Sergey Novoselov was among speakers at the First International Water Forum “BORYSFEN 2018”

6 July 2018 Sergey Novoselov, energy efficiency finance expert of iC consulenten Ukraine was among speakers at the First International Water Forum “BORYSFEN 2018”.

The event gathered the leading Ukrainian experts who work in the field of water management. Key topics of the forum were actual issues of saving of water sources, problems of water carriage system (WCS), issues of attracting investment into WCS field, ways of implementation of energy efficiency projects as well as projects on energy saving and alternative energy in the sector.

Sergey dedicated his presentation to important aspects of implementation of projects with investment from the International financial organizations. Thus, he said that funds of Ukrainian enterprises, which can be used for reconstruction of the water supply and water treatment networks (annual turnover of amortization), comprise UAH 394 mln., and the amount needed for reconstruction of networks is 377 times bigger.

Among the main international financial organizations, which issue loans for reconstruction of WCS, are the Nordic Environment Finance Corporation (NEFCO), the World Bank, USAID, EBRD, European Investment Bank (EIB).

The State Budget of Ukraine in 2018 has foreseen the disbursement of loan funds dedicated to the reconstruction of the water supply and water treatment facilities in the amount of 2,54 billion UAH.

However, Sergey mentioned that the disbursement of loan funds for projects of reconstruction of WCS is very low now and violates between 7% and 12%. Main reasons are complexity in implementation of projects due to low professionality of employees at the enterprises including the organization of tenders and procurements; problems in writing of quality tender assignments and contractor`s requirements, risks of tender deny and “re-tender”, lack of understanding of scheme of documents submission or financing, etc.

To increase the disbursement of loan funds, according to Sergey, – could be executed through the involvement of project implementation units – professional experts with experience in the field of investment attracting from the international financial organizations.