Project description
and objectives:
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The proposed project would involve loans to the City of Yakutsk (the City),
State Unitary Enterprise “Yakutsk Vodokanal” (the Vodokanal) and State Unitary
Enterprise of Communal and Housing Services (GUP ZHKH) of the Republic of
Sakha (Yakutia). The project would focus on priority investments that reduce
operating costs and finance general rehabilitation and upgrading of the
heating and water systems in the City and smaller municipalities of the
Republic of Sakha (Yakutia) (the Republic). The project would also finance
institutional strengthening of service companies and the Republican Government
and the municipal authorities in the City.
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Transition
impact:
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The project is likely to have significant demonstration effects, as it will be
the first long-term municipal infrastructure loan on a regional scale in the
Russian Far East. The transition potential of the operation relates to
optimisation of budget expenditures related to provision of communal services
in the remote northern settlements with harsh climate conditions;
commercialisation of water and heating services in the city of Yakutsk and
northern settlements through tariff reform, optimisation of subsidies to low
income residential consumers and through development and reorganisation of
operating companies providing services to municipalities in the Republic on a
basis of an incentive based Service Contracts. The project will also
contribute towards strengthening of corporate governance standards in
operating companies through introduction of IFRS for financial reporting.
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The client:
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The borrowers will be (i) the City; (ii) the Vodokanal; (iii) GUP ZHKH. The
Republic will provide a guarantee and project support undertakings to support
the project.
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EBRD
finance:
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Lending programme to include: (i) a loan up to RUB 300 million (EUR 8.5
million) to the City; (ii) a loan up to RUB 350 million (EUR 10 million) to
Vodokanal; (iii) a loan up to RUB 1000 million (EUR 28.4 million) to GUP ZHKH.
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Total project cost:
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RUB 2,500 million (EUR 71 million)
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Environmental impact:
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The project has been screened B/1 requiring environmental analyses of the two
components of the proposed multi-sector municipal services development
programme.
The environmental analysis indicates that the project would have a positive
overall benefit on public health and the environment. The operation will
enable the Republic and the City to (i) reduce pollution of the drinking water
by upgrading its water intake facilities and distribution network; (ii) reduce
pollution of the local rivers by rehabilitation of wastewater collection
network; (iv) reduce greenhouse gas emissions from the heating plants by
increasing efficiency of boilers and heating systems as a whole. The project
will meet Russian environmental, health and safety standards and will
contribute towards achieving compliance with relevant EU environmental
standards.
Temporary environmental impacts may be generated during construction and
land-take, such as increased level of noise, dust and traffic (in the City).
Such temporary impacts, however, will be minimised through the incorporation
of good management practice including forewarning and signing of works,
restriction of working hours, development of traffic management schemes
offering alternative routes to traffic and pedestrians, etc.
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Technical
cooperation:
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Loan financed TC:
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Design, Procurement and other implementation support (up to EUR 3.0 million)
Grant financing will be sought for:
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Project Implementation Unit training and project implementation support (EUR
350,000)
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Corporate development assistance for the Vodokanal and GUP ZHKH aimed to
enhancing its commercial viability and institutional capacity (EUR 800,000).
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Lender’s Supervisor (up to EUR 200,000).
Previous Technical Cooperation included:
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The Feasibility Study for the Project was prepared by Jacob Gibb under the
Joint Environmental Programme (JEP-2) framework financed by the EU
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Eugene Ofrikhter, Operation Leader: ofrikhte@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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