Public Procurement 2014, updating CPV

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Claude Hutchinson
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1 Republic of Poland WP6 input to final report: Changes in Public Procurement 2014, updating CPV codes, ES (services) as PPP operation Jan Twardowski, FEWE CombinES Conference, Praha, November 27 This project is implemented through the CENTRAL EUROPE programme co financed by the ERDF.

2 EED and Energy Services in Poland 2014 EED not implemented, the beginning of the process, low level of ambitions Basic concepts EPC, ES in practice unknown Lack of legal definitions lack provisions in official documents One exception 3rd NEAAP of 2014 Radzionków project as a good practice, Whitecertificates: 2ndprocedure started 27.December December2013 finished 29th October 2014, Unfavorable economic and political conditions, Local low carbon economy plans and energy plans as a chance

3 PL ESCO market, needed changes Initialstage onesco market technical support is essential Provisions comprising incentives shall be introduced e.g.: EPC contract shall be accepted as a municipality own contribution (participation) in the financial engineering / breakdown within the application for the subsidy grant support, Implementing investment withepc/ PPP shall beawarded withgrants, higher guarantees or volume of EPC contract higher intensity volume of the subsidy. Investments made without EPC/guaranteed part nor energy management may receive the support mainly via returnable, financial instruments Recommendation of amending the CPV (common procurement vocabulary), shall be issued.

4 Best practices, conclusions & questions Comprehensive Renovation of educational buildings of the Municipality Radzionków in public private partnership to achieve energy savings Comprehensive Renovation of public buildings of the Municipality Karczew in public private partnership co financed with Green Investment Scheme program Technical assistance of MIR (Ministry of Infrastructure and Development) )f for EE investment in PPP (EE sector) Setting legal definition of hybrid projects in Polish law system Can ESCO become an applicant or beneficiary?

5 Adaptation EPC into PPP operation Lack legal definition of EPC/ES has turned ESCO related provisions into PPP, EPC and PPP long term contracts Energy savings may be contracted and guaranteed Flexibility of PPP, concept of sharing the risk allows unique solutions Well designed PPP s contract not counted as public debt Favorable provisions in EU law for PPP operations

PPP-Radzionków 4 schools & kindergarten Thermal insulation of buildings.

investment EUR 2Mio (to be partially paid from the future costs/energy

) Financed by the building owner ca50%- c.a.50 (1Mio from savings).

6 PPP-Radzionków 4 schools & kindergarten Thermal insulation of buildings. Windows& doors replacement. Exchange heating sources. Modernization of lighting. EnPC like agreement as PPP contract with energy guarantees Total investment EUR 2Mio (to be partially paid from the future costs/energy savings. Without any subsidies.) Financed by the building owner ca50%- c.a.50 (1Mio from savings). Maintenance building energy management system for 10 years ca EUR per year, paid in quarterly installments, 2013 Guaranteed 54,03 % heating 58% savings ,77%electricity y 42%

PPP: Karczew 9+1 subsidized (GIS1) Thermal insulation of buildings. Including roof renovation Windows& doors replacement.

g EnPC like agreement as PPP contract with energy guarantees Total investment EUR1,9Mio+0,4 (to be partially paid from the

Subsidized GIS1-Green Investment Scheme 30% of eligible costs EUR 1Mio non eligible ibl contribution i 0,2Mio Financed by EPC

7 PPP: Karczew 9+1 subsidized (GIS1) Thermal insulation of buildings. Including roof renovation Windows& doors replacement. Exchange of heating sources. Modernization of lighting. g EnPC like agreement as PPP contract with energy guarantees Total investment EUR1,9Mio+0,4 (to be partially paid from the future costs/energy savings. Subsidized GIS1-Green Investment Scheme 30% of eligible costs EUR 1Mio non eligible ibl contribution i 0,2Mio Financed by EPC provider +400k, repaid by monthly payments 6000 Maintenance building energy management system for 14 years ca. 0,2 EUR per year, paid in monthly instalments Improving the functionality and appearance of buildings (9 schools and 1 health center) guaranteed savings 56 % heating.. 20,9% electricity

8 THANK YOU CombinES Team in Poland, Jan Twardowski, Szymon Liszka, Grażyna Michalik Michał ł Pyka, Pk Łukasz Rajek,

GOOD PRACTICE IN FINANCING THE RENOVATION OF PUBLIC AND RESIDENTAL BUILDINGS

GOOD PRACTICE IN FINANCING THE RENOVATION OF PUBLIC AND RESIDENTAL BUILDINGS CONTENT: Introduction of SEVEn 1. List of financial instruments 1. Own and banking resources 2. Subsidy schemes 3. Energy services