France to loan 64 million euro to Ukraine to upgrade drinking water supply system in Mariupol
Ukraine plans to sign a loan agreement with France for the amount of 64 million euro to provide Mariupol with drinking water.
On Thursday, the Cabinet of Ministers met and approved the draft contract with the French Government and authorized the Minister for Occupied Territories and Internally Displaced Persons of Ukraine, Vadym Chernysh to sign it. The project includes the development of a general plan to improve Mariupol’s water supply and wastewater disposal systems by 2040.
70% of the parts and services for the implementation of the project are expected to be purchased from France. The rate of interest on the loan is 0.08%, with a grace period of 10 years.
The explanatory note to the documents stated that the existing water supply system of Mariupol is a part of the centralized water systems of the Donetsk region, which are outdated and need significant financial resources for repair and modernization. It is also noted that France is ready to provide Ukraine the loan under government and municipal guarantees.
The water that is supplied to the residents in Mariupol comes from the Siverskyi Donets River that crosses the Donbas demarcation line several times over its length. Because of the ongoing military operation in the Donetsk and Luhansk regions, the infrastructure is not in the best condition. Mariupol is at the very end of the water supply chain.
In October, an experimental plant was launched to reduce salt and hardness of the water supplied to the city.