Reconstruction of sewage treatment plants (STP) and installation of solar electric panels (SEP) in the city of Khmelnytskyi in Ukraine

Sector
Municipal infrastructure and services
Stream
Construction/reconstruction of sewage treatment plants for domestic wastewater
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion

General information

Description of the project

The construction object is the KOS-2 sewage treatment plant of the city municipal enterprise "Khmelnytskvodokanal", which is intended for the complete treatment of a mixture of domestic and industrial wastewater of the city of Khmelnytskyi, located at the address: Khmelnytskyi, Vinnytske Shose St., 135. The design capacity of the treatment plant is - 60,000 m3/day. The existing treatment plants have been in operation by the city since the 1980s. The structures have exhausted their operational and technological resources and do not meet modern requirements, both in terms of technical equipment and in terms of environmental friendliness and quality of wastewater treatment. The equipment is morally and physically outdated and extremely worn out, requiring constant capital investments to maintain it in working condition, which leads to excessive costs for operation and electricity. The project "New construction of sewage treatment facilities for household and commercial wastewater with a capacity of 60 thousand m3/day in Khmelnytskyi, Vinnytske Shosse, 135" on the territory of the existing treatment facilities No. 2 meets modern requirements for the feasibility of implementing all stages of treatment and sludge dewatering, the treatment facilities will provide the appropriate level of technological equipment, equipment, electrical and technical equipment and will ensure compliance with current Ukrainian norms and environmental standards. It is planned to implement new fine mechanical treatment facilities and install solar electric panels.

The purpose of the project

Main goal:

Improving the condition of infrastructure

Secondary goal:

Contribution to climate or environmental goals, Increasing compliance with modern standards, Introducing innovations and energy-efficient solutions, Improving the quality of services

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

Treatment plants will ensure the proper quality level of timely wastewater treatment. As a result, it will prevent irreparable pollution of water bodies and soil, groundwater. This is important for the ecology and will also affect flora, fauna, human and animal health.

Problems and solutions resulting from project implementation

The implementation of the project will provide the following benefits: - ensuring throughput capacity that will meet future needs and compliance with higher requirements for treatment facilities; - improved wastewater treatment will reduce the level of pollution and will not affect the ecological and chemical state of water bodies; - treatment facilities will provide an appropriate level of technological equipment, equipment, electrical and technical equipment; - reduction of greenhouse gas emissions up to 1,900 t СО2 - eq. It is planned to receive benefits from the reduction of greenhouse gas emissions due to a 15% reduction in electricity consumption for wastewater treatment; - new equipment with a high efficiency percentage will reduce electricity consumption by facilities by 15%; - improvement of the quality of wastewater flowing through the Southern Bug River to the Black Sea basin.

Socio-economic context

Indicator

Value

Capacity

60000 m3

Number of people who will use the service

250 thous. people

Number of IDP users

4 thous. people

Strategic Case

Strategic feasibility of the project

Sector

Municipal infrastructure and services

Subsector

Water supply and sanitation

Stream

Construction/reconstruction of sewage treatment plants for domestic wastewater

Strategic document

Стратегія розвитку територіальної громади

Task

C.2 Environmental protection

Project objectives

Indicator
Base value
Target value
Electricity production for own needs, MW/year
0 MW
900 MW
Ensuring capacity to meet future needs and meeting higher requirements for treatment facilities; improved wastewater treatment will reduce pollution levels and will not affect the ecological and chemical status of water bodies
0 m3
60000 m3

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Department of Internal Affairs
[Response was provided in the Preliminary Investment Feasibility Study]

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

Yes
[Response was provided in the Preliminary Investment Feasibility Study]

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

Yes
[Response was provided in the Preliminary Investment Feasibility Study]
Indicator
Year
Demand
Annual demand for services/infrastructure
1
250 thous. people
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?

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]

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]
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, it was 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]
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?

Yes
[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?

Women's participation is ensured at various stages of planning (including public hearings)
[Response was provided in the Investment Feasibility Study]

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?

A gender specialist/advisor is included in the project management structure
[Response was provided in the Investment Feasibility Study]
Not provided for by the project
[Response was provided in the Investment Feasibility Study]

Documents

Name
Date
251218_KHM_WW_1_Annex_1_Concept_design.docx
21.02.2026
11:15:50 UTC

Alternative technical solutions

Technical Solution 1

Reconstruction of sewage treatment plants (STP) and installation of solar electric panels (SEP) in the city of Khmelnytskyi in Ukraine

Technical Solution 2

Modernization of existing sewage treatment facilities for domestic wastewater in the city of Khmelnytskyi

Total costs159'000'000 UAH140'500'000 UAH
  • For preparation
    • 0 UAH500'000 UAH
  • For implementation
    • 159'000'000 UAH140'000'000 UAH
    Average annual costs100'000 UAH200'000 UAH
    Project duration, incl.26 months38 months
  • Deadline for developing a FFS
    • 2 months36 months
  • Implementation period
    • 24 months2 months
    Service life480 months240 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
    1
    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?
    Yes

    [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?
    Відповідно до правил міжнародних відкритих торгів за стандартами і вимогами ЄС

    [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?
    Відповідно до правил міжнародних відкритих торгів за стандартами і вимогами ЄС

    [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]

    Pre-market engagement
    Відповідно до правил міжнародних відкритих торгів за стандартами і вимогами ЄС

    [Response was provided in the Investment Feasibility Study]

    Potential market participants
    Відповідно до правил міжнародних відкритих торгів за стандартами і вимогами ЄС

    [Response was provided in the Investment Feasibility Study]

    Market readiness assessment
    Відповідно до правил міжнародних відкритих торгів за стандартами і вимогами ЄС

    [Response was provided in the Investment Feasibility Study]

    Financial justification

    Total project budget

    Total preliminary budget159'000'000 UAH140'500'000 UAH
    Capital costs159'000'000 UAH140'500'000 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation0 UAH500'000 UAH
    For implementation159'000'000 UAH140'000'000 UAH
    For operation0 UAH0 UAH
    For closing0 UAH0 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 Unit1 особа споживач послуги
    Service Unit Cost635 UAH

    Profitability of the project

    Is the project expected to generate income?

    ResponseNoNo

    Availability of services

    Has an analysis been conducted of the accessibility of services for consumers and their financial ability to pay the established tariffs?
    Yes – the analysis was conducted, it was found that the tariffs correspond to the financial capabilities of consumers

    [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?
    The project does not fall under the PPP format by its nature/character

    [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?
    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]

    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?

    Yes
    [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 StatusDecisionReasons
    23/02/2026SP-L-230226-1077C391Community SPInvestment Feasibility StudyInclude-
    25/02/2026SPP-L-250226-F0733962Community SPPInvestment Feasibility StudyInclude-