Reconstruction of wastewater treatment plants in Mykolaiv, Lviv region


Sector
Environment
Stream
Improving the ecological condition in the community
Maturity level
83
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 project "Reconstruction of wastewater treatment facilities in Mykolaiv, Lviv region" is aimed at modernizing and updating the wastewater treatment system in order to improve the ecological state of the environment and improve the quality of life of community residents. The project plans to reconstruct existing wastewater treatment facilities, install modern energy-efficient equipment, improve the technological process of water treatment and reduce the level of environmental pollution. The implementation of the project will ensure stable operation of the wastewater treatment system, reduce the negative impact on the river ecosystem, meet European environmental standards and contribute to the sustainable development of the community.

The purpose of the project

Main Goal:

Contribution to climate or environmental goals

Secondary Goal:

Improving the equality of wealth distribution

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

The city provides centralized wastewater services to about 13,248 thousand residents, private and state institutions of the city in the amount of 987 people, and also serves a preschool institution, private enterprises that are part of the Rozvadivskaya AH in the amount of 950 people. The main buildings and networks were built in the 80s of the last century. The existing treatment facilities are designed for full biological treatment of a mixture of household and industrial wastewater in the amount of 4,000 m3 per day. Wastewater through the city's household wastewater network enters the sewage pumping station, from where it is pumped to the treatment facilities. The treated wastewater is discharged into the Dniester River. The existing treatment facilities include: a sewage pumping station of the 2nd lift, a sand trap with a grate (2 pcs.), a distribution chamber, a block of primary and secondary settling tanks with aeration tanks, bio-ponds, a production building where the blower, panel, and household premises are located. The reconstruction of the treatment facilities consists of using a block of tanks, sludge digesters, and primary settling tanks with the addition of a hybrid reactor and lagoon to them. This project is aimed at solving the existing problem of environmental pollution, low quality of housing and communal services in terms of water drainage. The existing treatment facilities are not able to perform mechanical neutralization of wastewater. Currently, all units, blocks, equipment, technical lines that are part of the existing sewage facilities are in unsatisfactory technical condition, which cannot provide biological and mechanical treatment in full according to the design regime, which is a violation of Article 44. (clause 3.6.) of the Water Code of Ukraine. This problem negatively affects the quality of life of all residents of the city and nearby villages, namely 19,956 people. The problem is permanent and will not disappear in the near future without the implementation of certain measures for the improvement of the city of Mykolaiv, namely the modernization of existing treatment facilities and improvement of the quality of treated wastewater.

Problems and solutions resulting from project implementation

Key issues to be addressed by the project Outdated technical condition of wastewater treatment facilities The main technological elements and equipment have reached the end of their service life and do not provide the required level of wastewater treatment. High degree of physical wear (70–80%) leads to frequent breakdowns and increased operating costs. Non-compliance with modern environmental standards Treatment facilities do not provide wastewater treatment to a level that meets the current standards of Ukraine and EU directives. Untreated or insufficiently treated wastewater enters water bodies, in particular the Dniester River, deteriorating the quality of drinking water. High energy costs and inefficiency of the system Old pumping and aeration equipment consumes excessive amounts of electricity, which increases the financial burden on the local budget. Increased environmental risk for the population The release of untreated wastewater into the environment creates a risk of soil and aquifer contamination and threatens the health of community residents. Relevance of the problem The growth in the volume of wastewater due to the development of the city exceeds the design capacity of existing facilities. The lack of modernization for decades has led to a critical decrease in the efficiency of treatment. Ukraine has undertaken to bring environmental standards closer to EU requirements, so reconstruction is necessary to implement state strategies for sustainable development. Possible consequences if the problems are not resolved Further pollution of the Dniester River, which is a source of drinking water for several settlements. Deterioration of the sanitary and epidemiological situation, increased morbidity of the population. Increased financial costs due to accidents, fines and increased costs of repairing outdated equipment. Decrease in the investment attractiveness of the region due to deterioration of environmental conditions. Expected positive changes after project implementation Ensuring stable and high-quality wastewater treatment in accordance with environmental standards. Improving the ecological condition of the Dniester River and adjacent territories. Reducing energy consumption by 30–40% thanks to new equipment. Improving the safety and quality of life of the community population. Compliance with European environmental protection standards, promoting sustainable development of the community.

Socio-economic context

Indicator

Value

Number of people who will use the service

15185 human

Strategic Case

Strategic feasibility of the project

Sector

Environment

Subsector

Climate

Stream

Improving the ecological condition in the community

Strategic document

Стратегія розвитку територіальної громади

Task

14 development of a wastewater treatment system

Project objectives

Indicator
Base value
Target value
number of service recipients
15185 human
15185 human

Project Sustainable Development Goals

Demand for the service and its dynamics

What methodology was used to estimate demand?

Демографічний аналіз
[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
15185 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?

