Reconstruction of sewage treatment facilities for full biological treatment in the city of Artsyz, Odesa region
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
79
Preliminary Investment Feasibility Study
Project Status
Investment Feasibility Study
Entry into Portfolio
Local level of SPP
Implementation
Completion
- General information
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
- Summary
General information
Description of the project
Current project since 2024 within the framework of the Ukraine Recovery Program.
The project involves the comprehensive reconstruction of the existing sewage treatment plants (STP) in the city of Artsyz, Odessa region, in order to restore their full biological treatment and ensure stable, efficient and environmentally safe operation. The need for reconstruction is confirmed by a report on the results of the technical condition survey, which established that further operation of the facility is possible only after carrying out appropriate restoration work. The project will be implemented in two construction phases.
The purpose of the project
Main Goal:
Increasing compliance with modern standards
Secondary Goal:
Contribution to climate or environmental goals, Increasing compliance with modern standards, Improving the condition of infrastructure, Introducing innovations and energy-efficient solutions, Improving the quality of services
Description of the purpose of the project and ways to achieve it
The purpose of the project is to restore the full cycle of biological wastewater treatment in the city of Artsyz, ensure the ecological safety of the region and achieve 100% compliance of the quality of treated wastewater with national standards.
The implementation of the public investment project is planned in two construction phases. The complex of works is aimed at restoring the functionality and modernizing the infrastructure:
Reconstruction of existing structures: the reception chamber, sand trap, averaging devices, tank block will be restored, as well as the modernization of sand and sludge platforms.
New construction: a new screen building will be erected to increase the efficiency of mechanical treatment and a new production building to accommodate modern equipment and ensure proper working conditions.
Problems and solutions resulting from project implementation
The main problem is the critical technical condition of the facility. Report No. RS-23-112 confirms that further operation is permitted only after reconstruction due to the wear and tear of key structures, such as the receiving chamber, sand trap and tank block. This leads to a high risk of accidents and, as a result, to low quality wastewater treatment, which does not meet environmental standards. In addition, the obsolescence of the infrastructure, including sand/silt sites, complicates the effective treatment of sludge, and the lack of a modern grate building and production building exacerbates operational problems and increases operating costs.
Results of problem solving:
As a result of the project, the following threats will be completely eliminated:
Restoration of reliability: Reconstruction of critical components will extend the service life of the facilities, eliminating the risk of accidents.
Quality assurance: Full biological treatment will be restored, ensuring 100% compliance of wastewater quality with national environmental standards.
Infrastructure modernization: The construction of a screen building will improve mechanical treatment, and a new production building will create modern conditions for personnel and equipment.
Economic efficiency: The introduction of new technologies and equipment will significantly reduce operating and energy costs.
Thus, the project will transform a technically obsolete facility into a reliable, environmentally safe and economically efficient city life support system.
Socio-economic context
Indicator
Value
Number of employees of the institution/institution/organization
74 human
Number of jobs, including for IDPs
5 human
Capacity
1760 m3
Number of IDP users
1000 human
Number of people who will use the service
14200 human
Number of users from low-mobility population groups
6000 human
Number of IDPs in the geographical area of impact of the project
8000 human
Population in the geographical area of influence of the project
27000 human
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
3.1.2., 3.1.4 Reducing pollution due to insufficient wastewater treatment of surface water bodies in the community. Developing energy independence in the community.
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?
Аналіз історичних даних та поточного водоспоживання.
[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
14200 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]
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?
Climate change adaptation
[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"?
Conducting an EIA is not required.
[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:
None of the options are applicable
Does the project provide for improving women's access to services?
The project will improve women's access to education (primary, secondary, vocational)
[Response was provided in the Preliminary Investment Feasibility Study]
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]
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?
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]
A plan to mitigate negative social impacts focused on women has been developed
[Response was provided in the Investment Feasibility Study]
The percentage of women who could be resettled has been quantified
[Response was provided in the Investment Feasibility Study]
The percentage of women who may lose or gain access to resources (water, food, healthcare) is quantified.
[Response was provided in the Investment Feasibility Study]
The percentage of women who will gain new educational/professional opportunities is quantified
[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?
A policy/code of conduct on non-discrimination and gender equality has been developed
[Response was provided in the Investment Feasibility Study]
Mandatory training for project staff on gender equality and inclusion is provided
[Response was provided in the Investment Feasibility Study]
Alternative technical solutions
Technical Solution 1
Reconstruction of sewage treatment facilities with full biological treatment in the city of Artsyz
Technical Solution 2
Construction of new sewage treatment facilities with full biological treatment in the city of Artsyz
Cost breakdownCost justificationCost justification
Project cost (preparation and implementation)82'908'153 UAH187'000'000 UAH
For preparation1'625'000 UAH7'000'000 UAH
For implementation81'283'153 UAH180'000'000 UAH
Project operation and closure cost8'500'001 UAH8'500'001 UAH
For operation8'500'000 UAH8'500'000 UAH
For closing1 UAH1 UAH
Average annual costs8'500'000 UAH0 UAH
Project duration, incl.23 months54 months
Deadline for developing a FFS9 months24 months
Implementation period14 months30 months
Service life720 months840 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
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, 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]
What procurement strategy was chosen for the project implementation, and what justifies its feasibility in the context of the market and project objectives?
