Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

27 Oct 1998



PSD disclosed:

23 Jul 1997

Project Description

The project will finance critical investments in the water supply and wastewater sector in Zaporizhzhia and will enhance the financial and operational performance of Vodokanal, the publicly owned water company.

The project objectives are to: (i) reduce the pollution of the Dnieper river and the Black Sea basin; (ii) reduce wastage of water through demand-side management and a leakage reduction programme; (iii) reduce energy use and operating costs; (iv) improve the quality and reliability of water and waste-water services; (v) enhance Vodokanal’s financial and operational performance; and (vi) introduce private sector participation in the municipal utility sector.

Transition Impact

The project will:

(i) contribute to the institutions and policies that support markets through policies that promote market functioning and efficiency. In particular, it will include a new pricing methodology based on full cost recovery, the gradual elimination of cross-subsidies between categories of customers and the introduction of incentives for cost reduction;

(ii) contribute to market-based behaviour patterns through the demonstration effect of new instruments to finance activities in a country where no international financial institution has yet signed a loan in this sector. More importantly, the project will include private sector participation through a Design, Build and Operate (DBO) approach for the waste-water treatment plant whereby a private party will be responsible for carrying out the extension of the plant under a turn-key contract and its operation under an operation and maintenance contract;

(iii) contribute to the transfer of skills within the project through the technical assistance component.

The Client

The borrower is the wholly municipally owned water and waste-water company (Vodokanal) of Zaporizhzhia (Zaporizhzhia region).

EBRD Finance

US$ 28.0 million loan to Vodokanal.

Project Cost

Total project costs, including interest during construction and fees, total US$ 48.3 million.

Environmental Impact

The project concerns the upgrading and extension of the water supply and waste-water treatment facilities in Zaporizhzhia, a city of approximately 900,000 inhabitants located on the Dnieper river.

The project was screened ‘B/0’, requiring an environmental analysis of the proposed investment programme. This analysis will be carried out as part of a project preparation study.

The project aims to improve the reliability and efficiency of existing facilities and, once implemented, will bring substantial environmental and health and safety benefits. In particular, it will provide safer drinking water, reduce losses of drinking water currently caused by leakage in the supply system, reduce waste-water seepage into the ground, reduce discharges of untreated waste water into the Dnieper river, and improve the energy efficiency of the system.

Technical Cooperation

Technical cooperation funding was obtained from EU-Tacis for a corporate partnership with a reputable Western water operator.


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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