New construction of a water intake from the Pivdenny Bug River (Nova Odesa, Mykolaiv Region) and a main water pipeline to provide water to the city of Mykolaiv in connection with the need to eliminate the negative consequences associated with the destruction of the Kakhovskaya Hydroelectric Power Plant, Mykolaiv Region, Section III


Sector
Municipal infrastructure and services
Stream
Restoration, development and modernization of centralized water supply and wastewater infrastructure, including the introduction of alternative energy sources
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State Single Project Pipeline
Implementation
Completion

General information

Description of the project

The new construction of a water intake from the Southern Bug River and a main water supply is a strategic infrastructure project aimed at providing stable quality drinking water to over 470,000 residents of the city of Mykolaiv and providing agricultural enterprises with 50,000 cubic meters of water per day.  The project is aimed at minimizing the consequences of the emergency situation associated with the destruction of the Kakhovka hydroelectric power station and ensuring the livelihoods of the population of southern Ukraine. The need to implement the project arose in connection with the destruction of the Kakhovka hydroelectric power station and overcoming the elimination of negative consequences.  

The purpose of the project

Main goal:

Improving the condition of infrastructure

Secondary goal:

Description of the purpose of the project and ways to achieve it

The project's goal is to eliminate the negative consequences associated with the destruction of the Kakhovka hydroelectric power station, ensure the livelihoods of the population of Ukraine, namely, provide over 470,000 residents of the city of Mykolaiv with high-quality drinking water by expanding access to basic life goods and water supply services, as well as provide agricultural enterprises with water over 50,000 cubic meters per day. The implementation of the project will improve sanitary and hygienic living conditions, reduce the social vulnerability of the population, reduce the costs of farms for imported drinking water and increase the overall standard of living in the region. The implementation of this project will provide a guaranteed water supply for the livelihoods of the city of Mykolaiv with minimal damage to the environment and thus allow, relatively quickly, to eliminate the humanitarian crisis caused by the destruction of the Kakhovka hydroelectric power station. The goal is expected to be achieved through the construction of a new water intake from the Southern Bug River (Nova Odesa, Mykolaiv region) and a main water supply.

Problems and solutions resulting from project implementation

Problem - in connection with the destruction of the Kakhovka hydroelectric power station, there is a problem of providing the city of Mykolaiv with high-quality drinking water. The solution to the problem is the new construction of a water intake from the Southern Bug River and a main water supply, which is aimed at solving urgent technical and infrastructure problems in the water supply system of the city of Mykolaiv. The implementation of the project will improve the living conditions of the population of the city of Mykolaiv, provide high-quality drinking water to more than 470,000 residents, and also solve the urgent needs for providing water supply to agricultural enterprises with more than 50,000 cubic meters of water per day.

Socio-economic context

Indicator

Value

Number of people who will use the service

470 thous. people

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Water supply and sanitation

Stream

Restoration, development and modernization of centralized water supply and wastewater infrastructure, including the introduction of alternative energy sources

Strategic document

State Strategy for Regional Development for 2021–2027

Task

Task 14 under the “Comfortable Communities” area of Operational Objective 1. Infrastructure resilient to security, social and economic challenges Availability of quality centralized water supply and wastewater services for different groups of citizens, taking into account the latest technologies and the needs of territorial communities

Project objectives

Indicator
Base value
Target value
Water supply to agricultural enterprises
0 m3
50000 m3
Providing the population of the city of Mykolaiv with drinking water
0 thous. people
470 thous. people

Demand for the service and its dynamics

Indicator
Year
Demand
Annual demand for services/infrastructure
1
470 thous. people
Economic justification

Alternative technical solutions

Technical Solution 1

New construction of a water intake from the Pivdenny Bug River (Nova Odesa, Mykolaiv Region) and a main water pipeline to provide water to the city of Mykolaiv in connection with the need to eliminate the negative consequences associated with the destruction of the Kakhovskaya Hydroelectric Power Plant, Mykolaiv Region, Section III

Technical Solution 2

Water intake No. 1 from the 40 km picket with water supply to existing WTPs

Total costs3'842'377'832 UAH20'734'444'800 UAH
  • For preparation
  • 17'174'583 UAH166'420'800 UAH
  • For implementation
  • 1'717'458'333 UAH16'642'080'000 UAH
  • For operation
  • 160'837'250 UAH1'429'632'000 UAH
  • For closing
  • 25'718'750 UAH2'496'312'000 UAH
    Average annual costs160'837'250 UAH1'429'632'000 UAH
    Project duration, incl.40 months408 months
  • Deadline for developing a FFS
  • 3 months12 months
  • Service life
  • 30 months360 months
  • Implementation period
  • 7 months36 months
    Target indicatorsDefined Defined
    Components of a technical solution
    To components
    0
    To components
    0

    Financial justification

    Total project budget

    Total preliminary budget3'842'377'832 UAH20'734'444'800 UAH
    Capital costs3'842'377'832 UAH20'734'444'800 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation34'349'166 UAH166'420'800 UAH
    For implementation3'434'916'666 UAH16'642'080'000 UAH
    For operation321'674'500 UAH1'429'632'000 UAH
    For closing51'437'500 UAH2'496'312'000 UAH

    Average project cost per service recipient

    Service Unitлюдина
    Service Unit Cost3'654 UAH

    Profitability of the project

    Is the project expected to generate income?

    ResponseNoNo

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    spi.projectFinancingMechanisms.subtitle

    spi.projectFinancingMechanisms.rowTitleYesNo

    Funding Sources

    Approved Funds2'583'856'700 UAH0 UAH
    Expected Funds2'874'098'000 UAH0 UAH
    Management Rationale

    Risk assessment

    Technical riskDefined
    Financial riskDefined
    Social riskDefined
    Market riskDefined
    Results of the feasibility analysis
    Economic Analysis
    Social benefits and costs
    Social benefits - stable water supply to more than 470 thousand residents of the city of Mykolaiv, improved health, reduced social tension, new jobs. Costs - temporary inconvenience during construction, maintenance costs
    Environmental benefits and costs
    Benefits - use of a safe water source, reduced pollution risks, modern treatment. Costs - impact on the coastal ecosystem during construction, costs for monitoring and reclamation
    Indirect benefits and costs
    Indirect benefits - economic development, investment attractiveness, the possibility of new industries. Costs - modernization of urban networks, possible tariff increases