Project description
and objectives:
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The project would consist of a sovereign loan of up to EUR 3.5 million,
on-lent to the Company to finance improvements in the municipal water supply
system by extending is pipeline to a more reliable source. The objective of
the project is to enable the City water municipal Company to provide a 24/7
service to Poti inhabitants.
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Transition
impact:
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Performance improvement and commercialisation of the Company by improving
revenue collection; staffing levels; financial management and capital
investment planning; unaccounted for water; organisational efficiency; and,
customer relations.
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The new tariff policy (aiming at cost recovery levels) and installation of
meters should also create an economic incentive for the rational consumption
of water.
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Skills and knowledge transfer will take place during the Technical
Co-operation Programmes for the preparation or delivery of: a Feasibility
Study; a Corporate Development Support Programme for the Company, an
Implementation Support Programme; and engineering services for design,
procurement and supervision.
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The proposed project would bring improved standards of transparency and
governance in a number of new ways such as: requiring financial reports to be
produced to International Financial Reporting Standards; requiring
international tendering for the contracts; requiring annual financial and
health and safety reports to be produced and published; helping the Company to
create a new customer relations strategy and complaints handling procedures;
and, exposing the current management to an independent, expert review of
current operating and financial management practices along with the
development and implementation of recommendations to bring greater efficiency.
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The client:
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The Poti Water and Wastewater Company was established as a limited liability
municipal enterprise on 25 June 2002.
The Company provides water and wastewater services in the City of Poti and the
neighbouring communities with a total population of 70,000. It operates a 254
kilometre water network with one treatment plant, 38 pump stations, five
potable water storage tanks, a reservoir, and a 45 kilometre sewerage network
with 12 pumps.
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EBRD
finance:
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Sovereign loan of up to EUR 3.5 million on-lent to the Company.
City of Poti contribution of up to EUR 1 million
Grant finance of up to EUR 3.54 million
Note: the Donor of the Grant component will be identified at a later stage.
The Grant portion is needed in order to keep affordability within acceptable
levels.
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Total project cost:
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Up to EUR 8 million.
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Environmental impact:
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Screened B/0.
The project offers the opportunity to improve drinking water supply in the
City of Poti. Environmental due diligence needs to be carried out to identify
current environmental conditions and to predict potential impacts of the
rehabilitation of pumping stations and water supply network, and to assess the
ability of the project to bring the facilities towards compliance with
Georgian and EU environmental standards. It will also assess possible
environmental liabilities associated with water facilities.
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Technical
cooperation:
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The total Technical Co-operation to support the project includes:
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Preparation of a financial, technical, environmental feasibility study,
including restatement of accounts of the Company and a review of
affordability. The estimated non-reimbursable cost of EUR 300,000 would be
financed by the EU Joint Environmental Programme (EU JEP) facility
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Institution-building and training component in the form of a corporate
development support programme. Estimated at EUR 300,000, proposed as
non-reimbursable and to be funded from Trust Funds.
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Institution-building and training programme for the City, as the owner of
municipal assets to assist in project implementation. Estimated at EUR 200,000
and proposed to be non-reimbursable and funded from Trust Funds.
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Project Engineer for engineering, design, procurement and contracts
supervision. Estimated at EUR 750,000 and proposed to be non reimbursable and
funded from Trust Funds.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Levan Sharvadze, Operation Leader: sharvadl@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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