The project was one of the first attempts to introduce concession as an alternative to communal operator of Lviv municipal heating system. Project start: September 2003 Project finish: September 2005 The objective of the project was to provide technical assistance to Lviv Administration in realization of municipal services reform on the basis of concession. Euro-Ukraina Consulting, in association with Egis Bceom International, acting as a Consultant, was in charge of a pilot project concerning Lviv municipal heating system reorganization. The first stage of the project included thorough Feasibility study of the municipal heating system which was performed by the French and Ukrainian economists and engineers. At the second stage of the project, recommendations have been prepared as to the institutional and financial structure of the possible concession project. The third stage included a draft concession contract preparation. At the last stage of the project, recommendations have been introduced for other regions utilities and municipalities to promote regional development.