Germany Provides Loan over 17 Million Euros for the Rehabilitation of the Drinking Water System of Chernivtsi

On February 6, there was signing of a package of inter-governmental and loan agreements for the reconstruction of the drinking water system of Chernivtsi.

A loan agreement was signed by Finance Minister Natalia Jaresko, German Ambassador Dr. Christof Weil, Member of the Management Committee of KfW development bank Roland Siller and Acting Director of the municipal enterprise “Chernivtsivodokanal” Yuri Rykhlo.

Germany, through a loan of over 17 million euros, provided by the German development bank KfW, will finance the rehabilitation of the Chernivtsi drinking water supply system. The loan will support the modernization of the urban water supply network of Chernivtsi. In a later phase, it is envisaged to also renew parts of the city’s sewage system.

Minister Jaresko said at the signing ceremony that it is an honor to sign this credit agreement. There are significant problems with existing water systems in Ukraine. Only 9% of these systems are not in a state of emergency. Most of them are 25 years old. More than 35% of water systems are even older, and have been in use since at least 1990. The project will reduce the technical lose of water and increase efficiency. Ukraine believes this project will be a good starting point to extend cooperation with other cities in Ukraine.

German Ambassador Dr. Christof Weil remarked that “Germany remains strongly committed to support Ukraine in its formidable reform challenges. Providing better public services at affordable cost is an important element of this modernization effort.”

Mr. Siller stressed that “KfW has extensive global experience in helping improve drinking water supply systems while also reducing energy consumption. With our partnership with Chernivtsi, we are able to use this experience for the benefit of the Ukrainian people for the first time.”

The mayor of the city of Chernivtsi, Oleksiy Kaspruk, noticed that because of the cost of the local water utility network, Chernivtsi water is among the most costly in Ukraine, despite the fact that the city is located in the area between the Dniester and Prut rivers.. The reconstruction project of the municipal water system will reduce technological and physical water losses, as well as increase the energy efficiency. "For us it is not only economic but also political issue. Today Ukraine wants to get independence in energy sector and our joint project - is a step in this direction,” stated Kaspruk.

The director of water utility, Yuriy Rykhlo, stated that “it is a complex project; it includes the reconstruction of individual water objects of the city, and optimizing the entire water system of Chernivtsi.” The project, he added, will allow the company to deliver quality water at a reasonable price.