«This is a large-scale project»: about €120 million is needed to build new water treatment plants for Mykolaiv

Mykolaiv, archive photo NikVesti

The project to build new water treatment facilities for Mykolaiv will cost around €120 million. These funds will be provided by the European Investment Bank and the Danish government.

This was stated by Kristina Mikulova, Head of the European Investment Bank's Regional Centre for Eastern Europe, in a commentary to NikVesti.

«On our part, we are allocating 68 million euros under our «Municipal Infrastructure Development Programme». We are negotiating with Denmark to join this large-scale project with a grant component, because the project is much larger than the amount that the EIB is going to provide. Because the project is large-scale — it needs 100-120 million euros to achieve a full-fledged sustainable water supply for the residents of Mykolaiv, for decades to come, not just for the transition period.

We aim to minimise the debt burden and make our part of the financing as concessional as possible. Grants from Denmark will also help,» said Kristina Mikulova.

Kristina Mikulova, Head of the European Investment Bank's Eastern Europe Regional Centre, speaking to journalists in Mykolaiv, 20 January 2025, photo: Yulia Boychenko/«NikVesti»

According to her, it is expected that the state will repay the loan to the European Investment Bank.

«And the last piece of this puzzle is the Ministry of Finance of Ukraine, which has to assess whether this funding can be a pure subvention, whether the state can take on this debt, or whether it is impossible in the current environment. This discussion is still ongoing. We hope for a positive decision, although the final word remains with the country's leadership.

We are already looking for a sustainable solution. Because the project is long-term, it will not end tomorrow, as I said. The implementation schedule simply needs to be adjusted according to the financial capabilities of the state and municipality in any given year. I am confident that we will find a compromise that will suit Mykolaiv, the government, and us as international partners,» explained Kristina Mikulova.

As you know, the first stage of the tender is currently underway — prequalification for the construction of new water treatment facilities in Mykolaiv. The project is funded by the European Investment Bank and the Danish government. This means that at this stage, the submitted applications are being checked and a list of companies is being formed that will be able to participate in the next stage of contractor selection.

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Kristina Mikulova, Head of the EIB's Regional Centre for Eastern Europe, told NikVesti that there is a «temporary solution» and a «long-term solution» to provide Mykolaiv with quality water. What does this mean?

• «The temporary solution» is the launch of a new water supply system with modernised water treatment facilities that the city has. Funds for their modernisation should be allocated by the state. This will make it possible to supply treated water to the taps of Mykolaiv residents, but not yet of drinking quality.
• «The long-term solution» is to build new water treatment facilities. Funds for this are provided by the European Investment Bank (loan) and the Danish government (grants). This project will take several years to implement and should help provide the city with water of European standards.

Mykolaiv needs more purified water

Although a new water supply system for Mykolaiv was launched in October 2025, this does not guarantee that the city will immediately receive drinking water, as a new water treatment system needs to be built, Kristina Mikulova, Head of the European Investment Bank's Eastern Europe Regional Centre, told NikVesti.

At the same time, Deputy Mayor of Mykolaiv and head of the city's recovery working group Serhii Koreniev said that the Mykolaiv Recovery Agency is working to upgrade the wastewater treatment plant and launch it simultaneously with the new water supply system. And Vitalii Kim, head of the Mykolaiv Regional Water Authority, said he did not want to rush to take out a large loan for the construction of water treatment facilities for Mykolaiv, despite the EIB's readiness to allocate more than €100 million.

Later, it became known that the State Agency for the Restoration and Development of Infrastructure is currently upgrading the water treatment system for Mykolaiv on behalf of the government.

Together with the constructed water pipeline, this will allow the city to launch a centralised drinking water supply in August 2025, said Serhii Sukhomlyn, head of the State Agency for Infrastructure Recovery and Development.