The objective of the Energy Efficiency Project is to improve energy efficiency in heat and power generation in selected towns in Belarus. There are three components to the project. The first component is the conversion of existing heat-only-boiler plants to combined heat and power plants. The project will convert existing heat-only-boiler plants to combined heat and power plants at six sites. All plants will use natural gas as the main fuel. The largest plant will be in Borisov with a combined heat and power (CHP) unit with an electricity capacity of about 65 MW, followed by the Mogilev combined cycle CHP plant of 15.5 MW of electricity capacity. The introduction of combined heat and power generation will improve efficiency of the plants and thus reduce gas consumption. The second component is the design and supervision consultancy. The design and supervision consultancy will be performed by Belarusian design institutes and financed by the Belarusian side. In addition, the component will also finance construction management and investment monitoring. Finally, the third component is the project Implementation and management. A Project Management Unit (PMU) will carry out the procurement, contract supervision, and financial management of the project including auditing and other fiduciary requirements.