The Verkhovna Rada of Ukraine passed the bill "On Ratification of the Grant Agreement (Mykolayiv Vodokanal water project (Development of water distribution and water treatment system of the city of Mykolayiv) under the E5P Program between Ukraine and the European Investment Bank".
EUR 5.11m funding will be directed to improve the efficient operation of pumping stations, water supply and sewerage networks in Mykolayiv, which will allow to reduce at least 10% electricity consumption for water pumping within 1 year after completion of the works.
The duration of the grant agreement is 36 months from the date of entry into force of the Agreement. The first tranche will amount to EUR 13 million, the subsequent tranche will be allocated after the European Investment Bank (EIB) receives requests for its implementation to the extent necessary.
The EIB loan is granted to Ukraine through the Ministry for Communities and Territories Development of Ukraine together with the Ministry of Finance of Ukraine on a non-refundable and free basis.
It should be noted that on October 19, 2018, the Government of Ukraine signed with the EIB and the multi-donor fund E5P (the Eastern Europe Energy Efficiency and Environment Partnership) grant agreement to support the rehabilitation and modernisation of the water facilities of Mykolayiv Vodokanal.