Project II. "Modernisation of the water supply and sewerage system in Lutsk" No. 2_VOL_052 (in partnership with the European Investment Bank)

Loan: 13,929 EUR
Co-financing from the local budget: 20 %
The loan term is up to 20 years, with a grace period of up to 5 years.
Interest rate: up to 2%.

Project objectives:
1. Reduce the negative environmental footprint of the Municipal Enterprise "Lutskvodokanal" activities on the ecological situation.
2. Improve the quality of centralised water supply and sewerage services for final consumers.
3. Enhance the reliability of centralised water supply and sewerage systems in Lutsk.
4. Improve the financial and technical condition of the enterprise by renovating the main production equipment and networks using modern energy-efficient technological solutions.

Project activity	Capital investments, EUR in thousands
Reconstruction of water pipelines at Hnidavske and Dubno water intakes	1876,0
Reconstruction of sewage treatment facilities in Lutsk with the extension of the bioenergy processing and waste utilization unit and wastewater treatment	8156,5
Purchasing laboratory equipment	275,0
Replacement of the vehicle fleet of the enterprise	550,0
Technical service monitoring	750,0
Total cost of activities	11607,5
Co-financing to compensate for VAT, 20%	2321,5
Total financing	13929,0

Current state of the project:

- the feasibility study has been developed and updated;
- Environmental impact assessment was conducted and a positive conclusion was obtained;
- the Ministry of Finance of Ukraine has assessed the financial condition of the company and issued a positive resolution;
- a contract for technical support and engagement of consultants from the European Investment Bank was signed;
- a long-term investment plan was drawn up and approved by the bank;
- technical and environmental documentation was prepared and approved by the bank;
- a procurement plan was developed based on the priority investment plan.

**Expected Annual Impact from Project Implementation**
Expenditure item (activities)	Electricity saving, MWh	Reduction of losses in networks, thousand m3	Reduction of repair costs, etc., UAH thousand	Change in the number of staff, persons (+/-)
Reconstruction of water pipelines at Hnidavske and Dubno water intakes	0,0	40,0	150,0	0,0
Reconstruction of sewage treatment systems in Lutsk	547,5	0,0	10,0	0,0
Reconstruction of water pipeline sections d 600 mm	0,0	46,8	322,0	0,0
Replacement of the vehicle fleet of the enterprise	0,0	0,0	507,2	0,0
Total	547,5	116,8	989,4	0,0