The project objective is rehabilitation and modernisation of the district heating infrastructure in Ternopil as well as the optimisation of operations. The main measures would be to install IHSs equipped with heat meters in the buildings, upgrade the technical equipment in the boiler houses, replace obsolete parts of the networks with modern technology pipes and introduce state-of-the-art technology. The main objective is to reduce the usage of energy. This will be done by changing the consumer behaviour through tariff increases combined with consumption-based billing made possible by metering, and through optimising and improving efficiency and reliability of heat and hot water supply.