Water supply and sanitation in Ukraine

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Water supply and sanitation in Ukraine

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Title: Water supply and sanitation in Ukraine

1
Water supply and sanitation in Ukraine

Some history and recent developments

2
Water supply and sanitation in Ukraine

Introduction
EU WaterTime project was very interesting
exercise in trying to understand how water supply
was historically developed in Europe. Selection
of cities was quite representative and gave good
view of various so-to-say schools of drinking
water supply Nordic, French, German, British,
Eastern Europe, Western Europe

3
Water supply and sanitation in Ukraine

Unfortunately, WU from cities of the former
USSR were not represented at this project (except
of Baltic republics) though their recent history
is quite an indicative as to what political
changes, economic upheavals and stagnation may
cause to efficiency and reliability of operation
of WU utilities of big, but especially small
towns.

4
Water supply and sanitation in Ukraine

In my presentation I will try to review some
historical and recent developments in water
utilities activities and situation in Ukraine.
Historical aspect is concentrated on the city
of Kharkov from which I am and about which I have
better idea and understanding! It is also
concentrated on sanitation, because of
specialization of my institute water pollution
control and prevention

5
Water supply and sanitation in Ukraine

General data
Main source of water supply in Ukraine is surface
water about 80 .
The total production capacity of the entire
centralized water supply systems amounts to 25.7
million m3/day. Of that, 14.9 million m3/day is
the capacity of municipal utilities.
The total length of municipal water distribution
networks is 78.8 thousand km. The capacity of
waste water treatment facilities is 15.4 million
m3/day, while the length of municipal waste water
collection networks is 43.9 thousand km.
On a daily basis, 9.6 million m3 of waste water
is treated at the municipal facilities. 4.5
million m3 of insufficiently treated waste water
and 176.5 thousand m3 of untreated waste water is
being discharged into receiving water bodies.

6
Water supply and sanitation in Ukraine

After independence , the previously state-owned
utilities in Ukraine have been decentralised and
transferred to municipalities, and the central
government has ended subsidies to these
utilities
In 2004, municipalities owned 61 utilities,
while 4 remained owned and run by central
government . Municipalities now set utility
tariffs, in accordance with rules defining which
costs can be covered and acceptable profit margin
.
Municipalities have legal right to transform WU
into autonomous communal production enterprises
operations of which can be given into concession
or leased, but main assets (infrastructure)
still remain municipal property!

7
Water supply and sanitation in Ukraine

Majority of water utilities are communal
enterprises which operate water supply and
sanitation systems which are property of
municipalities. Number of private WU is negligent
and they are small.
Problem
There are no formal agreements (contracts)
between water utilities and municipal authorities
defining mutual obligations as to management,
funding and quality of service (no rule of law
and economic principles, but predominantly
administratively and politically motivated
relations)

8
Water supply and sanitation in Ukraine

Coverage - rather high (about 85 )
Drinking water quality average (often below WHO
norms)
Infrastructure deteriorating
- pipe breaks 2.5 per km/year
- sewerage collectors clogs 2.4 per
km/year
Water losses increasing (32 on average)
Reliability of supply average 18 hrs/day
Water consumption tends to decrease (now 350
l/pc/day)

9
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

General data Sanitation - what we have to-day
Population 1.850 mln
Length of sewers 900 km
Main pump station 1.5 mln m3/day
Treatment plants 2, total capacity 700.000
m3/day
BOD total 15 mg/l , suspended solids 12-15
mg/l

10
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Water consumption
Average 2- 4 annual decrease due to economic
stagnation, higher water tariffs, water metering,
decrease of water availability and access to it.
In the past (before 1992) in Kharkiv 60 of water
was consumed by population, 20 by industry.
Currently industry 2, population 80.

11
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Water consumption norms (Kharkiv, 2005)
Drinking (cold) water - 8.1 m3/day/per capita
Heating water 3 m3 /day/per capita
Water Losses
Water losses are leaks in distribution networks
and understated bills to households residing in
five- and nine-storey apartment buildings, which
account for 80 of the city population.
It means that these households consume more water
than their bills show.)
But very often actual consumption may be far less
then the water bill shows (8.1 3 m3/month
Kharkiv ) which is of great benefit to WU

Typical household utilities bill (in UAH)
(Kiev, September, 2005, for 1 person in a flat
with area of 38.7 m3)
- Drinking (cold water) 4.51
Hot (bathing) water 13.05
District heating 28.56
Cooking gas 1.89
House maintenance fees 22.45
Minor repairs 3.57
Electricity 7.96 (51 Kw/hour/month/person
Telephone connection 7.56 (per month)
Total (VAT incl.) 89.55 USD 20.0

