Ukraine: EIB and multi-donor fund E5P sign EUR 5.11m funding agreement to support Mykolayiv Vodokanal water project

• The project will improve water services in the City of Mykolayiv in southern Ukraine, benefiting over half a million inhabitants
• It will be implemented jointly with the European Investment Bank (EIB) and  complements a EUR 15.54m EIB loan

The European Investment Bank (EIB) today signed with the multi-donor fund E5P and the Government of Ukraine a EUR 5.11m grant agreement to support the rehabilitation and modernisation of the water facilities of Mykolayiv Vodokanal, the municipal utility for water distribution and water treatment of the City of Mykolayiv. With 510,000 inhabitants, this is the ninth largest city in Ukraine.

The Eastern Europe Energy Efficiency and Environment Partnership, or E5P, is a EUR 200m fund supporting municipal investments in energy efficiency and environmental projects in the Eastern Partnership countries(1).

EIB Vice-President Vazil Hudák commented: “The support to the Mykolayiv Vodokanal project demonstrates the commitment of the EU and the international community to improve the availability of clean water and safeguard the natural environment for the benefit of the citizens of Ukraine. It will also help Ukraine meet its international commitments under the Convention on the Protection of the Black Sea against Pollution”.

Vice Prime Minister of Ukraine, Minister of Regional Development, Building and Housing and Communal Services of Ukraine Hennadii Zubko stated: “The European Investment Bank is a reliable partner of Ukraine in implementation reforms of Housing and Communal Services and Energy efficiency coupled with implementation of modernization municipal infrastructure projects. Mykolayiv Vodokanal project implementation surely a step towards new quality of water services for the city and its citizens. Thanks to our international colleagues EIB and E5P for regular support”.

Manager of the E5P Fund Anders Lund said: “The project will bring health and environmental compliance with national and international rules and the availability of higher quality of water and wastewater services for the population. The investment supports emergency and efficiency-generating measures for both water supply and wastewater collection and treatment and the extension of piped water supply to areas presently lacking access to quality drinking water”.

Background information:

As the world’s largest multilateral borrower and lender by volume, the EIB provides finance and expertise for sound and sustainable investment projects that contribute to furthering EU policy objectives. More than 90% of EIB activity is focused on Europe but it also supports the EU's external and development policies.

The EIB finances projects in Ukraine on the basis of the EU External Lending Mandate. This provides the EIB with a guarantee covered by the EU budget for projects of significant interest to the EU and its Eastern Neighbours in the areas of social and economic infrastructure, local private sector development and climate action.

The Eastern Europe Energy Efficiency and Environment Partnership (E5P) is multi-donor fund of EUR 200m designed to encourage municipal investments in energy efficiency and environmental projects in the Eastern Partnership countries. E5P was initiated by Sweden during its presidency of the EU in 2009. The fund merges financial contributions from the EU and a group of 21 nations, which are then used to leverage national funds and loans from international financial institutions.