2005 - 2006 - Pinsent Masons Water Yearbook 2012

UKRAINE PART 2: COUNTRY ANALYSIS
Ukraine
Water and sewerage connections in urban areas
Size of urban area Water Sewerage Distribution loss
>300,000 88% 81% 27%
100,000–300,000 92% 85% 32%
50,000–100,000 75% 48% 34%
10,000–50,000 74% 45% 23%
In urban areas, the average water delivery is for 17 hours per day, with 94% of drinking water samples
meeting health standards. Some improvement in unaccounted water levels has been noted, with a
fall from 47% in 1997 to 44% by 2001.
Service connections, 2001 Urban Rural
Water connection 83% 26%
Sewerage connection 57% 9%
Most wastewater treatment plants were built between 1960 and 1980, with an average age of about
25 years. In cities with a population above 100,000 people, about 80% of wastewater treated is
subject to secondary treatment, while in smaller towns, the average is at about 45%. Many of these
plants only operate to primary treatment standard due to lack of maintenance and the need for
chemicals and power.
Cost recovery and realities
Billed revenues for Ukraine from centralised water and wastewater services accounted for €507
million in 2001, with water fees rising 16 times more than other consumer goods and services (1.46
million times against 89 thousand times) between 1992 and 2001. Although cost recovery has been a
official aim since 1998, this remains some way away, with the average duration for collecting bills
varying between 11.0 and 16.9 months between 1997 and 2001. In 2001, billings received met 77%
of operating costs for water and wastewater services. Tariffs in 2001 for water and wastewater were
the equivalent of US$0.158 per m 3 , implying an average monthly spending of US$1.27 per person.
In 2002, the Helsinki Commission (Holcomb) noted that municipal and industrial wastewater treatment
at the city of Lvov needs to be improved urgently. The sewerage network is in poor condition and
needs renovation to avoid groundwater pollution. A US$40 million project (€40.5 million) is expected
to start in the near future and will focus on the city’s discharges.
Private sector responses
The first international loan for a water or wastewater project did not take place until May 1999. The
EBRD has lent €26.5 million to Zaporizhzhia Vodokanal, the water and sewerage entity serving the
city of Zaporizhzhia’s 500,000 people. The loan is being used to upgrade the city’s water and sewage
treatment works to improve the quality of the city’s drinking water and to ease discharges into the
Dnieper basin. The city was selected because it charges for its services on a cost recovery basis and
is financially self-sufficient.
Sources:
DEPA (2003) Environmental Financing Strategy for the Municipal Water and Wastewater Sectors in the Ukraine. DEPA /
DANCEE, Copnhagen, Denmark
OECD (2004) Urban Water Reform in Eastern Europe, Caucasus and Central Asia: Progress Since the Almaty Ministerial
Conference, OECD, Paris, France
OECD (2004) Affordability, Social Protection, and Public Participation in Urban Water Sector Reform in Eastern Europe,
Caucasus and Central Asia, OECD, Paris, France
202 Pinsent Masons Water Yearbook 2005 – 2006