Reconstruction and modernization of the main pumping station and pressure pipelines of the Yalpug irrigation system of Bolgrad district, Odessa region

Sector
Environment
Stream
Ensuring protection from the harmful effects of water in settlements, industrial facilities and agricultural lands, creating safe living conditions for the population
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
State level of SP
Implementation
Completion

General information

Description of the project

The Yalpug irrigation system was built in 1974. Over a long period of operation, the land reclamation system has suffered severe wear. Today, the pumping and power equipment is severely worn out and outdated and does not meet the needs of water users (water users have been fragmented), and therefore requires replacement and modernization. Pressure pipelines (d1000mm, L=2241.5m; d900mm, L=2000m;  d800mm, L=1522m) over a long and intensive period of operation (more than 50 years), as a result of an aggressive environment and close groundwater, as well as due to electrical corrosion, are severely worn out and rusted and have significant traces of through corrosion with the formation of holes. There are constant accidents (bursts) on pipelines, which require significant material and labor resources. Due to bursts, the reinforced concrete pipeline subsided, which led to the depressurization of the butt joints. For the further use of irrigated lands for their intended purpose, uninterrupted water supply to irrigated lands, effective use of water resources, and to increase the area of irrigated lands, it is necessary to reconstruct and modernize the land reclamation system.

The purpose of the project

Main goal:

Introducing innovations and energy-efficient solutions

Secondary goal:

Increasing compliance with modern standards

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

Modernization of pumping and power equipment and pressure pipeline will affect: 1. Rational use of energy carriers. 2. Reduction of the consumable part of the cost of 1 m3 of water at the point of water allocation of the first lift. 3. Ensuring uninterrupted water supply at full operation of all units of permitted capacity. 4. Ensuring synchronous operation of pumping stations of the second lift. 5. Timely replenishment of the Dandor reservoir.

Problems and solutions resulting from project implementation

Problem: The outdated equipment of the main pumping station is very worn out, morally obsolete and does not meet the needs of water users. Two units are not working, have failed. Pressure pipelines for a long and intensive period of operation have significant traces of through corrosion, are very worn out, which leads to frequent bursts, the validity period of which has already expired, they are technically and morally obsolete. Solution: Modernization of new generation pumping and power equipment with maximum efficiency, introduction of modern less energy-intensive systems of soft start and regulated productivity, emergency automation systems and use of alternative energy sources will increase energy efficiency, ensure uninterrupted water supply to irrigated lands and reduce the cost of 1m3 of water for water users. Modernization and reconstruction of steel and reinforced concrete pressure pipelines with polyethylene will ensure a reduction in water losses, i.e. rational use of water resources, and will also ensure an increase in irrigated areas.

Socio-economic context

Indicator

Value

Other economic

0.4 kW

Capacity

1.5 m3

Other functional

5 units

Strategic Case

Strategic feasibility of the project

Sector

Environment

Subsector

Water protection, water management development, flood risk mitigation, centralized water supply, management, use and restoration of surface water resources

Stream

Ensuring protection from the harmful effects of water in settlements, industrial facilities and agricultural lands, creating safe living conditions for the population

Strategic document

Water Strategy of Ukraine until 2050

Task

1 Preparation and implementation of flood risk management plans in accordance with the legislation and provisions of Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks

Project objectives

Indicator
Base value
Target value
Length of reconstructed pipelines
5.76 km
5.76 km
Increasing the irrigation area
250 ha
1000 ha

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?

Sustainable use and protection of water and marine resources
[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:

None of the options are applicable

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

None of the options are applicable

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

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

Documents

Name
Date
Document for justification of financing.docx
26.01.2026
07:24:41 UTC

Alternative technical solutions

Technical Solution 1

Solution 2

Technical Solution 2

Solution 1

Total costs25'000'003 UAH65'000'003 UAH
  • For preparation
    • 1 UAH1 UAH
  • For implementation
    • 25'000'000 UAH65'000'000 UAH
  • For operation
    • 1 UAH1 UAH
  • For closing
    • 1 UAH1 UAH
    Average annual costs10'000 UAH5'000 UAH
    Project duration, incl.17 months36 months
  • Deadline for developing a FFS
    • 5 months12 months
  • Implementation period
    • 12 months24 months
    Service life300 months300 months
    Target indicatorsDefined Defined
    Technical Solution Status
    Active

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

    Unsuccessful

    [The technical approach was analyzed and considered for implementation but was not selected as the final option.]

    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]

    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]

    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

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

    [Response was provided in the Preliminary Investment Feasibility Study]

    Yes, only national

    [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]

    Yes

    [Response was provided in the Preliminary Investment Feasibility Study]

    Financial justification

    Total project budget

    Total preliminary budget25'000'003 UAH65'000'003 UAH
    Capital costs25'000'003 UAH65'000'003 UAH
    Operational costs0 UAH0 UAH

    Preliminary cost breakdown

    Operating costs for implementation0 UAH0 UAH
    For preparation1 UAH1 UAH
    For implementation25'000'000 UAH65'000'000 UAH
    For operation1 UAH1 UAH
    For closing1 UAH1 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]
    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 UnitПослуги з подачі води водокористувачамПослуги з подачі води водокористувачам.
    Service Unit Cost5'000'000 UAH13'000'000 UAH

    Profitability of the project

    Is the project expected to generate income?YesYes

    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]

    No – analysis not performed

    [Response was provided in the Preliminary Investment Feasibility Study]

    Project Financing Mechanisms

    Are funding sources and mechanisms identified?

    Source and MechanismYesYes

    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]

    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]

    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)
    None of the options are applicable
    None of the options are applicable
    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]

    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
    None of the options are applicable
    Is there an understanding of where to find relevant experts and consultants?
    No, I need help.

    [Response was provided in the Preliminary Investment Feasibility Study]

    No, I need help.

    [Response was provided in the Preliminary Investment Feasibility Study]

    Risk assessment

    Financial riskDefinedDefined
    Market riskDefinedDefined
    Results of the feasibility analysis
    Project Preparation Program Engagement and Funding Needs

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

    Other
    [Response was provided in the Investment Feasibility Study]
    Finalization of existing documentation for the preparation of a preliminary feasibility study
    [Response was provided in the Investment Feasibility Study]
    Updating existing documentation regarding the preparation of the feasibility study
    [Response was provided in the Investment Feasibility Study]
    Updating existing documentation regarding the preparation of design and estimate documentation (DED)
    [Response was provided in the Investment Feasibility Study]

    Project Approval History

    DateDecision NumberPortfolioProject StatusDecisionReasonsMaturity level
    15/02/2026SP-N-150226-F2BC7087State SPInvestment Feasibility StudyCancellation of the decision to include in a joint ventureAn important project for the region. It is important for the food security of the state.-
    02/03/2026SP-N-020326-076E1A26State SPInvestment Feasibility StudyInclude--
    26/02/2026SPP-N-260226-236EC4D5State SPPInvestment Feasibility StudyNot approvedAccording to the results of expert assessment-
    11/03/2026SPP-N-110326-A97414ABState SPPInvestment Feasibility StudyNot approvedAccording to the results of expert assessment-