26.06.2026 | News
New agreed wastewater projects strengthen cooperation between Team Sweden, Nefco and Ukrainian municipalities to implement practical, investment-ready solutions for green recovery.
At the Ukraine Recovery Conference in Gdańsk in Poland, Nefco, together with Sweden and Ukrainian municipalities, signed a new set of project agreements to support Ukraine’s green recovery.
The projects focus on modernising outdated and damaged municipal wastewater infrastructure in Dobroslav, Kobleve and Poltava. The projects will help restore essential services while ensuring compliance with EU and Ukrainian environmental standards and strengthening resilience to future disruptions.
Ukraine faces severe damage to municipal infrastructure and increasing pressure to restore services quickly. At the same time, outdated systems continue to pose environmental and public health risks. Together, these Swedish-funded investments will improve wastewater services for hundreds of thousands of people, reduce nutrient pollution and greenhouse gas emissions, and strengthen municipalities’ capacity to deliver essential services.
“Our focus is on practical solutions that can be implemented now. These projects deliver concrete improvements in wastewater services while reducing environmental impact and strengthening resilience where it matters most: for people in Ukraine,” says Henrik Toremark, Senior Programme Manager, Nefco.
Team Sweden collaboration in support of Ukraine
The newly signed projects are the result of close collaboration among Team Sweden partners.
The investments were identified as priority measures in feasibility studies financed by Swedfund and completed in 2025. Swedfund supports preparatory work to develop bankable, sustainable solutions and create opportunities for Swedish businesses.
“The three projects show how Swedfund’s Project Accelerator helps turn local needs into sustainable infrastructure projects, preparing them for investment and enabling financing for implementation. Swedfund is currently supporting more than 10 similar projects in the water and wastewater sector, and in total around 40 projects in Ukraine, contributing to sustainable development and creating opportunities for Ukrainian communities and Swedish business,” says Johan Boström Heiskala, Director of Project Accelerator, Swedfund International.
The implementation of the projects is made possible by Sida’s recent contribution of SEK 700 million (approximately EUR 65 million) to the Nefco Green Recovery Programme for Ukraine. With this contribution, Sweden’s total support to the programme reached EUR 82.3 million, representing a substantial share of its overall funding. The total grant allocated for the three projects is EUR 16.5 million.
“Reconstruction of critical infrastructure and green transition are essential parts of Sweden’s development cooperation with Ukraine. The three projects embody the concept of “Building Back Better”, contribute to prepare Ukraine’s EU accession and provide concrete improvements to daily life of Ukrainians,” says Malin Perhult, Head of Unit, Sida.
To contribute to the application of Nordic best practices to the extent possible, Nefco is supporting initiatives to build partnerships between Nordic suppliers of equipment and materials and Ukrainian construction companies. One such initiative is organised by Business Sweden to support Swedish businesses in participating in the implementation of the projects.
Three new wastewater projects
The three projects have a total budget of EUR 19 million, of which EUR 16.5 million is grant-funded. The projects address multiple challenges: Untreated wastewater in Dobroslav and Kobleve is currently discharged into natural water bodies, while ageing infrastructure in Poltava leads to leakages, flooding and service interruptions.
Furthermore, all projects are equipped with solar power facilities with a total expected renewable electricity generation of 820 MWh per year providing resilience to power outages and reducing operational expenditures. Together, the projects will benefit 182,500 people and reduce CO2 emissions by 2,760 tonnes per year.
The projects are designed to meet EU standards for wastewater treatment effluent quality, demonstrating best practice and supporting Ukraine’s potential EU accession. Implementation is expected to run from July 2026 to December 2028, with tenders planned for late autumn and winter 2026.
- Dobroslav: The project will rehabilitate and upgrade the existing sewage network including pumping stations, construct a new wastewater treatment plant and prepare the village for the extension of the sewage collection system. It is expected to result in reduced discharge of nutrients and pollutants and reliable wastewater collection. Grant funding EUR 5 million, total project value EUR 5.5 million.
- Kobleve: The project will rehabilitate, upgrade and extend the existing sewage network including pumping stations, construct a new wastewater treatment plant and enable metered collection of wastewater from the large number of beach resorts in the village. It is expected to result in reduced discharge of nutrients and pollutants, reduced electricity consumption and improved financial performance of the water utility. Grant funding EUR 5.5 million, total project value EUR 6.0 million.
- Poltava: The project will reconstruct the main wastewater pumping station, which manages more than 60 per cent of the city’s wastewater, and incoming collectors. It is expected to result in reduced electricity consumption, leakages and risk of flooding as well as increased reliability of the water supply and wastewater services to the population. Grant funding EUR 6 million, total project value EUR 7.4 million.
For more information, please contact:
About Nefco Green Recovery Programme for Ukraine
Nefco Green Recovery Programme for Ukraine supports the rebuilding of critical infrastructure and the development of sustainable, resilient municipal systems across the country. The first part of the programme, which is fully grant funded, brings together over EUR 500 million in financing from the European Union and the Nordic countries. It currently supports more than 50 projects across 35 communities in Ukraine. Since 2022, over 40 projects have been completed, with investments focusing on energy efficiency, renewable energy, heating, water, waste and other essential municipal services. The programme combines grant financing with technical assistance and capacity building to ensure lasting impact at the local level. Read more on: www.greenrecoveryukraine.org
About Sida
Sida – the Swedish International Development Cooperation Agency – is a government agency working to create better living conditions for people living in poverty and under oppression around the world. Sida works on behalf of the Swedish government and parliament, and the agency’s activities are funded through Swedish tax revenue. Read more at www.sida.se
About Swedfund
Swedfund is Sweden’s development finance institution with the mission to reduce poverty through sustainable investments in developing countries. Swedfund plays an important role in the implementation of the 2030 Agenda and the Paris Agreement on climate. Swedfund shares the same goal as development cooperation in general, but the tools Swedfund uses are different. Swedfund has two instruments to fulfil its mission: sustainable investments in the private sector and technical feasibility studies through the Project Accelerator targeting the public sector. Read more at: www.swedfund.se