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Description of the project
Kazan Municipal Water and Wastewater Management Utility “Kazan Vodocanal” has
requested the European Bank of Reconstruction and Development (the “EBRD”) to
provide financing to support the priority capital investments to improve the
municipal water and wastewater infrastructure and services for the City of
Kazan. The Project includes 3 investment components:
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Rehabilitation and of the Main Wastewater Treatment Plant to enhance its
operational efficiency and to improve sludge dewatering
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Rehabilitation of Iskohz Wastewater Pumping Station
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Construction of new networks in a new housing area
Environmental classification and rationale
The EBRD has classified the project B/1 for components 1 and 2. Component 3 of
the priority investments programme has been classified as IEE and will require
further environmental investigations prior to disbursement of the Bank’s funds
toward this component. The level of further investigations will depend on the
location and scale of the new networks. The project is associated
predominantly with the rehabilitation of the existing structures. This will
result in limited adverse environmental impacts and in significant
environmental benefits, which can be readily identified and quantified in an
Environmental Analysis. As this project involves existing facilities, and
environmental audit has also been undertaken.
Information reviewed during the environmental appraisal
The environmental appraisal has been based on the review of an Environmental
Audit and Environmental Analysis sections of the Feasibility Study of Kazan
Municipal Water and Wastewater Services, prepared by Poyry Environment in
January 2007 (Final Report).
Environmental issues
The Environmental Audit has identified that Vodocanal’s operations are
generally well organized and managed. The environmental, health and safety
(EHS) issues are addressed and dealt with systematically, and a clear system
of allocation of EHS responsibilities exists, in particular in the areas
related to waste management, chemicals management and laboratory, garage and
workshop operations. The existing EHS management system is compliant with the
applicable Russian laws and regulations.
Major issues of environmental concern are as follows:
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Inadequate sludge disposal and treatment at the disposal areas, sludge fields
and , landfill. The sludge fields are almost full and if disposal is
continuing there one can expect a breakdown of the embankments of the sludge
ponds resulting in sludge flowing into the surrounding with residential areas
and river Volga. The disposed sludge at the sludge fields is an environmental
and safety hazard for humans and animals in the area, because it is not fenced
and one cannot walk on the surface of the sludge;
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The sludge fields generate a considerable amount of methane emissions into the
atmosphere as they are now. Proper management of the sludge would reduce these
emissions;
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There is also an environmental risk of wastewater exfiltration from the sewer
system and overflows from pumping stations of poor condition, which pose a
significant risk of soil contamination and a hygienic risk to the population
in the vicinity. Further measures and financial resources would be required to
reduce the environmental risks caused by that.
Carefully selected PIP measures will partly address these environmental issues
of concern by improving overall condition at the main WWTP and upgrading the
pumping station. The environmental investigations showed that the project
would result in significant energy efficiency and environmental improvements,
and that any adverse environmental impacts would be limited. The project has
been structured to meet Russian and EU environmental standards and adequate
mitigation measures have been incorporated in the project design. However, it
should be noted that the project alone will not be able to bring the
operations of Vodocanal into full compliance with the EU environmental
standards, as much greater financial resources would be required for that
(estimated at Euro 600 million). Further projects focussing on sludge disposal
and management issues are under consideration.
There are no adverse impacts associated with the implementation of the
Priority Investment Programme. Construction-related impacts are likely to be
localised, short term in nature and they will be efficiently prevented or
mitigated by applying international construction practices and planning. The
project will improve wastewater collection and treatment facilities and result
in better quality of effluent and energy savings. The operation will
significantly contribute to decreasing the level of polluting discharges into
the Volga River and the Caspian Sea basin.
Summary of mitigation measures
An Environmental Action Plan (EAP) has been developed to help the Company and
the City (i) to implement the priority investment Project in the
environmentally sound and sustainable manner as well as (ii) to guide them
towards a long term goal to provide a wastewater service which meets the EU
and national Russian standards for effluent discharges. The EAP will identify
further measures that would be needed for the existing water and wastewater
treatment facilities to meet applicable Russian and EU environmental standards
and help prioritising the most cost-efficient measures to improve
environmental, health and safety conditions in water and wastewater management
in the City of Kazan.
One of the EAP measures will also address existing sludge disposal and
management problems by introducing temporary environmentally sound and safe
measures until a proper solution for final disposal can be arranged.
Disclosure of information and consultation
Environmental information on the project will be disclosed to public in
accordance with the planning and construction procedures of Russian law. No
environmental impact assessment has been required for the planned scope of the
project under components 1 and 2. Environmental information for the Component
3 of the priority investments programme will be disclosed at a later stage
once more information on the location and scale has been provided to the Bank
and appropriate environmental investigations have taken place. In the context
of EBRD’s participation in the project, this environmental summary will be
disclosed locally at Kazan Vodocanal and the City of Kazan’s offices and local
media as well as in English on EBRD website at www.ebrd.com.
Monitoring and reporting
Kazan Vodocanal will continue monitoring its performance in accordance with
the Russian regulatory requirements. The Company will report to the EBRD
annually on the measured environmental impacts and on the implementation of
the EAP mitigation measures. The Bank will evaluate the project's compliance
with the applicable environmental and social standards during the lifetime of
the project by reviewing these reports. The EBRD may also conduct monitoring
visits to the project when and if deemed appropriate.
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