Flowing Towards Recovery: Rebuilding Ukraine's Water and Sewage Infrastructure

The IKI supports the reconstruction of the water infrastructure in Ukraine.

In 2022, despite the difficult circumstances, the IKI Project “Financing Energy for Low-carbon Investment – Cities Advisory Facility Eastern Partnership and Central Asia Programme (FELICITY II)” set out to rebuild and refurbish infrastructure in Eastern Partnership and Central Asia countries in order to reduce emissions. The programme works hand in hand with the European Investment Bank (EIB), the EU’s Climate Bank, giving it access to crucial financing for climate action projects in cities.

FELICITY II is a regional project that supports the preparation and implementation of low-carbon infrastructure projects in the countries of the Eastern Partnership (Ukraine, Georgia) and Central Asia (Uzbekistan, Kazakhstan). Selected countries will have the opportunity to benefit from a comprehensive approach that combines the financial power and expertise of the European Investment Bank with in-country technical assistance from GIZ.

Through its innovative regional approach the project extends from Ukraine towards Central Asia, leveraging Ukraine’s experience for energy efficient renovations to also transform the building stock in Kazakhstan and Uzbekistan. It does so also through the local hub of the Cities Climate Finance Leadership Alliance.

Project start in Ukraine 

In Ukraine, the start of FELICITY II was announced at the annual Ukrainian ECO-Forum of water utilities in September 2022. The official kick-off then took place in February 2023 with the newly created Ministry of Reconstruction. Oleksandr Butenko, Deputy Minister of Rehabilitation for Housing and Communal Affairs, emphasised the importance of implementing FELICITY II in Ukraine in terms of both the restoration of the water and sewage infrastructure of Ukraine and the reformulation of legislation in this field, which will bring it into line with EU standards. In light of the ongoing war, the restoration of Ukraine's water and sewage infrastructure is vital. Damage to these systems poses serious health and environmental risks, necessitating urgent repair. By restoring access to clean water, improving sanitation, and preventing waterborne diseases, Ukraine can mitigate the humanitarian crisis and promote post-war stability.

At this stage, the project, in cooperation with the EIB and the Ministry of Reconstruction, is developing criteria for the selection of applications from water utilities wishing to participate in the water and sanitation sector rehabilitation and upgrading programme. In parallel with future improvements at the local level, work is also underway on legal acts to establish a legal framework for emission reductions in order to comply with the principles of Build Back Better. Work is currently underway to develop a recommendation on the accounting and reuse of sewage sludge, as well as an analysis of the necessary changes to construction standards for water supply and wastewater facilities. All planned regulatory documents must comply with EU norms and standards.

Supporting the adaptation of Ukrainian legislation in accordance with EU Directives

On the way to EU membership, FELICITY supports the deployment of a new EIB Water Recovery loan.

To pave the way, the first practical steps of the project were the creation of a professional working group to determine the priority tasks for adapting Ukrainian legislation in accordance with the EU Directives 

• 91/271/EU "On the treatment of urban wastewater"; 
• 98/83/EU "On the quality of water intended for human consumption"; 
• 2020/2184 "On the quality of water intended for human consumption". 

The working group also defined the main framework criteria for the participation of Ukrainian water utilities in the EIB credit program, which will be the further basis for discussions with the Ministry of Finance of Ukraine.

EU Directive 91/271/EU is crucial for Ukraine on the path to becoming an EU member state. It sets wastewater treatment standards that can improve water quality, protect public health, and enhance environmental standards. Compliance with the directive aligns Ukraine with European practices, fostering closer integration and providing access to technical expertise. Implementing these guidelines benefits Ukraine's water resources, public health, and aspirations for EU membership.

Country page Ukraine