EU and Nefco initiative underway to repair and modernise damaged public utilities in northern and southern Ukraine

Russia’s full-scale invasion of Ukraine, which began in February 2022, has led to a severe crisis with significant human and economic consequences that continue to unfold. As a response to the widespread impact of the war, the European Union has allocated a EUR 75 million package for grant-funded contracts consisting of two phases aimed at repairing and reconstructing damaged critical infrastructure in Ukraine.

Читати історію українською мовою

• The European Union has allocated EUR 25 million to new projects in five cities in the Chernihiv, Sumy, and Mykolaiv regions that have suffered direct and indirect consequences of hostilities and warfare. The initiative is now in its procurement stage.
• The aim is to provide satisfactory municipal services for the population and IDPs, ensure sustainable and comfortable living conditions, and increase energy sustainability.
• These projects are expected to strengthen the energy security of local communities and boost their capacity to deliver municipal services to both residents and IDPs from Ukraine’s conflict zones. Working with Ukrainian municipalities, Nefco provides technical guidance to develop local green recovery plans to achieve this purpose.

The first phase is a EUR 50 million initiative financed by the European Union and managed by Nefco that aims to rebuild key municipal infrastructure in 12 communities in the Kyiv region, addressing water distribution, wastewater management, and heating infrastructure.

Now in its procurement stage, the second phase expands the scope of the programme to encompass heavily impacted regions in northern and southern Ukraine. EUR 25 million has been assigned to five additional projects in Chernihiv and Nizhyn in the Chernihiv region, Okhtyrka and Trostianets in the Sumy region, and Pervomaisk in the Mykolaiv region. Chernihiv, Nizhyn, Okhtyrka and Trostianets have suffered direct and indirect consequences of hostilities and warfare, including some damage to municipal infrastructure. These five small- and medium-sized cities have received less support and attention in their recovery efforts compared to other parts of Ukraine. Projects are expected to be fully implemented by end of 2026.

“In this second phase, Nefco’s team builds on the experience gained from the ongoing project implementation in the Kyiv region. The new projects have larger budgets per city than those in the first phase, enabling both crucial repairs and holistic modernisation of the public utility systems, which will positively impact the environment, residents, and IDPs,” says Henrik Toremark, Senior Programme Manager at Nefco.

The projects will focus on the modernisation and repair of public utilities in the district heating, and water and wastewater sectors. The aim is to provide satisfactory municipal services for the population and IDPs, ensure sustainable and comfortable living conditions, and increase energy sustainability, benefitting more than 200,000 people. Working with Ukrainian municipalities, Nefco provides technical guidance to develop local green recovery plans to achieve this purpose.

Moreover, the projects aim to enhance the energy efficiency of critical infrastructure, leading to increased resilience, cost savings, and reduced greenhouse gas emissions and nutrient load to water bodies. The projects are estimated to result in approximately 1,000 MWh in electricity savings, 8,400 MWh in heat savings, and a reduction of around 2,200 tonnes of CO₂ emissions annually.

For further information, please contact:

Henrik Toremark, Senior Programme Manager, Nefco
henrik.toremark@nefco.int, +358 504753090

Tetiana Lytvyn, Investment Specialist, Nefco
t.lytvyn@nefco.org.ua, +380 67 656 6207

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