The development objective of the District Heating Energy Efficiency Project for Uzbekistan is to improve the efficiency and quality of heating and hot water services in selected cities within the territory of the Recipient. The project will have two components. First component, modernization of district heating systems will finance energy efficiency investments in modernization of heat production and transportation and distribution systems, including installation of building-level IHS and heat meters for billing purpose, renovation of obsolete boilers and pipes for heat transportation. The project entails a shift to metering and consumption-based billing in the project areas. In addition, gas, electricity, and water supply systems will be upgraded, wherever it is needed for DH purposes. The component will also finance procurement of specialized maintenance equipment for the participating DHCs.There are five sub component, (i) Andijan City; (ii) Bukhara City; (iii) Chirchik City; (iv) Samarkand City and (v) Sergeli District; Second component, implementation support and capacity building will finance capacity-building and implementation support for the MHCS, the Project Coordination Unit (PCU) in the Kommunkhizmat Agency (KA), participating DHCs and their technical support teams. The component will include the following activities: (a) providing technical assistance for Project management, monitoring and supervision, Project financial audit, including Training and Operating Costs; (b) assessment of the profitability of the participating DHCs, develop recommendations to improve their financial performance, and strengthen their capacity, including through workshops for the participating DHCs and other shareholders; (c) development of institutional model for DH sector regulation and management; (d) designing and conducting social surveys of customer satisfaction