Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

14 Dec 2004



PSD disclosed:

15 Sep 2004

Project Description

The proposed project involves a loan to the municipal water utility of the City of Dnipropetrovsk. Key objectives are to reduce operation and maintenance costs, water losses and discharge of untreated sewerage into Dnipro river and the Black Sea Basin and to improve the operational and financial performance of the municipal water and waste-water services in Dnipropetrovsk. Part of the loan proceeds would be used to finance a Project Engineer responsible for the preparation of tender documents, design, engineering services, procurement management and the construction supervision.

Transition Impact

The project would have an impact on the transition process through commercialisation and institutional strengthening of the Dnipropetrovsk water utility and the municipality, including an incentive based service contract, selected outsourcing and improved financial and operational performance. It would also contribute towards development and implementation of a tariff setting methodology, ensuring cost recovery, consumption-based billing, reduction of cross-subsidies, transparent tariff formula, and greater predictability of regulatory decisions.

The Client

The borrower will be the water utility (the Company) of the City of Dnipropetrovsk.

EBRD Finance

A senior loan of €20 million to Dnipropetrovsk water utility.

Project Cost

Equivalent to €30 million.

Environmental Impact

Environmental classification and rationale 
The EBRD has classified the project B/1. The project is associated with limited adverse environmental impacts and will result in significant environmental benefits, which can be readily identified and quantified in an Environmental Analysis. An environmental review of the existing operations and facilities is also required.
Information reviewed during the environmental appraisal 
The environmental appraisal has been based on the review of the following information:
Dnipropetrovsk Municipal Investment Programme for Water Supply and Sewerage Services, Jacobs Gibb, March 2004.
Environmental issues 
The environmental investigations showed that the project would result in significant environmental improvements and that any adverse environmental impacts would be limited. The project has been structured to meet Ukrainian and EU environmental standards and adequate mitigation measures have been incorporated in the project design. There are no adverse impacts associated with the implementation of the Priority Investment Programme. Construction-related impacts are likely to be localised, short term in nature and they will be efficiently prevented or mitigated by applying international construction practices and planning.
Environmental opportunities 
The project will improve availability and quality of drinking water, reduce leakage, improve wastewater collection and treatment facilities and result in energy savings. The operation will significantly contribute to decreasing the level of polluting discharges into the Dnipro River and the Black Sea basin.
Summary of mitigation measures 
An additional TC project will be undertaken to develop an Environmental Management Plan to help the Company and the City to (i) implement the investment Project in the environmentally sound and sustainable manner as well as to (ii) achieve its long term service goals to meet European drinking water supply standards and to provide a wastewater service which meets the EU and national Ukrainian standards for effluent discharges. The EMP will identify further measures that would be needed for the existing water and wastewater treatment facilities to meet applicable Ukrainian and EU environmental standards and help prioritising the most cost-efficient measures to improve environmental, health and safety conditions in water and wastewater management in Dnipropetrovsk..
Disclosure of information and consultation 
Environmental information on the project has been disclosed in accordance with the planning and construction procedures of Ukrainian law. No environmental impact assessment was required for the planned scope of the project. In the context of EBRD’s participation in the project, this environmental summary has been disclosed locally at Dnipropetrovsk Water and Wastewater Utility and City of Dnipropetrovsk’s offices as well as in English on EBRD website at www.ebrd.com.
Monitoring and reporting 
Dnipropetrovsk Water and Wastewater Utility will report to EBRD annually on the measured environmental impacts and on the implementation of the mitigation measures. The Bank will evaluate the project's compliance with the applicable environmental and social standards during the lifetime of the project by reviewing these reports. EBRD environmental specialist or appointed representatives may also conduct monitoring visits to the project when and if deemed appropriate.

Technical Cooperation

The project has benefited from the following technical cooperation programmes:
  • Technical Feasibility Study financed by the Netherlands and Canada;
  • Update of the Technical Feasibility Study financed by the EU TACIS JEP facility.
It is foreseen that the proposed project would include further technical cooperation support:
  • Creditworthiness Enhancement Programme to the City (donor to be identified);
  • Corporate Development Programme to the Company (donor to be identified);
  • Environmental Action Plan to the City and the Company (donor to be identified);
  • Project Engineer to the Company (donor to be identified).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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