Reconstruction of the water supply and drainage system of the village of Ratne


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
82
Project Status
Preliminary Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Investment Feasibility Study
Implementation
Completion

General information

Description of the project

The project "Reconstruction of the water supply and wastewater system of the village of Ratne" provides for a comprehensive renovation and modernization of engineering networks in order to ensure stable, safe and high-quality provision of water supply and wastewater services to the population. The implementation of the project includes the replacement of worn-out networks, modernization of pumping and treatment equipment, reduction of water losses and increase of energy efficiency of the system. As a result, the project will contribute to improving the environmental situation, improving the quality of life of residents and sustainable development of the village.

The purpose of the project

Main Goal:

Improving the condition of infrastructure

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

The goal of the project is to ensure reliable, uninterrupted, and high-quality water supply and sanitation in the village of Ratne by reconstructing and modernizing existing systems, reducing water losses, increasing energy efficiency, and improving environmental safety, which will contribute to improving the quality of life of the population and sustainable development of the community.

Problems and solutions resulting from project implementation

The implementation of the project is aimed at solving a complex of interrelated problems in the water supply and drainage of the village of Ratne, which have become critical today. The key problem is significant physical and moral wear and tear of engineering networks and equipment, which leads to frequent accidents, water leaks and service interruptions. The urgency of this problem is due to the long-term operation of networks beyond the regulatory period and the lack of system modernization for many years. If it is not resolved, a further increase in the accident rate, increased water losses, deterioration of the quality of water supply and increased costs for emergency repairs is possible. The second significant problem is the inconsistency of existing capacities and technologies with modern sanitary, environmental and energy-efficient requirements. Outdated pumping and treatment equipment operates with a high level of energy consumption and does not provide the proper quality of wastewater treatment. In the absence of reconstruction, this creates risks of soil and water pollution, deterioration of the environmental situation and possible violations of environmental legislation. Also relevant is the problem of incomplete coverage of the population by centralized water supply and sewage services. Some residents are forced to use individual water sources and local sewage systems, which do not always meet sanitary standards. If left unresolved, this may lead to a deterioration in the quality of drinking water, increased risks to public health, and social tension in the community. A separate problem is high operating costs and limited opportunities for effective system management due to the lack of modern accounting, automation, and monitoring tools. This complicates the prompt response to accidents and does not allow optimizing the costs of the water supply and sewage enterprise. Further delays in updating the system may lead to financial instability of the utility and a decrease in the quality of services. As a result of the project, a significant increase in the reliability and continuity of water supply and sewage, a decrease in the accident rate and water losses, and an improvement in the quality of drinking water and the level of wastewater treatment are expected. The project will increase energy efficiency, reduce operating costs, expand the coverage of the population with centralized services, and improve the ecological condition of the territory. In the long term, this will contribute to improving the quality of life of residents, sustainable development of the community, and the creation of a reliable engineering foundation for the further socio-economic development of the village of Ratne.

Socio-economic context

Indicator

Value

Number of people who will use the service

9.21 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

Регіональна стратегія розвитку

Task

3.2. Water resources

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?

Public hearings
[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
1500 human
Annual demand for services/infrastructure
2
2000 human
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

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?

The project will create jobs available to women (temporarily or permanently)
[Response was provided in the Preliminary Investment Feasibility Study]
The project will improve women's access to safe water, food, and medical services
[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]

Alternative technical solutions

Technical Solution 1

Reconstruction of the water supply and drainage system of the village of Ratne

Technical Solution 2

Major repairs of individual sections of networks without comprehensive reconstruction

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)151'500'000 UAH20'500'000 UAH
For preparation1'500'000 UAH500'000 UAH
For implementation150'000'000 UAH20'000'000 UAH
Project operation and closure cost2'650'000 UAH2'600'000 UAH
For operation2'500'000 UAH2'500'000 UAH
For closing150'000 UAH100'000 UAH
Average annual costs2'500'000 UAH2'459'000 UAH
Project duration, incl.44 months36 months
Deadline for developing a FFS8 months12 months
Implementation period36 months24 months
Service life240 months120 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.]

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?
Yes

[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]

Financial justification

Total project budget

Total preliminary budget154'150'000 UAH23'100'000 UAH
Project cost (preparation and implementation)151'500'000 UAH20'500'000 UAH
For preparation1'500'000 UAH500'000 UAH
For implementation150'000'000 UAH20'000'000 UAH
Project operation and closure cost2'650'000 UAH2'600'000 UAH
For operation2'500'000 UAH2'500'000 UAH
For closing150'000 UAH100'000 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]

Average project cost per service recipient

Service UnitПостачання води
Service Unit Cost30'000 UAH

Profitability of the project

Is the project expected to generate income?YesNo
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

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]

Project management - communication with stakeholders

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - risk management

[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]

Project management - legal support

[Response was provided in the Preliminary Investment Feasibility Study]

Strategic rationale - SDG compliance analysis

[Response was provided in the Preliminary Investment Feasibility Study]

Project management - working with international financial organizations (IFOs)

[Response was provided in the Preliminary Investment Feasibility Study]

Financial analysis - financial 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?
No, this is the first project of its kind.

[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
Economic feasibility study - technical expertise

[Response was provided in the Preliminary Investment Feasibility Study]

Is there an understanding of where to find relevant experts and consultants?
Partially, we are considering options

[Response was provided in the Preliminary Investment Feasibility Study]

Risk assessment

Technical riskDefinedUndefined
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
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
17/01/2026SP-L-170126-766816E4Community SPPreliminary Investment Feasibility StudyIncludeInclude the project in the sectoral portfolio-
20/01/2026SPP-L-200126-AAB050CECommunity SPPPreliminary Investment Feasibility StudyInclude-82