UKRAINE WATER RECOVERY FL

The project consists of a framework loan (FL) to improve drinking water supply and waste water treatment in cities throughout Ukraine, focusing in particular to the quick restoration and repair of damaged or overstretched water and sanitation infrastructure. Despite ongoing war and difficulties, the economic and social life in many parts of Ukraine continues and the Government must ensure that at least basic needs of the population are met.

The aim is to ensure the safe and sustainable provision of critical services to the local population, including the large number of internally displaced persons (IDPs), predominantly women, children and elderly persons. The project will support municipalities under control of the Ukrainian Government that are hosting significant influxes of IDPs and that are sufficiently safe to benefit from the technical assistance. Eligible investments under the Ukraine Water Recovery FL would include: diagnostic equipment (water main inspection and leak detection systems), laboratory equipment, equipment for operation maintenance of networks, pumping stations and plants, special vehicles for water/wastewater services, reconstruction, rehabilitation, upgrade, extension, replacement, supply or new construction of water source infrastructure, water supply and distribution systems, water/wastewater treatment facilities, sludge processing facilities, water and sewerage house connection, including introduction metering and District Metering Areas (DMA), bulk water metering, Supervisory Control and Data Acquisition (SCADA) system and hydraulic modelling, water and energy efficiency measures, technical designs, supervision.

The operation consists of a Framework Loan that will target investments in water supply and sanitation. Water supply and sanitation needs in Ukraine have been estimated at EUR 7bn of which EUR 3.9 short term. By allowing the restoring of water and sewerage services, by rehabilitating key infrastructure and enabling environment for population and economic recovery, the project is fully in line with the main areas of EU support with Ukraine: "increase Ukraine resilience and support reforms, humanitarian assistance, economic cooperation and access to the single market". 

The project is also aligned with the objectives for beyond 2020 in Eastern Partnership: particularly with the first priority on investment in infrastructure, and with the third priority on transforming the region into fair and prosperous societies, with modern, resource-efficient, clean, circular and competitive economies,". The project is fully aligned with EU assistance to Ukraine in issues arising from the war.

EIB additionality stems from i) timely provision of significant funding with a long maturity ii) mobilisation of technical assistance and investment grants and iii) a significant support by EIB to project monitoring and implementation.

The large majority of the foreseen investments concern repairs and refurbishment of damaged water infrastructure and are to be performed within existing facilities or rights of way. Some of these schemes might be subject to Environmental Impact Assessment (EIA) under the National EIA Law, which transpose the requirements of the EIA Directive 2011/92/EC as amended by Directive 2014/52/EU and ensures compliance with Ukraine's international obligations under the Association Agreement between EU and Ukraine. Also, the relevant analysis of social risks and impacts of sub-projects will be duly carried out as part of the appraisal, in accordance with the EIB Social Standards. The project will contribute to climate action and environmental sustainability objectives, in particular to climate mitigation, climate adaptation, pollution prevention and control, sustainable use and protection of water and marine resources, protection and restoration of biodiversity & ecosystems.

The promoter has to ensure that implementation of the project will be done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.

Guarantee to be determined.