Clean Water for Zaporizhzhia

In 1996, for each 100,000 inhabitants there were 237 cases of diseases attributed to the poor water quality and in 1998 as many as 335.

A program to improve water supply and waste water treatment was developed for the city to remedy the situation. The European Bank for Reconstruction and Development has earmarked $28 million for the project. Zaporizhzhia has already received the first installment of $3 million.

“It is expected that the water supply system rehabilitation and development program will be implemented over 4 years,” Petro Spasiuk, General Director of the Vodokanal Zaporizhzhia State Public Utility Company, told The Day. “This program will fully satisfy the requirement for the biological purification of waste water and will improve drinking water quality (by decreasing the content of chloro- organic compounds), and will replace 64 kilometers of the water supply.”

According to Mr. Spasiuk, the project will involve scores of Ukrainian firms selected on a competitive basis. Applications for participation in tenders have been received from 73 enterprises, design and research institutes. In addition, the project implementation unit is dealing with foreign firms.

Experts think that the loan agreement was signed on very favorable terms: 15 years maturity, including a four year grace period, during which interest only is to be paid. The loan will be repaid with Vodokanal’s own money based on a developed financial model (which will be defined in more detail after an international audit of the firm).

This is the first project funded by the EBRD in Ukraine’s housing and public utilities sector. During its implementation it is planned to work out a further investment scheme for this sector without using any state budget funds.