Energy efficient water supply in Lutsk

The city of Lutsk in Ukraine will get cleaner water as a result of the investment. Photo: Patrik Rastenberger

NEFCO and the water company PUC Lutskvodokanal in north-western Ukraine have signed a loan agreement aimed at upgrading the city’s water supply and drainage systems. NEFCO’s loan of EUR 495,000 will enable Lutskvodokanal to invest in the reconstruction of underground water intakes, modernise three pumping stations with new equipment and introduce a better monitoring system for the water supply system.

The project measures will bring about favourable environmental benefits in terms of reduced electricity consumption of 1,609 megawatt hours annually. This in turn will cut the company’s emissions of carbon dioxide by 1,287 tonnes. These energy savings also have significant economic advantages since Lutskvodokanal will save approx. EUR 136,000 annually by spending less money on electricity.

PUC Lutskvodokanal provides water to some 90,000 people and about 1,800 companies, organisations and public institutions in Lutsk and surrounding villages. The current water distribution system, maintained by the company, covers four water intakes, 55 wells, 300 kilometres of water and drainage networks and 18 sewage pumping stations.

NEFCO will provide a loan from its Facility for Cleaner Production to finance the investment. The Facility was established in 1997 to promote technological investments in industrial projects in order to curb the emission of harmful substances into the environment. The facility can finance up to EUR 500,000 or 90 per cent of the investment cost for such projects in the form of loans with favourable conditions. Since 2014 the Facility has also been able to finance investments in renewable energy.

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