Mykolaiv’s municipal enterprises have €26.4 million and $13.6 million in loan debts
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- Yuliia BoichenkoReporter
The Mykolaiv City Council building, photo: Vladislav KazminAs of July 2026, Mykolaiv’s municipal enterprises have outstanding loans totalling over 26.4 million euros and 13.6 million dollars.
These are loans taken out by the water utility, the electric transport company and the regional heating company to modernise the water supply, public transport and heating networks, NikVesti reports, citing consolidated data from the city council’s finance department, which is in the editorial office’s possession.
The largest debt in euros is currently held by the municipal enterprise «Mykolaivelektrotrans» — 16.2 million euros. In total, the company received a loan of 20 million euros from the European Bank for Reconstruction and Development (EBRD) to modernise transport infrastructure and purchase trolleybuses, spare parts and repair equipment. Of this amount, 3.7 million euros have already been repaid.
«Mykolaivvodokanal» still owes a further €10.2 million under a loan from the European Investment Bank, which was secured through the Ministry of Finance of Ukraine to implement a project to develop water supply and sewerage systems. Of the total loan amount of 15.5 million euros, the company has already repaid 5.3 million euros. Furthermore, the water utility has been making service payments on this loan for over ten years — since June 2015.
Meanwhile, another loan to the water utility — 16.2 million euros. In total, the company received a loan of 20 million euros from the Euro €10 million from the EBRD for the implementation of the emergency water supply support project in Mykolaiv — 16.2 million euros. In total, the company received a loan of 20 million euros from the Euro has not yet been drawn down. As of July 2026, the company has not received any funds and has no principal debt under this loan, although it is already paying the servicing costs for the loan agreement. Repayment of the principal is due to commence in April 2028.
«Mykolaivoblteploenergo» has the largest foreign currency liabilities in US dollars. Under two loans secured through the Ministry of Finance of Ukraine from the International Bank for Reconstruction and Development (World Bank) to improve the energy efficiency of district heating systems, the company owes 13.6 million US dollars.
For the first loan of $19.3 million, the outstanding balance is $11.5 million; for the second loan of $2.3 million, the outstanding balance is a further $2.1 million.
All of these loans are long-term: their final repayment is scheduled for the period from 2031 to 2039.
It should be noted that the mayor of Mykolaiv, Oleksandr Sienkevych, has asked municipal enterprises to provide detailed information regarding their financial obligations under major loans. In particular, this concerns the water utility, the regional heating and power company, the electric transport company and the passenger transport company.
What is the situation with Mykolaiv’s budget?
Back in May, at a city council session, it was reported that by the end of 2026, the city would be short of nearly 150 million hryvnias for school meals. Of this amount, over 109 million hryvnias are required for nurseries, over 33 million hryvnias for co-funding school meals, and a further 7 million hryvnias for special schools and vocational education institutions.
At the time, city councillors appealed to the Cabinet of Ministers and the Verkhovna Rada, requesting that additional funding be allocated to Mykolaiv from the state budget.
In June, the Executive Committee of the Mykolaiv City Council reallocated 864,500 hryvnias for meals in nurseries. At the time, the city council noted that these funds would only last until the end of the summer, after which the city council would seek additional funding. There is currently a shortfall of 60 million hryvnias required to finalise the contract for meals in nurseries.
At the end of June, the Ministry of Finance of Ukraine refused Mykolaiv’s request for 150 million hryvnias to organise meals in educational institutions. The ministry explained that these expenditure items for nurseries and vocational education institutions should be funded from the local authority budget, and also highlighted the growth in the city’s budget revenue.
On 1 July, the Government allocated a grant of 187.5 million hryvnias to fund school meals for pupils in the Mykolaiv region between September and November 2026.
Earlier, Mayor Oleksandr Sienkevych stated that Mykolaiv’s 2026 budget is a «survival budget» and does not cover all the community’s needs. According to him, the city lacks the funds to implement the state-initiated pay rise for teachers, pay for utilities, repair roads and cover other expenditure.
Back at the start of the year, Mayor Oleksandr Sienkevych reported that the Ministry of Finance would analyse Mykolaiv’s financial situation to assess the city’s need for additional funding. At the same time, he emphasised that the final decision depends not only on the Ministry of Finance’s calculations, but also on the political will of parliament.
This material was produced within the REACH – Media Partnerships for Accountability and Trust project, implemented by International Media Support (IMS) and supported by the Ministry of Foreign Affairs of Denmark. The content reflects the views of the authors and not necessarily those of the Danish government. Denmark’s support strengthens civil society and independent media in Ukraine, including in Mykolaiv.