Municipal water management project of Chernivtsi city


Sector
Municipal infrastructure and services
Stream
Restoration, development and modernization of centralized water supply and wastewater infrastructure, including the introduction of alternative energy sources
Maturity level
0
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State level of SPP
Implementation
Completion

General information

Description of the project

Current project consisting of three components:

  1. Chernivtsi Municipal Water Management Project, Stage 1: the project provides for financing construction works, supplies and installation of equipment, pre-operational and commissioning works (if any): - reconstruction and modernization of the surface water intake "Mytkiv"; - reconstruction and modernization of the water treatment plant "Vikno"; - replacement of pipeline sections of the main water supply from "Shubranets" to the Prut River; - replacement of pipeline sections of the main pipeline after the Prut River "Stara" pipe, landslide zone; - reconstruction and modernization of the underground water intake "Magala"; - reconstruction and improvement of the underground water intake "Bila"; - reconstruction of "Rogizna" + improvement of the underground water intake "Lenkivtsi 1"; - reconstruction of pumping stations; - reconstruction of "Chapaev" tanks; - pressure zoning; - replacement of pipes in the distribution network pipelines and in landslide areas; - purchase of leak detection equipment; - purchase of pipe repair equipment; - purchase and installation of house meters; - purchase and installation of data transmitters and a communication system for the SCADA system, modernization of the SCADA system; - reconstruction of the "Quartz" water intake and relevant water treatment facilities *); - conversion of chlorination systems to hypochlorite; - purchase and installation of modern equipment for a biochemical laboratory.
  2. Chernivtsi Municipal Water Management Project, Stage 2:The component provides for investment measures financed by the Loan: Investment 1: Restoration of approximately 7 km of emergency main water supply from the water pumping station of the 3rd lift "Shubranets" to the clean water tanks "Popova"; Investment 2: Restoration of emergency sections of the water supply network together with the most worn-out networks of the drainage system, which are located on some streets (27.7 km of water supply networks and approximately 22.5 km of drainage networks); Investment 3: Installation of pressure regulation equipment in the water supply network of the city of Chernivtsi. b. Advisory Services: Assistance to the OPU and the Chernivtsi City Council in planning and implementing the measures specified in paragraph 2.1.2 (provided by the Implementation Consultant), c. Accompanying activities (Expert Services) in the interests of the OPU will be financed from the Grant (provided by the Accompanying Activities Consultant).
  3. Strengthening local self-government in Ukraine (Chernivtsi): the component is designed to ensure high-quality wastewater treatment, prevent pollution of the transboundary Prut River with raw sediment, ensure environmental safety and improve the quality of life of over 50 thousand people near the OSC, and the reliability and quality of centralized water supply services for over 250 thousand residents of Chernivtsi. 

The purpose of the project

Main Goal:

Improving the condition of infrastructure

Secondary Goal:

Improving the quality of services

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

The water supply of the city of Chernivtsi is carried out from two sources, namely: surface water intake on the Dniester River (85%) - the Dniester-Chernivtsi water pipeline and a system of underground water intakes equipped in the Prut River basin (15%) - the Rogizna water intake in a complex with the Lenkivtsi-1 and Ocheret water intakes, the Bila water intake, the Magala water intake. The municipal enterprise Chernivtsi Vodokanal has 9 water supply stations and 1 water treatment plant, the installed production capacity of which is 90 tons of cubic meters per day. The water supply and distribution system consists of 425 km of water pipes, including 131.0 km of large-diameter water pipes. The diameter of the water supply networks operated by the enterprise ranges from 80 mm to 1400 mm. In recent years, there has been an increase in water losses and a decrease in the volume of its sale. This is due, on the one hand, to the practical absence of industrial water consumers and increased costs for maintaining facilities, technological processes for preparing water and supplying it to consumers, in particular, payments for used electricity, purchase of reagents, materials, etc. On the other hand, to the aging of facilities, equipment and, especially, pipelines and increased unaccounted water costs. One of the most costly sections of the Chernivtsi Water Supply Company is currently the Dniester-Chernivtsi water pipeline, which is the main source of water supply in Chernivtsi and provides more than 85% of the city's daily water needs. Preservation of the existing technological regulations for the operation of the water pipeline equipment for preparing drinking water and ensuring round-the-clock water supply in Chernivtsi requires constant operation of currently outdated equipment, which was installed taking into account the provision of water to the city's industry in sufficient quantities for its work, namely with the prospect of increasing the water supply to the city to 200,000 cubic meters per day. Now, when water needs have almost halved, and the installed equipment has not changed, problems have begun to arise related to filling large-diameter pipes and transporting excess water. The selection of pumping equipment carried out in the 1980s does not correspond to the hydraulic calculation (the working pressure in the network after the pumping equipment is 132-134 m above sea level, and the installed equipment is designed for 180-197 m above sea level). Therefore, for the KP "Chernivtsi Vodokanal" the issues of reducing electricity consumption and reducing water losses and costs remain relevant, the solution of which is possible thanks to the use of new, more advanced methods of water preparation, purification and transportation. Sewage treatment plants (STPs) in Chernivtsi were built in the 1970s, and currently have significant wear and tear of the main technological equipment. To ensure high-quality wastewater treatment, prevent pollution of the transboundary Prut River with raw sediment, ensure environmental safety and improve the quality of life of over 50 thousand people near the central water supply system, and ensure the reliability and quality of centralized water supply services for over 250 thousand residents of Chernivtsi, reconstruction is necessary.

