Project description
and objectives:
|
The proposed project concerns a loan towards the cost of construction of the
priority waste water collection network in the town of Bijeljina in order to
prevent further pollution of underground water (aquifers) that are used as the
source of potable water, thus reducing the health hazard for the town’s
population. The project envisages simultaneous replacement of dilapidated
asbestos-cement water pipes. The project would be implemented by Vodovod I
Kanalizacija Bijeljina with support from the Bijeljina Authorities.
|
Transition
impact:
|
-
Preparation and implementation of the Financial and Operational Improvement
Programme for the company with the focus on cost reductions and efficiency
gains.
-
City of Bijeljina Credit Enhancement Programme to facilitate future borrowing
without State Guarantees.
-
Commercialisation of the water operations through introduction of a
transparent tariff policy to secure a full cost recovery.
-
Policy dialogue in regard to transfer of ownership from the central government
to the local authorities.
-
Improved procurement skills by applying international open tendering
procedures.
|
The client:
|
Vodovod i Kanalizacija Bijeljina is a joint stock company with 65% of the
equity owned by the Government of Republika Srpska, 10% owned by the pension
fund and 5% by the Restitution Fund of Republika Srpska. The remaining 20% is
owned by individuals and privatisation investment funds.
|
EBRD
finance:
|
EUR 7.0 million Sovereign Loan to Bosnia and Herzegovina to be on-loaned under
same conditions to Republika Srpska and further to the company Vodovod I
Kanalizacija Bijeljina.
City of Bijeljina will contribute EUR 4.5 million towards the overall project
cost (including taxes).
|
Total project cost:
|
EUR 11.5 million.
|
Environmental impact:
|
Screened B/1.
The project offers the opportunity to construct wastewater collection system
in the town of Bijeljina, to improve sanitation conditions and protect
groundwater resources. Environmental due diligence needs to be carried out to
identify current environmental conditions and to predict potential impacts of
the construction of the wastewater collection system, and to assess the
ability of the project to bring the facilities towards compliance with
national and EU environmental standards. It should be noted that the proposed
Phase 1 project will only involve sewerage collection and no wastewater
treatment. Therefore, it will not fully comply with the EBRD’s Environmental
Policy requirements. Moreover, the construction of the wastewater collection
system and discharging into local water bodies may be associated with
significant environmental impacts. Those will need to be adequately assessed
within the framework of environmental due diligence. The Client should commit
to carry out further investments to achieve full compliance with the EU
environmental standards.
|
Technical
cooperation:
|
TC funds are being sought for the following support:
-
Project management (design, procurement and supervision)
-
Assistance to the City of Bijeljina with a Creditworthiness Enhancement
Programme
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
|
EBRD contact:
|
Josip Polic, Operation Leader: policj@ebrd.com
|
Procurement or tendering
opportunities:
|
Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
|
General
enquiries:
|
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
|
