BGV Group Management is starting a long-term effort to upgrade city water systems by combining private investment, proven European technology, and Ukrainian expertise. The company has begun work on its first water treatment project through its Energy and Infrastructure division. This is the first step in BGV’s strategy to invest in urban infrastructure.

According to the Danube Water Program of the World Bank and UNICEF, only about one-third of Ukraine’s population is connected to wastewater treatment systems, compared with more than 80% across the EU. Ukraine’s water supply and wastewater infrastructure is also 70–90% worn out overall[1]. Most municipal wastewater treatment plants were built in the 1960s–1980s and no longer meet required treatment standards.

“We understand the sector’s challenges and the risks of investing in Ukraine. But if Ukrainian businesses and local communities don’t start this work from the ground up, nothing will ever change,” says Oleksii Tymofieiev, a member of the BGV Group Management Board of Directors. “We are preparing to launch several projects in cities and regions across the country. We can work through different organizational models. At this first stage, we are ready to take on the risks and invest our shareholder’s own capital. This gives us more flexibility and lets us move faster than other funding options.”

BGV spent more than a year preparing to launch its first project. The company talked with officials from several cities and reviewed and assessed potential sites.

BGV Group Management is the project’s strategic investor. The projects themselves will be carried out by NOVA-KOS LLC, a BGV project company created specifically to build and manage wastewater treatment facilities. Its team includes specialists with relevant industry experience. The projects will use European technologies and core equipment, while Ukrainian companies will handle the design and serve as general contractors.

The first project will be built in Kalush. It will include a wastewater treatment plant with a capacity of up to 10,000 cubic meters per day. Construction is expected to take about 2 years, with a payback period of up to 10 years. The investment will be recovered through an economically justified tariff that includes an investment component. The wastewater treatment services contract will run for 25 years.

The Kalush project will use WTR technology, a proven treatment solution already deployed in more than 200 projects worldwide. Before selecting the technology for the Ukrainian project, BGV commissioned an independent expert comparison of the key wastewater treatment solutions. That analysis identified WTR as the best overall option across performance criteria.

“Kalush has shown that it is ready to partner, and the project itself has a clear economic and technological foundation. We see significant potential to develop this area further and carry out similar projects in other Ukrainian cities,” says Maksym Habriichuk, director of NOVA-KOS LLC.

At the same time, the company is lining up potential projects in cities across Ukraine and exploring ways to grow the business, including by creating a full-service water infrastructure operator.

[1] Water Supply Tariff Increase Policy Brief, February 2025