Picture source: iStock_Ruslan Lytvyn
Eastern Europe
Ukraine: Uzhhorod Wastewater – Feasibility Study TC
Assignment location
Ukraine
Funding
European Bank for Reconstruction and Development (EBRD)
The “Project” envisaged (i) the construction of a new Wastewater Treatment Plant (“WWTP”), (ii) the modernisation of laboratory facilities for wastewater analysis, and (iii) the installation of solar panels, potentially with energy storage solutions. The Project aims to treat wastewater in accordance with relevant EU directives and local standards before it is discharged and/or reused. It was also a preliminary plan that the city would finance the expansion and modernisation of the sewage networks. The Project also stipulated the commercialisation of the relationship between the Company and the City by developing and implementing a Public Service Contract (“PSC”) to introduce service quality indicators and improve transparency and accountability. The proposed Priority Investment Programme (“PIP”) was assessed and confirmed as part of the technical due diligence.
The overall objective of the Assignment was to provide the Bank with the information, analysis and recommendations it needs to comprehensively assess, structure and approve the Project. A principal objective of the Assignment was to identify and justify an investment programme suitable for financing by the Bank. This proposed investment programme will then be further developed into a project design. Wherever possible, the Consultant shall utilise and build on previous studies, including detailed design documents for the new WWTP developed by the Company and relevant land rights documents, to ensure an efficient approach; a technical refresh of work already prepared for the city is expected.
Assessment of Technical Feasibility:
- Initial analysis of the existing WWTP revealed inefficiencies caused by diluted wastewater due to extensive groundwater infiltration and mismanagement of small streams.
- A revised evaluation of the WWTP capacity and modernisation potential was conducted, considering these findings.
Review of Sectoral and Market Context:
- Detailed analysis of the institutional, regulatory, and financial framework for the water and wastewater sector in Uzhhorod.
- Recommendations for adjustments to the regulatory framework to support sustainable operations.
Infrastructure Analysis and Priority Investment Plan:
- Comprehensive assessment of the sewer network highlighted critical areas requiring immediate rehabilitation to address groundwater infiltration.
- Development of a revised Priority Investment Plan prioritising sewer network rehabilitation over WWTP construction as an immediate step.
Economic and Financial Feasibility:
- Analysis of the financial viability of the municipal utility ("Vodokanal m. Uzhhoroda") and projections for cost recovery.
- Evaluation of tariff mechanisms and recommendations to improve revenue generation and affordability.
Environmental and Social Due Diligence:
- Assessment of environmental risks associated with untreated wastewater discharges into the Uzh River and its broader impact on the Danube Basin.
- Social inclusion analysis focused on addressing the needs of Internally Displaced Persons (IDPs) and other vulnerable groups.
Emission Benefits and Climate Resilience:
- Preliminary calculations of emission reductions (CO2, NOx, PM) expected from phased interventions.
- Consideration of climate change adaptation measures in proposed infrastructure designs.
Revised Project Approach:
- Strategic shift to prioritise immediate network rehabilitation to address foundational challenges before proceeding with advanced WWTP upgrades.
- This revised approach ensures alignment with local priorities and optimal use of available resources.
Picture sources: HYDROPHIL