Обрано комплексну стратегію закупівель. Єдиний генеральний підрядник несе повну відповідальність за закупівлю обладнання та будівництво. Обґрунтовання доцільності: 1. зниження ризиків: Комплексна закупівля покладає відповідальність за інтеграцію всіх елементів на одного виконавця, що критично для складних технологічних об'єктів, 2. забезпечує єдину точку відповідальності за кінцеву працездатність очисних споруд.
[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, незалежний нагляд
[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
Огляд відкритих тендерів, консультації з експертами, аналіз аналогічних проектів
[Response was provided in the Investment Feasibility Study]
Potential market participants
Перед оголошенням основних тендерних процедур були проведені попередні ринкові консультації. Консультації підтвердили наявність кваліфікованих компаній та дозволили сформувати гнучкий, але чіткий пакет вимог до контрактора
[Response was provided in the Investment Feasibility Study]
Market readiness assessment
Готовність українського ринку до реалізації проєкту реконструкції очисних каналізаційних споруд у м. Арциз оцінюється як Помірна до Високої. Наявність кваліфікованих виконавців та технологій дозволяє реалізувати проєкт, але його успіх залежить від застосування гнучких контрактних механізмів (механізмами коригування цін) для мінімізації економічних ризиків.
[Response was provided in the Investment Feasibility Study]
Financial justification
Total project budget
Total preliminary budget91'408'154 UAH195'500'001 UAH
Project cost (preparation and implementation)82'908'153 UAH187'000'000 UAH
For preparation1'625'000 UAH7'000'000 UAH
For implementation81'283'153 UAH180'000'000 UAH
Project operation and closure cost8'500'001 UAH8'500'001 UAH
For operation8'500'000 UAH8'500'000 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 Unitкількість отримувачів послуг
Service Unit Cost5'839 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
Approved Funds60'132'906 UAH0 UAH
Expected Funds60'132'906 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]
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?
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
Economic feasibility study - technical expertise
[Response was provided in the Preliminary Investment Feasibility Study]
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?
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]
Commercial experts
[Response was provided in the Investment Feasibility Study]
Economic analysts
[Response was provided in the Investment Feasibility Study]
Strategic consultants
[Response was provided in the Investment Feasibility Study]
Technical experts
[Response was provided in the Investment Feasibility Study]
Social/gender consultants
[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]
Risk assessment
Technical riskDefinedUndefined
Financial riskDefinedUndefined
Economic riskDefinedUndefined
Political riskDefinedUndefined
Social riskDefinedUndefined
Operational riskDefinedUndefined
Market riskDefinedUndefined
Environmental riskDefinedUndefined
Organizational events
ResponseDefinedUndefined
Team involvement
How exactly are/will stakeholders be involved?
Online survey
[Response was provided in the Investment Feasibility Study]
Meetings with local authorities
[Response was provided in the Investment Feasibility Study]
Public consultations
[Response was provided in the Investment Feasibility Study]
Public hearings
[Response was provided in the Investment Feasibility Study]
When are/will engagement activities be taking place?
At the project monitoring stage
[Response was provided in the Investment Feasibility Study]
At the project implementation stage
[Response was provided in the Investment Feasibility Study]
At the project preparation stage
[Response was provided in the Investment Feasibility Study]
How is/will the public be informed about the importance of participation and available channels for feedback?
Official websites
[Response was provided in the Investment Feasibility Study]
https://arciz-rada.gov.ua/rekonstrukciya-ochisnih-kanalizacijnih-sporud-povnoi-biologichnoi-ochistki-marciz-14-57-45-27-01-2025/
Social networks
[Response was provided in the Investment Feasibility Study]
Local media
[Response was provided in the Investment Feasibility Study]
Are public hearings being held/will they be held (offline, online)?
Yes, online
[Response was provided in the Investment Feasibility Study]
https://rada.info/upload/users_files/04057037/c6e888a0439d889f9012ea9db4ed8067.pdf
Who will attend the public hearings?
Representatives of public organizations
[Response was provided in the Investment Feasibility Study]
Experts
[Response was provided in the Investment Feasibility Study]
Community representatives
[Response was provided in the Investment Feasibility Study]
Government officials
[Response was provided in the Investment Feasibility Study]
Public hearings have already been held
No
[Response was provided in the Investment Feasibility Study]
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
18/12/2025SP-L-181225-0E2E4F1DCommunity SPInvestment Feasibility StudyCancellation of the decision to include in a joint venture--
19/12/2025SP-L-191225-25931A9FCommunity SPInvestment Feasibility StudyInclude--
23/02/2026SP-N-230226-003DE8A1State SPInvestment Feasibility StudyAwaiting review--
22/12/2025SPP-L-221225-DF6BA4E6Community SPPInvestment Feasibility StudyInclude-79