The World Bank and the European Bank for Reconstruction and Development are concerned in co-participation in funding a project for utilising geothermal ground water in heating premises in Žiar nad Hronom. The project implementation costs will be running at U.S.$18 million, of which the two bank institutions would provide for a non-specified part in the form of credit.

In heating residential houses, production and commercial infrastructure of Žiar nad Hronom, 72 thousand tonnes of coal are consumed annually to generate 810 TJ heat. By implementing the new project there will be over 100 TJ savings, with a new more efficient distribution hot water network and 39 reconstructed heat exchange stations making for effective consumption of heat. The current heat plant will only serve as an auxiliary source under extremely chilly weather conditions with an expected coal consumption of at most 9 thousand tonnes. In addition to cost implications, the geothermal water heating will make a significant contribution through environmental impact. Ecologists calculated that by shutting down the solid fuel burning heat plant the air burden will be reduced by 59 thousand tonnes of carbone dioxide, 290 tonnes of sulphur dioxide, 48 tonnes of nitrogen oxides, 230 tonnes of dust and nearly 12 thousand tonnes of ash.

The implementor of the project scheduled to complete in 2001 is a subsidiary of the joint-stock company Závod SNP - Geothermal, s.r.o., Žiar nad Hronom. An international tender was invited for making a drill, which five companies from Germany, Austria, Poland and the Czech Republic showed interest in. In the final stage thereof, Polish and Czech bidders competed with the Slovak joint-stock company Nafta Gbely. The latter, whose bid was assessed by experts as most effective, won the tender.

Preparatory work kicked off toward the end of last year and Jan. 5 this year it culminated with a launching conference and starting a first drill. Aimed at geothermal water sampling in the depth of some 2,500 meters, a trial drill at Žiarska kotlina - site Vartička will last roughly till April 9. The drilling set of Nafta Gbely erected on December 21 last year is technically capable of reaching the depth 2,800 meter, just in case that the geothermal water level is lower than the expected 2,500 meters. In all Nafta Gbely staffs will carry out two production and two reinjenction drills. Whether anticipated costs totaling 18 million Sk is enough to fund related works or the original budget modifications are be necessary will depend on the yield of ground sources and water temperature.