Pollution prevention and control
[Response was provided in the Preliminary Investment Feasibility Study]
Protecting and restoring biodiversity and ecosystems
[Response was provided in the Preliminary Investment Feasibility Study]

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

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

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
Economic analysis of the reconstruction of wastewater treatment plants.docx
24.10.2025
08:07:36 UTC

Alternative technical solutions

Technical Solution 1

Reconstruction of wastewater treatment plants in Mykolaiv, Lviv region

Technical Solution 2

Construction of new modular wastewater treatment plants

Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)87'015'000 UAH0 UAH
For preparation100'000 UAH0
For implementation86'915'000 UAH0
Project operation and closure cost3'058'000 UAH0 UAH
For operation3'000'000 UAH0
For closing58'000 UAH0
Average annual costs3'000'000 UAH0 UAH
Project duration, incl.26 months0 months
Deadline for developing a FFS2 months0 months
Implementation period24 months0 months
Service life960 months0 months
Target indicatorsDefined Not defined
Technical Solution Status
Active

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

Pending

[The project initiator has not taken any decision about this alternative technical approach.]

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?
No

[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?
Для реалізації проєкту обрано стратегію відкритих торгів з особливостями

[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?
Використання електронної системи закупівель

[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
Для забезпечення ефективності закупівель та досягнення цілей проєкту було проведено попереднє залучення ринку із застосуванням таких підходів: Огляд відкритих тендерів Аналіз проведених державних та місцевих тендерів на подібні будівельні та інженерні роботи. Виявлення вартості робіт, тривалості реалізації та практик оцінки пропозицій. Консультації з експертами та підрядниками Залучення спеціалістів із водопостачання та очистки стічних вод для оцінки технічних можливостей сучасних очисних систем. Проведення робочих зустрічей із потенційними підрядниками для уточнення можливостей постачання обладнання та реалізації робіт. Аналіз аналогічних проєктів Вивчення досвіду реконструкції очисних споруд у інших містах України

[Response was provided in the Investment Feasibility Study]

Potential market participants
Потенційні учасники ринку Консультації з представниками ринку Проведено робочі зустрічі та консультації з місцевими та регіональними компаніями, що спеціалізуються на будівництві та реконструкції очисних споруд. Здійснено попередні контакти з постачальниками обладнання для водоочищення та інженерних систем. Обговорено технічні вимоги, строки виконання та можливості реалізації проєкту. Очікуваний рівень конкуренції На основі аналізу ринку та попередніх тендерів прогнозується середній або високий рівень конкуренції, зокрема серед локальних та національних підрядників. Наявність кількох постачальників сучасного обладнання дозволяє очікувати конкурентні пропозиції за якістю та ціною. Потенційні постачальники та підрядники Будівельні компанії та підрядники, що мають досвід реконструкції водоочисних споруд.

[Response was provided in the Investment Feasibility Study]

Market readiness assessment
Оцінка готовності ринку Наявність кваліфікованих виконавців: Ринок демонструє достатню наявність підрядників та інженерних компаній, які мають досвід реконструкції очисних споруд та реалізації інфраструктурних проєктів аналогічного масштабу. Доступність технологій та ресурсів: Сучасні технології очищення стічних вод та обладнання (насоси, фільтри, біологічні реактори) доступні як на локальному, так і на національному ринку

[Response was provided in the Investment Feasibility Study]

Financial justification

Total project budget

Total preliminary budget90'073'000 UAH0 UAH
Project cost (preparation and implementation)87'015'000 UAH0 UAH
For preparation100'000 UAH0 UAH
For implementation86'915'000 UAH0 UAH
Project operation and closure cost3'058'000 UAH0 UAH
For operation3'000'000 UAH0 UAH
For closing58'000 UAH0 UAH
Чи була під час уточнення орієнтовного бюджету використана Методика розрахунку вартості публічного інвестиційного проєкту, затверджена наказом Міністерства фінансів України №316 від 23.06.2025 р.?
Yes
[Response was provided in the Investment Feasibility Study]
Чи була під час розрахунку орієнтовного бюджету використана Методика розрахунку вартості публічного інвестиційного проєкту, затверджена наказом Міністерства фінансів України №316 від 23.06.2025 р.?
Yes
[Response was provided in the Preliminary Investment Feasibility Study]

Average project cost per service recipient

Service UnitСередня вартість проєкту на одного отримувача послуги
Service Unit Cost5'500 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

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)
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]

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?
Partially, we have limited experience

[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 justification - environmental 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]

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?
Environmental experts

[Response was provided in the Investment Feasibility Study]

Financial consultants/modelers

[Response was provided in the Investment Feasibility Study]

Economic analysts

[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

Financial 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)?

Updating existing documentation regarding the preparation of design and estimate documentation (DED)
[Response was provided in the Investment Feasibility Study]
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
03/11/2025SP-L-031125-80D1B234Community SPInvestment Feasibility StudyInclude--
06/11/2025SPP-L-061125-C5B8E573Community SPPInvestment Feasibility StudyInclude-83