Reconstruction of power supply systems using alternative energy sources (solar energy) at the facilities of the Municipal Enterprise "Vodokanal" of Zaporizhia (Phase I)

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
Local level of SP
Implementation
Completion

General information

Description of the project

The project is aimed at increasing the energy efficiency and reliability of the water supply and drainage systems of the city of Zaporizhzhia by installing distributed solar power plants and energy storage systems at the pumping stations of the KP "Vodokanal".

It is also planned to implement a system for monitoring and analytics of the operation of solar power plants, which ensures continuous collection, processing and visualization of data on the volume of generation, electricity consumption, the level of self-consumption, the operation of batteries and modes of interaction with electrical networks.

The monitoring system is planned taking into account the possibility of scaling and phased connection of new generation facilities, including other solar power plants and energy storage systems, without the need to replace the basic software and hardware complex, which meets the principles of long-term planning and effective use of public investments.

The implementation of the project will ensure the uninterrupted functioning of critical infrastructure during peak loads and emergencies power outages, will reduce electricity consumption from the network and the company's costs, and will also allow for effective balancing of energy consumption.

The purpose of the project

Main Goal:

Introducing innovations and energy-efficient solutions

Secondary Goal:

Increasing compliance with modern standards, Improving the condition of infrastructure, Поява нових виробничих потужностей

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

The project's goal is to increase the energy efficiency, reliability and sustainability of the water supply and wastewater disposal facilities of the Vodokanal KP by implementing modern technologies for generating and storing electricity. To achieve this, it is planned to install distributed solar power plants and energy storage systems at the enterprise's facilities with an energy monitoring system. Additionally, the project envisages the installation of inverters of increased nominal power, which will provide the technical possibility of further retrofitting the systems with batteries and gradually increasing the total installed capacity of the batteries without replacing the main inverter equipment. This will allow partially replacing electricity consumption from the network, providing backup power in the event of accidents or blackouts, as well as balancing electricity consumption. The existing gap between the current and target state is the high dependence of critical water supply facilities on centralized electricity supply, which creates risks of water supply interruptions during emergencies or energy shortages. The implementation of the project will eliminate these risks, reduce electricity costs, and increase the level of energy autonomy and security of the city's vital infrastructure.

Problems and solutions resulting from project implementation

The main problems that the project solves are the high energy dependence of the facilities of the Vodokanal enterprise on centralized power supply and the risk of stopping water supply systems in the event of accidents, blackouts or peak loads. Due to the lack of its own sources of generation and energy storage, the enterprise is unable to ensure stable operation of critical infrastructure during network outages, which directly threatens the uninterrupted water supply of hundreds of thousands of city residents. In the current conditions of war and energy crisis, ensuring uninterrupted water supply is critically important for the city's life. If this problem is not resolved, long-term interruptions in water supply are possible, an increase in the financial burden on the local budget and increased social tension among the population. The implementation of the project will ensure uninterrupted operation of the enterprise's facilities even during network failures, reduce electricity consumption from centralized sources, reduce operating costs and CO2 emissions, increase the energy autonomy of the enterprise and the city's overall resilience to crisis situations. As a result, the community will receive a stable, safe and energy-efficient water supply.

Socio-economic context

Indicator

Value

Number of people who will use the service

383 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

Стратегія розвитку територіальної громади

Task

A.1.3. Safe water supply and sanitation

Project objectives

Indicator
Base value
Target value
Installation of alternative energy sources - solar power plants
0 kW
1570 kW

Project Sustainable Development Goals

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?

Transition to a circular economy
[Response was provided in the Preliminary Investment Feasibility Study]
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?

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

Yes
[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?

No consultations were held with target groups.
[Response was provided in the Investment Feasibility Study]

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

All possible positive impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]
All possible negative impacts of the project on women, men or other gender groups have been identified
[Response was provided in the Investment Feasibility Study]

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

Not provided for by the project
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
Economic analysis_SES.doc
24.02.2026
11:58:30 UTC

Alternative technical solutions

Technical Solution 1

Reconstruction of energy supply systems using alternative energy sources (solar energy) Phase I

Technical Solution 2

Increasing backup power supply capacity by installing diesel generators

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)98'093'051 UAH25'137'001 UAH
For preparation1'656'126 UAH1 UAH
For implementation96'436'925 UAH25'137'000 UAH
Project operation and closure cost20'606'652 UAH82'810'001 UAH
For operation20'606'651 UAH82'810'000 UAH
For closing1 UAH1 UAH
Average annual costs824'000 UAH0 UAH
Project duration, incl.9 months5 months
Deadline for developing a FFS3 months3 months
Implementation period6 months2 months
Service life300 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.]

Components of a technical solution
To components
7
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?
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]

What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Закупівлі плануються проводити міжнародною організацією, у разі проведення закупівлі власними силами -планується через ProZorro

[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?
ProZorro

[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.)?
Open competitive bidding

[Response was provided in the Investment Feasibility Study]

Direct negotiation procedures

[Response was provided in the Investment Feasibility Study]

Pre-market engagement
огляд відкритих тендерів, консультації з експертами, аналіз аналогічних проєктів

[Response was provided in the Investment Feasibility Study]

Potential market participants
проведених консультацій з представниками ринку не проводилося.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
-

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget118'699'703 UAH107'947'002 UAH
Project cost (preparation and implementation)98'093'051 UAH25'137'001 UAH
For preparation1'656'126 UAH1 UAH
For implementation96'436'925 UAH25'137'000 UAH
Project operation and closure cost20'606'652 UAH82'810'001 UAH
For operation20'606'651 UAH82'810'000 UAH
For closing1 UAH1 UAH
Were the methodological recommendations approved by the Ministry of Finance of Ukraine applied when calculating the indicative budget?
Yes
[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?
Yes
[Response was provided in the Investment Feasibility Study]

Average project cost per service recipient

Service Unitвартість на одного споживача
Service Unit Cost170 UAH

Profitability of the project

Is the project expected to generate income?NoNo
Is the project self-sustaining?Yes
Has the financial condition of the potential beneficiary been assessed in accordance with the order of the Ministry of Finance of Ukraine dated 14.07.2016 No. 616?
Yes
NPV Value557'500'000 UAH

Availability of services

Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
Not applicable – the project does not provide for the provision of paid services or the establishment of tariffs

[Response was provided in the Preliminary Investment Feasibility Study]

Project Financing Mechanisms

Are funding sources and mechanisms identified?

Source and MechanismYesNo

Funding Sources

Approved Funds0 UAH0 UAH
Expected Funds0 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]

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]

Economic feasibility study - technical expertise

[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]

Economic justification - environmental expertise

[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
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?
No

[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]

Commercial experts

[Response was provided in the Investment Feasibility Study]

Technical experts

[Response was provided in the Investment Feasibility Study]

Are there plans to involve experts and consultants for further implementation of the project?
Yes

[Response was provided in the Investment Feasibility Study]

Risk assessment

Financial riskDefinedUndefined
Operational 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
02/03/2026SP-L-020326-AC402554Community SPInvestment Feasibility StudyInclude--