Problems and solutions resulting from project implementation

Significant deterioration of water supply networks in the city of Chernivtsi: the implementation of the project will allow to increase the reliability and quality of centralized water supply services for over 250 thousand residents of Chernivtsi; - reduce emergency repair costs by updating equipment and reducing the use of consumables; - reduce energy consumption and water losses and expenses; - improve water quality; - improve the budgetary and functional capabilities of the Chernivtsi Water Supply and Sewage Enterprise. Outdated treatment facilities: reconstruction of treatment facilities will allow to ensure high-quality wastewater treatment, prevent pollution of the transboundary Prut River with raw sediment, ensure environmental safety and improve the quality of life of over 50 thousand people near the water supply and sewerage system.

Socio-economic context

Indicator

Value

Number of IDP users

42 thous. people

Number of people who will use the service

250 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

Project objectives were not specified by the initiator

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

фактичні дані КП "Чернівціводоканал"
[Response was provided in the Preliminary Investment Feasibility Study]

Has data from external sources been used in the demand assessment?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the demand forecast take into account the latest demographic and economic forecasts?

No
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
100 %
Economic justification

Analysis of the project's impact on ecology and climate change

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Climate change adaptation
[Response was provided in the Preliminary Investment Feasibility Study]
Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Sustainable use and protection of water and marine resources
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]
Climate change mitigation
[Response was provided in the Preliminary Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Does the planned activity have a potential positive contribution to achieving climate or environmental objectives?

Protecting and restoring biodiversity and ecosystems
[Response was provided in the Investment Feasibility Study]

Is the proposed project expected to significantly harm any of the following climate or environmental objectives?

None of the options are applicable

Have the greenhouse gas emissions or emission reductions (Scope 1-2) associated with the project been calculated for a typical year and the entire project period?

No
[Response was provided in the Investment Feasibility Study]

Does the project require an environmental impact assessment (EIA) in accordance with the Law of Ukraine "On Environmental Impact Assessment"?

Yes, not yet conducted
[Response was provided in the Investment Feasibility Study]

Project sustainability and inclusivity

Identify potential gender risks of the project and indicate possible ways to overcome them:

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project provide for improving women's access to services?

Not applicable to my project
[Response was provided in the Preliminary Investment Feasibility Study]

Are civil society organizations representing women and vulnerable groups included in the consultation process?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Were consultations held with representatives of target groups to take into account gender equality issues in the project?

None of the options are applicable

Have the gender risks and social impacts of the project been assessed?

None of the options are applicable

Are there management and institutional mechanisms in place to ensure gender equality?

None of the options are applicable

Documents

Name
Date
Chernivtsi agreement_compressed_compressed (1).pdf
07.08.2025
15:06:53 UTC

Alternative technical solutions

Technical Solution 1

Municipal water management project of Chernivtsi city

Technical Solution 2

New construction of treatment plants and sewerage networks

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)3'187'800'001 UAH20'050'000'000 UAH
For preparation1 UAH50'000'000 UAH
For implementation3'187'800'000 UAH20'000'000'000 UAH
Project operation and closure cost1'002'000'000 UAH2'000'000'030 UAH
For operation2'000'000 UAH30 UAH
For closing1'000'000'000 UAH2'000'000'000 UAH
Average annual costs2'000'000 UAH0 UAH
Project duration, incl.25 months120 months
Deadline for developing a FFS1 month24 months
Implementation period24 months96 months
Service life600 months600 months
Target indicatorsDefined Defined
Technical Solution Status
Active

[The technical approach was selected for further detailed analysis or implementation.]

