Operations Phase

The first challenge that the project faced was the transition of staff who had previously been employed by ZHH prior to the transfer of responsibilities to the Project Company. The Project Company addressed the concerns of these staff in a number of ways, including by carrying out training and introducing a performance-based incentive scheme. This is described in further detail under the heading 'Key Events' below.

The beginning of the operations phase was successful, with the Project Company able to provide central heating for a longer period of time than what was available in preceding years, and the number of user complaints regarding heat supply dropping by 80%. The indoor average temperature in the district increased from 19.3°C to 21.4°C, and the percentage of users who paid their bills increased from 80% to 93%. The area covered by the central heating service has increased by 20% due to the construction of the additional boilers, and the Project Company is expected to meet its 2020 coverage goal. After one heating operation period in 2015-2016, coal, electricity and water consumption were 80%, 50% and 70% respectively of the equivalent consumption figures over the same period in 2014-2015. It is estimated that 20% of the Project Company's revenue increase is due to cost savings as a result of reduced energy consumption.