13
Part 1 History of Water Supply in Kharkov

General data Sanitation - what we have to-day
Population 1.850 mln
Length of sewers 900 km
Main pump station 1.5 mln m3/day
Treatment plants 2, total capacity 700.000
m3/day
BOD total 15 mg/l , suspended solids 12-15
mg/l

14
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

City of Kharkov founded in 1656
1835 becomes center of a province
Development of industry since XIX century
Opening of centralized water supply system 1880
Main causes need for drinking water source close
to housing, need for clean water, fire
protection, fashion (Moscow had it, St.Petersburg
also), improvement of well-being of people
resulting in demand, business opportunity
Due to poor water quality death rate was at the
beginning of the XIX century 60.2 /1000/year
After opening of centralized water supply it went
down to 24.8/1000/year

15
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Decision to build sewerage system was taken only
in 1908 and designed to serve population of
600.000 people to be reached in 1950 (in 1912
239.000) city area 30 km2, 9,359 households,
length of street network 260 km
But in 1939 population already was 833.000 !!!
Sewerage production rate 7 buckets per capita
(Warsaw 6, Moscow 7) 1 bucket 10 liters
Industrial wastes share 20 of total design
figure of 5 mln. buckets per day
Treatment - biological

16
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Minimum pipe diameter 200 mm to minimize
clogging.
Material ceramic
Main collector 2.13 x 1.44 brick with concrete
casing due to location in water bearing layer
(depth 10 m). In operation now 80 years
Gravity flow from 7/8 of the territory served

17
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Official opening August 1914
Total sewers length 49 km
Treatment capacity 4.000 m3/day
System development
Network length 206 km in 1941 (49km in 1914)
In 1952 more than 25 of waste water was
discharged untreated
In 1952 design for reconstruction of the system
Capacity increase up to 400.000 m3/day

18
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Minimum pipe diameter 200 mm to minimize
clogging.
Material ceramic
Main collector 2.13 x 1.44 brick with concrete
casing due to location in water bearing layer
(depth 10 m). In operation now 80 years
Gravity flow from 7/8 of the territory served

19
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Estimation of waste water production in
thous.m3/day
From population 429 (1970)741(1980)
1.100 (2010)
From industry 267 (1970) 483 (1980) 250 (2010)
Total 696 (1970) 1.224 (1980), 1.350 (2010)

20
Water supply and sanitation in Ukraine History
of Water Supply in Kharkov

Water supply
Municipal 360.000 m3/day
Industrial supply 30.000 m3/day (from bore
wells)
and 10.000 m3/d (directly from rivers)
Water consumption norm 550 l/day/capita (1980)

21
Water supply and sanitation in Ukraine Recent
developments

Technical conditions of water supply and
sanitation systems
26 of water supply and sewerage networks are in
an emergency state,
40 of pump stations require major repair or
replacement.
High number of pipe bursts 2.5 per 1 km/year

22
Water supply and sanitation in Ukraine Recent
developments

WU expenses coverage National average -70
Only in Odessa and Chernigiv water production and
delivery costs are fully covered by existing
tariffs
For Ukraine as a whole rate of coverage is in the
range of 23 (Crimea) up to 96 (Lviv)
To compensate losses for WU cross-subsidies are
widely used water tariffs for industry are
typically 2-3 times higher than for population.
Population pays water bills much better now
1993 - 92
1994 - 97 (though there still is back payment
problem)
Water tariff for population in on average in the
range of 1UAH (0.20 USD cent)
and for industry it may reach - 7 UAH

23
Water supply and sanitation in Ukraine Recent
developments

Very often WU have to use their depreciation
funds to cover routine operational costs.
As a result, annual rate of main assets wear-out
at WU makes up on average 6- 8 but only 2 3
of these assets are annually renewed. As a result
the length of water and sewage pipelines in
emergency state increased from 2.500 km in 1985
to 37.500 km in 2004

24
Water supply and sanitation in Ukraine Recent
developments

Following USAID-funded project on Tariffs
reform and restructuring of municipal utilities
in Ukraine such performance contracts were
introduced in 6 medium-sized towns and in cities
of Lviv, Donetsk and Zaporizhizhia
Actions are also taken to give WU in
concessions (e.g. in Odessa) or establishment of
JSC (e.g. in Kiev). Majority of shares belong to
Kiev city state administration.
However, concession often serves as hidden
privatization. According to the law after expiry
of the concession period assets acquired during
concession period should be returned to the
municipal authority

