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Upgrading water services in Russia

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Upgrading water services in Russia

The EBRD is supporting the rehabilitation of Pskov's water and wastewater systems. This upgrade will ensure the system is more reliable and environmentally friendly.

The poor state of the water supply and wastewater system serving the city of Pskov and four other villages in the north-western federal district of Russia not only made water distribution to the population unreliable, but also endangered the environmental equilibrium of the Velikaya river, crossing the city, and the Baltic Sea, where the river flows.

This is because in the past 20 years no systematic maintenance works were performed on the pipes, some of which were installed as far back as 1916. In these conditions, about 35% of the water distributed goes to waste or leakages. In addition, outdated treatment plants produce poor quality drinking water on the one side, and discharge insufficiently disinfected water into the river, on the other side.

An energy efficient water supply system

In 2010 the EBRD approved a loan of €13 million to the municipal water company for a project aiming at rehabilitating and upgrading Pskov’s water and wastewater infrastructure. The loan is co-financed by a capital grant of €6.5 million provided by the Northern Dimension Environmental Partnership (NDEP). The project will make the water supply process more energy efficient, improve water quality and significantly reduce the pollution of the Velikaya river.

Identifying investment priorities

The project builds on a feasibility study carried out thanks to the financial support of Finland that provided more than €180,000 in grant funds. The study helped the Bank identify the appropriate investment priorities, in compliance with the Russian and EU environmental standards, by producing technical assessments and recommending improvements for the efficiency of maintenance, financial performance and sustainability. This will ensure reliable water supply and wastewater disposal for the population, leading to a better environment.


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