BGV Group Management is embarking on a significant initiative to modernise urban water systems in Ukraine, leveraging private investment, advanced European technology, and local expertise. The company’s inaugural project, part of its Energy and Infrastructure division, aims to address the pressing challenges faced by Ukraine’s water supply and wastewater infrastructure, which is largely outdated and underdeveloped. According to the Danube Water Program by the World Bank and UNICEF, only about one-third of Ukraine’s population has access to wastewater treatment systems, a stark contrast to over 80% in the European Union. The majority of the country’s wastewater treatment facilities were constructed between the 1960s and 1980s and are no longer compliant with current treatment standards.
Oleksii Tymofieiev, a member of the BGV Group Management Board, acknowledged the sector’s challenges and the inherent risks of investing in Ukraine. He emphasised the necessity for local businesses and communities to spearhead these improvements, stating, “If we don’t start this work from the ground up, nothing will ever change.” BGV has committed to investing its own capital, which allows for greater flexibility and a quicker response than traditional funding methods. After more than a year of preparation, including discussions with city officials and site assessments, BGV is ready to launch its first project in Kalush.
The Kalush project will feature a wastewater treatment plant capable of processing up to 10,000 cubic metres of wastewater per day. Construction is anticipated to take two years, with a payback period of up to ten years, funded through a tariff that incorporates an investment component. The contract for wastewater treatment services will span 25 years.
Utilising WTR technology, a proven solution already implemented in over 200 projects globally, the Kalush facility aims to set a benchmark for future projects. Prior to selecting this technology, BGV conducted an independent expert analysis to ensure it met the necessary performance criteria. Maksym Habriichuk, director of NOVA-KOS LLC, the project company established by BGV to manage the construction and operation of wastewater treatment facilities, expressed optimism about the potential for similar projects across Ukraine, highlighting Kalush’s readiness to collaborate and the project’s solid economic and technological foundation.
In parallel, BGV is actively seeking additional projects in various Ukrainian cities and is exploring opportunities to establish a comprehensive water infrastructure operator, signalling a broader commitment to enhancing the country’s water management capabilities.