25
Water supply and sanitation in Ukraine Recent
developments

Serious problem is posed by lack of unified,
standard and compulsory guidelines for water
tariffs setting.
As a result water tariffs are results of
administrative pressure, political considerations
and without due care for their economic and
financial aspects
Concerning capital investments into WU situation
starts to improve. So during 2002 2004 volume
of capital investments doubled up to 243.5
million UAH (from the state budget) and 16.3
million UAH from local budgets. This amount is
still very low and is only used to eliminate hot
spots
But for reconstruction of centralized water
supply and sanitation systems ( mainly to meet
ecological requirements) only UAH 50 mln are
allocated for the period of 2004 2010 by the
State Programme budget

26
Water supply and sanitation in Ukraine Recent
developments

Another recent trend establishment of regional
WU (e.g. in Lugansk, Kiev,Rovno, Donetsk). This
is rather complicated process, often requiring
governmental decisions
Availability of approved business-plans of a WU
development is an important step to wider
introduction of concessions. Now only 5 of WU
have integrated capital investment programmes
Only starting from 2004 water tariffs include
investment component (e.g. in Odessa ), though
by law it was possible since 2001.

27
Water supply and sanitation in Ukraine Recent
developments

International funding
A number of projects are being implemented or
planned
World Bank in Lviv (USD 3.39 mln plus 4.66 mln
SK (Sweden)
EBRD Zaporizhizhia (USD 27.4 mln)
EBRD Dnepropetrovsk (started in 2005)
EBRD Lugansk, Vinnytsia planned)

28
Water supply and sanitation in Ukraine Recent
developments

Investments are mainly used for
Energy and water resources saving
Improvement of pumps operation and automation
Pipelines pressure optimization
Rehabilitation of pipelines
Water metering (which progresses slowly only
37.9 of houses have cold water meters (January,
2005)
Hot water meters 8.52
Thermal power meters 11.6
Water temperature regulators 2.5

29
Water supply and sanitation in Ukraine Recent
developments

Performance Agreement for Provision of
Water Supply, Wastewater Disposal and Heat
Supply.
This a contract signed between municipal
authorities and municipal utilities, including WU
Improvement of service provision
Tariff policy
Level of capital investment and how to finance
it
The role of the city authorities in implementing
the enterprises strategic action plans
Regulating the role of ZHEKs (house maintenance
company) in the provision of communal services to
customers and in the maintenance of in-building
pipe networks
Policy on metering services to customers.

30
Water supply and sanitation in Ukraine WaterTime
project history and recent developments in
Ukraine - conclusions

Analyses of conclusions and GRPs (44 0f them!)
prepared under this project show that in general
they are well considered and presented. Nearly
all of them would be appropriate to Ukrainian
situation. There is one good advise not to
blindly copy some GRPs or approaches to
conditions existing in that or another country.
Especially it concerns issue of PPP, tariffs
setting, privatization, subsidies

31
WaterTime project history and recent
developments in Ukraine GRPs Conclusions

2 TABLE OF GPRS
2.1 Background constraints history, actors and
factors
GPR 1 Understand the existing structure and its
development
GPR 2 Analyse impact of present developments on
the future
GPR 3 Clarify responsibility for ancillary
services
GPR 4 Clarify responsibility for water resources
GPR 5 Clarify fiscal problems
GPR 6 Reviewing external experience
GPR 7 Make sure relevance of international
context is understood
GPR 8 Take EC laws and rules into consideration
GPR 9 Identify the actors and their interests and
objectives
GPR 10 Identify the relevant factors
GPR 11 Take steps to avoid corruption
GPR 12 Select consultants and experts carefully

32
2.3 Public sphere participation and
transparencyGPR 24 Improve decision-making
through public participationGPR 25 Be aware of
the role of representative democracy and
electionsGPR 26 Be aware of the role of
courtsGPR 27 Strengthen information rightsGPR
28 Information and public participationGPR 29
Need for clear definitions and transparencyGPR
30 Avoid secrecy of contractsGPR 31 Create
system for monitoring performanceGPR 32 Ensure
annual reports and public discussionGPR 33
Encourage participation in implementation and
monitoringGPR 34 Strengthen the role of auditors

2.2 Decision-making process
GPR 13 Identify the problem
GPR 14 Distinguish common and distinct problems
of private and public operations
GPR 15 Identify which public interests are being
addressed
GPR 16 Identify the objectives of reform
GPR 17 Identify the options
GPR 18 Consider alternative solutions to fiscal
problems
GPR 19 Review charging policies
GPR 20 Assess risks of all options
GPR 21 Undertake a comparative review of
developed options
GPR 22 Identify the criteria for evaluation
GPR 23 Adopting the final decision