Nefco and city of Mykolaiv sign investment grant agreement to rebuild water supply infrastructure

Nefco and the city of Mykolaiv have signed an investment grant agreement to implement the reconstruction of a water supply system for a selected district in the city of Mykolaiv in southern Ukraine.

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  • Funds of up to DKK 40 million (approximately EUR 5.36 million) have been allocated to facilitate the implementation of the reconstruction of water supply system for a selected district in Mykolaiv city, Ukraine, and supporting activities.
  • The aim of the Non-Revenue Water project is to improve the reliability, sustainability and resilience of the water supply infrastructure and reduce water losses.
  • Due to its high population density, the Korabelnyi district in Mykolaiv has been pinpointed as the focus area for project implementation. Over 70,000 residents are set to benefit from improved water supply services.

Funds of up to DKK 40 million (approximately EUR 5.36 million) have been allocated to the implementation of the project and supporting activities from Denmark, through the Danida Sustainable Infrastructure Finance (DSIF), which aims to provide financing to Mykolaiv to improve non-revenue water management and rebuild the city’s water supply infrastructure. Due to its high population density, the residential district of Korabelnyi has been selected as the focus area for project implementation.

Korabelnyi’s existing water distribution network faces significant challenges. The infrastructure is in poor technical condition, with pipe leakages reaching around 40%. In addition, the pumping equipment at its three main booster pumping stations is outdated, unregulated, and inadequate for current water supply demands. Water consumption in this area suffers from low metering levels, resulting in inaccurate accounting. Addressing these issues is crucial for improving Korabelnyi’s water supply infrastructure and ensuring efficient resource management.

The aim of the project is to rehabilitate the existing water system, which will improve its reliability and sustainability. Over 70,000 Korabelnyi residents are set to benefit from these improved water supply services.

The project entails several key measures. First, approximately 11 kilometres of pipes are slated for replacement, constituting about 8% of the total network in Korabelnyi. Second, 55 master meters equipped with remote data collection in multi-storey apartment buildings are to be installed. Last, the project involves the replacement of pumps in three booster water pumping stations. These changes are projected to lead to municipal budget savings of approximately EUR 93,000 annually.

“Denmark assumed special patronage over the city and region of Mykolaiv following the request from President Zelensky, made during his address to the Danish parliament in the tense times of March 2022. Since then, this patronage has evolved into a unique multi-faceted partnership that covers multiple areas of cooperation. The underlying philosophy of the Mykolaiv-Denmark partnership is that we should not wait for peace to rebuild and relaunch, thereby contributing to Ukraine’s resilience. Therefore, Denmark is proud to support another aid package aimed at increasing the reliability and sustainability of the municipal water network, which serves over 70,000 residents in the City of Heroes,” says Jens Martin Alsbirk, Deputy Head of Mission, Royal Danish Embassy, Kyiv.

“This project is the first to be financed by DSIF and it aims to restore the drinking water supply for the population of Mykolaiv. The signed grant agreement demonstrates DSIF’s commitment to contribute to the rebuilding of Mykolaiv now and in the years to come, as part of Denmark’s overall support to Ukraine,” says Annemette Ditlevsen, Investment Director, IFU.

“The issue of water supply remains a priority for Mykolaiv. Together with our donors and partners, DSIF, the Danish government and Nefco, we are channelling all our efforts into restoring the centralised drinking water supply. We are also working on reconstructing the networks that have been significantly damaged by saltwater use. I am grateful to Nefco that we are launching this project to rebuild the water supply system in the Korabelnyi district, where the distribution network is in a particularly poor technical condition and needs to be replaced. I hope that implementing this project will reduce water losses and improve water supply services for more than 70,000 residents of Mykolaiv living in this area,” says Oleksandr Syenkevych, Mayor of Mykolaiv.

“Since 2021, Nefco has managed grant funds for Danida Sustainable Infrastructure Finance (DSIF). Together, we are working towards the timely and effective implementation of this latest project which will be the first of several Danish investments in Mykolaiv infrastructure which seek to improve Mykolaiv’s water infrastructure, strengthen its resilience, and build the city’s capacity to respond to war-generated impacts. The goal is to provide decent level of water supply services to the city population and internally displaced people,” says Iryna Fedorenko, Investment Adviser at Nefco.

For further information, please contact:

Bo Nyhus, Investment Director, Nefco, +358 10 6180 665

Iryna Fedorenko, Investment Adviser, Nefco, +380 96 270 9622, +358 50 400 53 82

Josefin Hoviniemi, Vice President, Communications, Nefco, +358 10 6180 643

About Danida Sustainable Infrastructure Finance

Danida Sustainable Infrastructure Finance (DSIF) provides concessional loans for large scale infrastructure projects in developing countries, primarily within water, energy, and transformational projects. DSIF is a central part of Denmark’s official development cooperation funded by the Danish Ministry of Foreign Affairs (Danida) and is administered by the Investment Fund for Developing Countries (IFU). Read more at

Photo: City view of Mykolaiv – City of Mykolaiv

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