Modernization of the municipal infrastructure of the city: water supply and drainage
Additional Information

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:

  • provide all necessary findings and research for the project;
  • provision of long-term use of water supply and water treatment facilities;
  • provide assistance in obtaining the necessary permits;
  • to facilitate public discussions.

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.

  • Funds from the local budget are for the development of the PPP project.
  • Funds from private investors – for the construction, operation and maintenance of facilities.

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.

  • Modernization of water supply and drainage systems
  • Transfer of objects for maintenance to a private company
  • Economy of the city budget

Property: communal

Information about the project

Public-private partnership project

The state partner is Lviv City Council

Advisory support – IFC

Project characteristics:

  • partial transfer of infrastructure into operation to a private partner.
  • modernization of water supply and drainage systems in Lviv.

Project Status: Preliminary studies and analysis are underway (together with IFC).