Project description
and objectives:
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The proposed project would involve a loan to Novogor-Prikamie, a limited liability company existing under the laws of the Russian Federation. Being one of the first private operators in municipal services sector in Russia Novogor-Prikamie operates municipal water and wastewater system in the city of Perm. The project would focus on priority investments into essential infrastructure assets with the aim to enhance efficiency, quality, and cost effectiveness of provision for municipal water and wastewater services to the residents of Perm.
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Transition impact:
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The main transition impact of the Bank’s involvement lies in the adjustment of the existing long term lease agreement between the City of Perm and Novogor Prikamie with the objective to bring it in line with the international practice. Such adjustment will cover tariff policy, performance benchmarking, transparency, incentives and other related issues from the perspective of providing an incentive based environment for private operator as well as sufficient regulatory oversight for public authorities. A revised contract will provide the private operator with sufficient incentives to improve efficiency of service provision and make such contract attractive for long term commercial financing, which will be create a substantial demonstration impact on the sector development.
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The client:
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Novogor-Prikamie
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EBRD finance:
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The loan up to RUB 1,000 million (equivalent to ~ EUR 28.6 million) to Novogor-Prikamie.
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Total project cost:
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RUB 1,515 million (equivalent to ~ EUR 42.2 million).
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Environmental impact:
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The project has been screened B/1.
The project presents significant environmental opportunities to improve the quality of Perm’s drinking water and effluent and reducing pollution of the rivers Kama, and Volga and the Caspian Sea.
The environmental due diligence will assess the ability of the selected projects to bring the facilities into compliance with applicable Russian Federation and EU environmental standards. It will also assess possible environmental liabilities associated with current assets of the Water Company: potable water production and distribution, as well as wastewater collection and treatment facilities.
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Technical
cooperation:
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The Feasibility Study for the Project was prepared by COWI Consult International and was financed by the company.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Please contact Eugene Ofrikhter (see below).
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EBRD contact:
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Eugene Ofrikhter, Operation Leader: ofrikhte@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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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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