Nova-Kos, a company founded in 2025 by Ukrainian businessman Hennadiy Butkevych, will invest UAH 513 million in the construction of new wastewater treatment facilities in Kalush, Ivano-Frankivsk Region. The project will be the company’s first and is expected to be implemented without funding from the state or local budgets.
The project was announced by Ukraine’s Restoration Agency on September 3. The new treatment facilities are planned to be built entirely with private investment from Nova-Kos. The total project cost is estimated at UAH 513 million, with the investor intending to finance the construction in full.
The mechanism for recovering the invested funds provides for an investment component to be incorporated into the wastewater treatment tariff. Under the project terms, at least UAH 50 million per year is to be included in the tariff as an investment component, allowing the company to gradually recover the capital invested in construction.
At the same time, the project provides for an investor protection mechanism if the tariff set for households is lower than the economically justified level. In such a case, the difference between the economically justified tariff and the tariff charged to consumers is expected to be compensated to the company from the municipal budget.
Kalush will become Nova-Kos’s pilot project. The company views it as the first stage in scaling its business in the modernization of municipal infrastructure. According to Nova-Kos CEO Maksym Habriychuk, the company is currently already working with or negotiating with approximately 15 Ukrainian cities.
The company expects significant demand for similar projects due to the deterioration of existing infrastructure. According to Habriychuk, around 80% of wastewater treatment facilities in Ukraine are outdated, operate inefficiently or are not functioning properly.
“The market is practically open,” the head of Nova-Kos said on Ivano-Frankivsk television channel RAI, describing the prospects for private investment in the construction and modernization of wastewater treatment facilities.
For new facilities, the company plans to use vertical labyrinth technology. According to Nova-Kos, the technology can provide an operating life of more than 50 years. In addition, the company says its use could reduce electricity consumption by approximately 70% compared with conventional treatment technologies.
Nova-Kos also cites a high level of automation as another advantage of the technology. The treatment facilities will be able to operate almost automatically, which is expected to reduce operating costs. The company estimates the construction period for a facility at approximately one year.
The Kalush project is being implemented against the backdrop of Ukraine’s large-scale need to modernize municipal infrastructure. The deterioration of wastewater treatment facilities increases operating costs and creates environmental risks, while state and local budgets have limited capacity to finance extensive modernization.
Butkevych’s investment is based on a different model — construction of the facility with private capital followed by recovery of the investment through the tariff. This approach makes it possible to avoid financing construction directly from the budget, while creating long-term obligations for the city to ensure an economically justified level of payment for the service.
Nova-Kos was founded in 2025 by Hennadiy Butkevych, one of the co-owners of investment group BGV Group Management. In parallel, the group is developing projects in real estate and other sectors.
In particular, BGV Development, part of BGV Group Management, develops full-cycle residential and commercial real estate projects — from concept development to construction and commissioning. Its projects include the Equides Villas cottage community, the Boston and Ozon residential complexes in Kyiv, the Manhattan residential complex in Zhytomyr, and the Zhyto shopping center chain.
