating. In combination with strengthened commercial operations for heat companies, the program will active engage to increase public awareness of the benefits from enhanced efficiency and of the need to pay for enhanced quality of service through realistic tariffs. The Program’s focus will be based in part on the heat sector’s continued need to improve transparency and commercial operations in order both to reduce the opportunities for corruption and to improve the quality of service delivered to customers. It is also motivated by the contribution more efficient heat supply will make to increase Armenia’s energy security by managing and using scarce resources with greater efficiency and in an environmentally sustainable way. Improving economic efficiency and ensuring sustainable heat supply also provides an essential element to improve the quality of life for all Armenians.

Duration: base period of four years with an option for one additional year