EU and Nefco initiative makes significant progress in rebuilding Ukraine’s critical infrastructure

Russia’s invasion has wreaked havoc on Ukraine’s critical infrastructure, disrupting water, heating, and electricity services. Despite the war, a EUR 50 million initiative led by the European Union and Nefco is making strides in reconstructing key municipal systems and networks and advancing a green recovery in the Kyiv region and beyond.

• Over 80% of planned procurements have been launched, and most of the contracts have been awarded, signaling the start of project implementation. Completed contracts in Irpin and Borodyanka have already begun to improve water and heating systems, while in Hostomel, vehicles for maintaining wastewater management have been delivered and are already operational.
• The programme has expanded to include projects in the Chernihiv, Sumy, and Mykolaiv regions, addressing water distribution, wastewater management, and heating infrastructure.

Russia’s full-scale invasion of Ukraine in February 2022 has caused extensive damage to Ukraine’s critical infrastructure, leading to significant disruptions in essential services. Subsequent targeted attacks have heavily affected water supplies, wastewater management, heating, and electricity systems, while also destroying housing, schools, and healthcare facilities. Given this widespread impact, the repair and reconstruction of critical infrastructure have become urgent priorities.

To address these pressing needs, the European Union and Nefco launched a EUR 50 million initiative in December 2022 to rebuild key municipal infrastructure in 12 communities in the Kyiv region. These communities—Irpin, Slavutych, Borshahivka, Borodyanka, Nemishayeve, Ivankiv, Dymer, Dmytrivka, Velyka Dymerka, Kalynivka, Hostomel, and Piskivka—were temporarily occupied and heavily damaged during the early stages of the war but are again under Ukrainian control. These projects constitute Component I of the programme.

Photo: Members of Nefco’s Ukraine team inspect a rehabilitated water and wastewater treatment facility in May 2024  – Nefco

Despite, and in part because of the war, the initiative has made significant progress. Over 80% of planned procurements have been launched, and most of the contracts have been awarded to contractors. To date, six contracts in Irpin, Borodyanka, and Hostomel have been successfully completed. In Irpin, the information and computing systems for water and wastewater networks underwent rehabilitation, which involved implementing software updates and a new hydraulic model. Additionally, specialised machinery and equipment were procured. In Borodyanka, boiler houses and water and wastewater facilities were equipped with a modern monitoring and dispatching system. In Hostomel, vehicles for maintaining wastewater management have been delivered and are already in operation.

The programme was recently expanded to include five additional projects in the Chernihiv, Sumy, and Mykolaiv regions. These new projects make up Component II of the programme.

These projects focus on vital services such as water distribution, wastewater management, and heating infrastructure. Communities lacking water access after shelling are now seeing water distribution networks replaced, ensuring restored water services. In wastewater management, smaller prefabricated modular systems are being installed, designed to meet the specific needs of each community while adhering to Ukrainian standards. Furthermore, existing boiler houses are being refurbished to ensure more energy efficient and reliable heating.

Photo: The Nefco Ukraine team at a site visit in May 2024 – Nefco

The program is expected to benefit 245,000 inhabitants, reducing electricity consumption by approximately 17,000 MWh per year and lowering greenhouse gas emissions by 15,700 tonnes of CO₂ annually.

“The European Union has provided grants to rehabilitate district heating and water and wastewater infrastructure damaged by war in 12 Ukrainian communities. This initiative is expected to benefit about 245,000 Ukrainians by boosting energy security, improving water supply and wastewater treatment, and contributing to the country’s long-term sustainable development and green transition,” says Jocelin Cornet, Head of Department for Economic Cooperation, Energy, Infrastructure and Environment of the EU Delegation to Ukraine.

“Overall, Nefco serves as a crucial bridge between humanitarian crisis management and longer-term sustainable development. Our ongoing involvement in the repair and reconstruction of Ukraine’s critical infrastructure helps to increase energy sustainability, strengthen energy security, and further catalyse green reconstruction and recovery in the country,” says Ulf Bojö, Vice President, Eastern Europe, Nefco.

Read more about EU financed actions in Ukraine

For further information, please contact:

Ronny Nilsson, Senior Adviser, Nefco
ronny.nilsson@nefco.int,+358 10 618 0642

Iryna Fedorenko, Investment Adviser, Nefco
iryna.fedorenko@nefco.int, +380 96 270 9622, +358 50 400 53 82

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