Scope of the project. The project involves the modernization of water supply and drainage systems in the city of Lviv and the partial transfer of their management and maintenance to a private partner with extensive international experience.
The goal of the project. increasing the efficiency of LKP “Lvivvodokanal” – the owner and operator of the infrastructure, and improving the quality of services provided to citizens by engaging a private partner to optimize business processes and cost structure, reduce the cost of providing services, and introduce new technologies in water supply and wastewater treatment.
The role of the state partner in project implementation.
To successfully achieve the goals of the project, the city is ready to do the following:
Analysis of the problem that is solved during the implementation of the project. Electricity costs make up more than 35% of the cost of services; 60% of water is supplied at a distance of more than 120 km from the source. At the same time, water losses amount to more than 60% (compared to 10% in Eastern and Central Europe and 5% in Western Europe). The quality of tap water varies by city, and frequent breakdowns of water pipes indicate the problem of regulating water supply pressure and the wear and tear of water pipes (according to various estimates more than 80%).
Sources of financing the project.
PPP Model: A PPP project based on user payments. The investor will receive the profit mainly due to the provision of water supply and drainage services in the city.
Expected results.
Property: communal
Public-private partnership project
The state partner is Lviv City Council
Advisory support – IFC
Project characteristics:
Project Status: Preliminary studies and analysis are underway (together with IFC).