The European Bank for Reconstruction and Development (EBRD) has provided a $27.5m financial package to be used by the west Ukrainian city of Lviv.
The finance goes towards the installation of a biogas plant for the generation of heat and power.
The package includes measures by the communal enterprise Lvivvodokanal to rehabilitate and modernise the wastewater treatment infrastructure in the city.
The investment will enable Lvivvodokanal to install a wastewater biogas combined heat and power plant (CHP), which will be able to generate up to 39,400 MWh of electricity annually thus allowing the company to achieve significant energy savings and will also lead to the reduction of greenhouse gas emissions equivalent to approximately 128,600 tonnes of CO2.
The proceeds will be used to significantly improve the efficiency and environmental performance of Lvivvodokanal, the major municipal utility which operates a 1,000-kilometre network of water supply systems and water treatment facilities and provides services to 760,000 residential and industrial users, according to EBRD.
The project also saw contributions from the Nordic Environment Finance Corporation (NEFCO) and the Eastern Europe Energy Efficiency and Environment Partnership (E5P).
The investment is expected to achieve significant energy savings and improve the quality of services.