In order to start using economically effective biomass in production of heat in boiler houses, in the year 2004 United Nations Development Program (UNDP) in cooperation with Environmental investment fund and "Vides projekti" State Ltd have organized a competition for boiler house reconstruction in municipalities. The financing of the project included donation from UNDP and loan from the Environmental investment fund. In the beginning the total UNDP financing was USD 100 000, however due to big responsiveness of municipalities it has been increased uptill USD 155 000. The donation from the UNDP has covered up to 20% of total project expenses.
In total 14 project applications have been received from municipalities for the sum of 1.4 million lats, from which 8 projects were chosen for implementation.
- Aglona municipality,
- Pelēči municipality,
- Lielplatone municipality,
- Katvari municipality,
- Dagda city,
- Lielauce municipality,
- Viļaka city,
- Šķaune municipality.
After the project implementation in all the municipalities during heat production in boiler houses biomass is used instead of coal or heavy oil.
Environmental investment fund:
- Provided consultations to the representatives of municipalities about the possibilities of financing,
- Summarized applications and performed their primary evaluation and analysis in accordance with the approved evaluation criteria,
- Evaluated technical, financial and prospective environmental improvement of implemented projects,
- Supported municipalities during the project implementation, e.g. procurement process and process of reconstruction,
- Performed financial and environmental improvement monitoring of the implemented project during the loan repayment period.