Ukraine : Addressing challenges in provision of heat, water and sanitation
Myroshnychenko, Yuri
This report examines major issues facing the heat and water sectors in the Ukraine, considers options for addressing the issues, and provides recommendations on priority policy measures. The first chapter of the report assesses investment needs of the sectors and lists financing options to be developed for addressing the investment backlog accumulated by the sectors over the past decade. The other two chapters are dedicated to the main issues to be overcome if the sectors are to attract financing for meeting the investment needs. Specifically, the second chapter identifies major causes of the unviable operation of the sectors and develops recommendations on how to make the heat and water utilities financially viable. The third and last chapter highlights the importance of an effective regulatory framework for balancing interests of the sector stakeholders and provides recommendations for developers of the framework. Moreover, it stresses the need to improve the governance of sector utilities at a municipal level and presents some options on how to introduce principles of corporate governance in the management of utilities and take the advantage of various forms of the public private partnership. Each chapter is preceded by a summary highlighting major issues and required policy measures to address them. The executive summary identifies crosscutting issues and specifies conditions under which reform efforts could succeed.
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