Ukraine is moving from urgent repairs of damaged infrastructure to a systemic modernization of the water sector with the involvement of long-term private capital. The Ministry of Development of Communities and Territories of Ukraine notes that problems with outdated networks and lack of funding existed even before 2022, and the full-scale war significantly worsened the situation.
According to the RDNA5 report, direct losses in Ukraine’s water sector reached $7.8 billion, economic losses – $14.4 billion, and the need for restoration and modernization for the next 10 years is $17.5 billion.
The state plans to cover part of these needs through public-private partnership mechanisms. The Ministry of Development and Infrastructure has already identified over 30 priority PPP projects in various sectors with a potential investment volume of over $5.7 billion. Five of them are to be implemented in the water sector.
In parallel, Ukraine is updating its legislation and attracting funding from European partners. According to Law No. 4777-IX, the authority to set water tariffs has been transferred to local authorities, which should strengthen the responsibility of communities.
Ukraine is also implementing European directives on drinking water through the national programs “Energovoda”, “Ekostok” and “Sotsvoda”. At the URC 2026 conference, the Ministry of Development and Infrastructure signed a grant agreement with the European Investment Bank for €25 million to co-finance community projects, primarily in frontline and affected regions.
Within the framework of the joint program with the EIB, the first community projects for €100 million have already been selected out of a total demand of €638 million. Due to the high need, the Ministry of Development and the EIB are working on the next tranche of a preferential loan for another €100 million, which they also plan to support with a grant of €25 million.
The modernization of the water sector should be part of Ukraine’s transition to the European water resources management system and the long-term restoration of critical infrastructure.