Rejected

[The technical approach was not selected for further detailed analysis or implementation.]

Components of a technical solution
To components
0
To components
0

Commercial Justification

Supplier and contractor market assessment

Is the project likely to attract a sufficient number of bidders to ensure real competition that will encourage bidders to think innovatively and maximize the quality of their proposals?
Yes

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project of interest to small and medium-sized enterprises?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Will the project involve national or international suppliers and contractors?
Yes, both national and international

[Response was provided in the Preliminary Investment Feasibility Study]

Has an analysis of available procurement options been conducted for the technical solution?
No

[Response was provided in the Preliminary Investment Feasibility Study]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
проект діючий, усі закуплі проведено

[Response was provided in the Investment Feasibility Study]

What approaches are planned to be used to ensure transparency, competition, and efficiency in the procurement process?
проект діючий, усі закуплі проведено

[Response was provided in the Investment Feasibility Study]

What types of procurement procedures are envisaged by the project (open tender, negotiated procedure, competitive dialogue, etc.)?
Other

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
проект діючий, усі закуплі проведено

[Response was provided in the Investment Feasibility Study]

Potential market participants
проект діючий на етапі завершення

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
проект діючий на етапі завершення

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget4'189'800'001 UAH22'050'000'030 UAH
Project cost (preparation and implementation)3'187'800'001 UAH20'050'000'000 UAH
For preparation1 UAH50'000'000 UAH
For implementation3'187'800'000 UAH20'000'000'000 UAH
Project operation and closure cost1'002'000'000 UAH2'000'000'030 UAH
For operation2'000'000 UAH30 UAH
For closing1'000'000'000 UAH2'000'000'000 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Preliminary Investment Feasibility Study]
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
No
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service Unitвартість одного метра кубічного води
Service Unit Cost47 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?No

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
No – analysis not performed

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds3'661'974'490 UAH0 UAH
Expected Funds5'773'298'216 UAH0 UAH

Public-private partnership

Has a qualitative and quantitative assessment of the project's suitability for implementation through a PPP mechanism been conducted?
No, no assessment was conducted.

[Response was provided in the Preliminary Investment Feasibility Study]

Are there, after conducting an appropriate study, private investors interested in the possibility of implementing the project in the PPP format?
No

[Response was provided in the Preliminary Investment Feasibility Study]

Management Rationale

Team competencies

Determine which competencies/expertise required for successful project preparation and implementation can be provided by the project initiator's own project team (without involving external advisors)
Strategic justification - analysis of the strategic feasibility of the project

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - economic analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Economic justification - social and gender analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - public consultations

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of available procurement options

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - SDG compliance analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - demand analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Business case - analysis of the market environment

[Response was provided in the Preliminary Investment Feasibility Study]

Does the team have experience implementing similar projects?
Yes, successfully implemented 1 or more similar projects

[Response was provided in the Preliminary Investment Feasibility Study]

Identify which competencies/expertise required for successful project preparation and implementation need to be strengthened by engaging independent experts or consultants
None of the options are applicable
Is there an understanding of where to find relevant experts and consultants?
Yes, negotiations are already underway.

[Response was provided in the Preliminary Investment Feasibility Study]

Is the project management structure defined: working group, chair, project team?
Yes

[Response was provided in the Investment Feasibility Study]

What categories of experts and consultants have already been involved at the project preparation stage?
Specialists in interaction with international financial organizations (IFOs)

[Response was provided in the Investment Feasibility Study]

Environmental experts

[Response was provided in the Investment Feasibility Study]

Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Legal consultants

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Management experts / project managers

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
No

[Response was provided in the Investment Feasibility Study]

Risk assessment

Technical riskDefinedUndefined
Other riskDefinedUndefined

Organizational events

ResponseDefinedUndefined
Results of the feasibility analysis
Project Preparation Program Engagement and Funding Needs

Is there ongoing cooperation or support within the framework of international technical assistance (ITA) or from other donor or government agencies?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Does the project require preparation assistance from Project Preparation Programs (PPF)?

None of the options are applicable

Does the project require additional preparation assistance from Project Preparation Facilities (PPF)?

None of the options are applicable
Need for financing

Does the project require additional funding for preparation?

No
[Response was provided in the Preliminary Investment Feasibility Study]

Project Approval History

DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
14/08/2025SP-N-140825-B3A97956State SPInvestment Feasibility StudyInclude--
01/10/2025SPP-N-011025-799A1CA6State SPPInvestment Feasibility StudyInclude-0