Introduction

Within the scope of their day-to-day tasks, the employees of City Development Department have analysed the planned investment including thermal modernisation and indoor overhaul of the library along with use of the adjacent area. The analysis was made prior to preparing the technical specification. In order to confirm the pre-assumed conditions related to the undertaking, a brief analytical report on financing possibilities was issued.
Objectives and target audience
Any activities related to preparation of the investment “Building overhaul – City Public Library in Katowice, affiliate no. 14, 20 Piastow Street” aim to maximum use of external financial support available for this task. Additional preparation work is possible to make a proposal at the preliminary stage of design works, regarding a demonstration installation of a gravel ground heat exchanger (education related to utilisation of local renewable energy resources in a technically and economically feasible way).

Financial Resources and Partners involved

The analysis carried out has proven that taking into account the financing model presented in the report, the forecasted savings for the city budget will reach ca 100000 PLN at the pre-assumed budget for thermal modernization at the level of 400,000 PLN (ca 25% savings). The entire overhaul budget reaches 670000 PLN.
The described analysis was made by an employee of the Hall within his regular office work.

Process

During verification of the planned scope of works related to the overhaul investment, employees of the City Development Department separated this investment into two tasks. Upon this step the “Analysis of financing possibilities related to thermal modernisation of the City Public Library building…” The report points out a technical feasible and economical option of installing equipment to use renewable energy resources.
Upon analysis of the problem a conclusion was drawn that more than one half of the pre-assumed budget will be used for thermal modernisation of the building. This implies the possibility to submit to the local institution, i.e. the Voivodeship Fund for Environmental Protection and Water Management in Katowice for a preference loan (up to 75% of qualified costs) with a possibility of partial mortgage (50% upon repayment of the first one half) and a partial grant (up to 50% of qualified costs) for manufacturing the equipment for use of renewable energy resource. The analysis presents potential savings as described above in the item 9.

Results

The Main result of a proper investment preparation and financial analysis is the definition of potential opportunities to acquire additional financing sources (in the form of preference loan with partial mortgage) for the investment (thermal modernisation of the object).
Additional argument that supports the idea of a full-scope modernisation is the opportunity to build a demonstration installation of a gravel ground heat exchanger (local education related to use of renewable energy resources in a feasible way) along with acquiring partial financing as a grant for this investment.

Critical Success Factors / Challenges

The success of the project related to use of external co-financing for investment to show the decision makers that there was a possibility to submit for external financial resources already at the stage of preparing the technical specification for the technical design. Correct preparation of such documentation guarantees all documents required by individual institutions that grant the co-financing.