Modernising water and wastewater services in Lviv

The water and wastewater system in Ukraine is plagued by excess capacity – meaning, production is less than what is achievable or optimal – and requires a careful realignment of operations to adapt to new demands.

Furthermore, the system is old, maintenance has become burdensome and inefficiencies have led to overall high-energy consumption in water production and wastewater treatment. As a consequence, the cost of water and wastewater services in Ukraine is rising, outpacing income growth, while at the same time the quality of services is deteriorating.

The EBRD is providing a loan of up to €15 million to Lvivvodokanal, a communal water and wastewater utility operating in the city of Lviv, which will be used to install a wastewater biogas combined heat and power plant (CHP) and rehabilitate and modernise the current wastewater treatment infrastructure in the city.

The operation will be co-financed by a €5 million loan from Nordic Environment Finance Corporation (NEFCO) and by an investment grant of up to €7.5 million from the Eastern Europe Energy Efficiency and Environment Partnership (E5P).

Sector: MEI

EBRD investment: up to €15 million

Other benefits: Reduce greenhouse gas emissions; improved efficiency; improved hygiene; energy savings