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European Investment Bank approves €81.6 million for Ukraine's water infrastructure recovery

European Investment Bank approves €81.6 million for Ukraine's water infrastructure recovery
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The European Investment Bank (EIB) has approved €81.6 million in financing for water supply and wastewater infrastructure projects across Ukraine over the past ten months, with the first five procurement procedures already underway.

The funding forms part of the Ukraine Water Recovery programme, which provides €100 million in concessional loans and an additional €25 million in grant co-financing to support the reconstruction and modernisation of essential water infrastructure.

According to Ukraine's Ministry for Communities and Territories Development, nine agreements for the transfer of loan funds have already been signed, while the grant agreement is currently undergoing ratification.

The progress was discussed during a meeting of the Water Supply and Sanitation Sectoral Working Group, bringing together Ukrainian authorities and international partners to address the sector's immediate needs and long-term investment priorities.

A central concern was maintaining uninterrupted water supply and wastewater services during the 2026–2027 heating season, particularly as Russian attacks continue to threaten critical infrastructure.

Participants discussed emergency response mechanisms, infrastructure resilience and financial assistance for communities facing damage to water and sanitation facilities.

Beyond immediate reconstruction, Ukraine is developing new investment models to attract private-sector participation in municipal water infrastructure.

Three pilot public-private partnership projects are being prepared in Dnipro, Khust and Uzhhorod, with preliminary project documentation expected to be completed and submitted to local authorities by the end of 2026.

In Dnipro, the proposed investment focuses on reconstructing the Kaidatska pumping and filtration station. The project includes upgrading pumping and filtration equipment, introducing automated systems and improving energy efficiency.

In Khust, Zakarpattia region, authorities are planning a comprehensive modernisation of water supply and wastewater infrastructure.

 

 

One of the project's principal objectives is to increase water availability from approximately six hours per day to continuous, 24-hour service. It also aims to reduce water losses to below 12% and modernise the city's sewerage network.

New wastewater treatment facilities are planned, with existing infrastructure remaining operational until the replacement capacity is commissioned.

In Uzhhorod, a separate project envisages constructing a new wastewater treatment line with a capacity of 50,000 cubic metres per day, alongside modern sludge-processing facilities.

The investment is expected to improve wastewater treatment, strengthen municipal infrastructure and reduce environmental risks affecting the Uzh and Tisza river basins.

The working group also addressed the financial sustainability of municipal water utilities, tariff reform, workforce development and coordination of international assistance for emergency repairs.

The initiatives reflect Ukraine's efforts to combine urgent wartime infrastructure recovery with longer-term modernisation, energy efficiency and more reliable access to essential public services.

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