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Project summary document

Project name:Neva Discharge
Country:Russia
Project number:38382
Business sector:Municipal and environmental infrastructure
Public/Private:Public
Environmental category:B
Board date:22 July 2008
Status:Signed
Date PSD disclosed:
Date PSD updated:
11 April 2008
23 April 2009
Local language translation:Перевод на русский 
Date translation disclosed:11 April 2008
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Project description
and objectives:

The EBRD is considering extending a euro-denominated senior loan facility to St Petersburg Vodokanal in the amount of up to EUR 17.5 million and a grant from the EBRD Shareholder Special Fund (“SSF”) of up to EUR 6 million. This project is part of the Neva Discharges Closure Project (“Neva Programme”), a major environmental project in the City of St. Petersburg identified and supported by the Northern Dimension Environmental Partnership (NDEP), with an overall cost of approximately EUR 560 million. The Bank will finance the Part A components of the Neva Programme (“Part A Project”) consisting of the construction of the Northern Tunnel Collector (NTC) Pumping Station and the reconstruction of the Northern WWTP (NWTP) as well as Project Engineer services. The remaining Part A Project components include reconstruction of the Central WWTP (CWTP) and connection of direct discharges.

The Bank will co-finance the Part A Project together with EIB, NIB, NDEP, St Petersburg Vodokanal and grants from the budgets of the Russian Federation and the City of St. Petersburg and other donors.

The Part B of the Neva Programme consists of the construction of the NTC second line, connection of remaining discharges and reconstruction of the second part of the NWTP and will be undertaken as soon as funding can be confirmed from budget sources.

Transition impact:

  • The Neva Programme addresses key environmental issues determined under the Northern Dimension initiative. The physical project implementation will allow the Vodokanal of St. Petersburg to move closer to the objective of significantly reducing the pollution load on the Gulf of Finland;

  • The Part A Project will demonstrate of a successful financing of municipal services without recourse to a municipal guarantee or financial undertakings from the City. This new loan is provided without financial recourse to the City.

  • Additionally the Part A Project will support the implementation of some improvements in the transparency standards of the borrower.

 

The client:

The borrower is the State Unitary Enterprise, Vodokanal of St. Petersburg.

EBRD finance:

The Bank will provide:

  • a EUR-denominated senior loan facility to St Petersburg Vodokanal in the amount of up to EUR 17.5 million; and
  • a grant from the EBRD Shareholder Special Fund (“SSF”) of up to EUR 6 million in support of NDEP.

The Bank’s transaction will be co-financed by senior loans from EIB and NIB of up to EUR 17.5 million and EUR 25 million respectively, by an NDEP grant of up to EUR 24 million and grants from other donors.

Total project cost:

The Part A Project consists of the construction of the NTC Pumping Station, connection of discharges, the reconstruction of the NWTP and CWTP as well as Project Engineer services in the total amount of EUR 187 million.

Environmental impact:

Environmental classification and rationale

The project has been screened B/0. It is expected to result in significant environmental benefits by reducing the pollution load to the Neva Bay and the Gulf of Finland. The construction works may involve some limited, localised and short-term adverse environmental impacts, which can be readily identified and assessed as well as be mitigated or prevented by adhering to good construction practices.

Information reviewed during the environmental appraisal

An Environmental and Social Analysis of the impacts of the project has been carried out by an independent consultant in accordance with the EBRD Environmental Policy requirements. The overall cumulative environmental benefits arising from the implementation of the whole NDEP Neva Discharges Closure Project has also been assessed.

Environmental and social issues

The Part A Project will close 58% of the existing municipal direct discharges and will allow for approximately 94% of the municipal wastewater generated in the City of St Petersburg to be treated in biological wastewater treatment plants fulfilling HELCOM recommendations and EU effluent standards by 2012.

The construction of NTC (Part A for which the financing has been confirmed) allows for closing 57 direct discharge sewers and bringing approximately 186,000 m3/d of municipal and 120 m3/d of industrial wastewater as well as 220 m3/d of storm water to biological treatment at NWTP. NTC will also transfer some 190,000 m3/d of wastewater from the Central WWTP (CWTP) to the NWTP, allowing for improved nutrient removal and operational performance of the CWTP. Moreover, a chemical phosphorus removal will be installed at the CWTP so as to meet the new HELCOM recommendation for phosphorus removal (0.5 mg/l).

Half of the NWTP will be upgraded within Part A investments to fulfil the HELCOM recommendations. The upgrading includes process changes within exiting aeration tanks to provide nitrogen removal. Moreover, the NWTP will also be equipped with chemical phosphorus removal. These measures will enable the NWTP to meet HELCOM recommendations by 2012.

The implementation of the Part A Project has been estimated to result in significant reduction of pollution load to the River Neva-Gulf of Finland (the Baltic Sea) water system. The biological oxygen demand (BOD) load has been estimated to reduce 7,000 t/a, nitrogen 1,060 t/a and phosphorus 860 t/a. Compared with the 2007 situation, these reductions represent approximately the following percentages of total pollution load from the City of St Petersburg:

  • 43 % of BOD
  • 12 % of nitrogen
  • 55 % of phosphorus

Given that phosphorus is the decisive pollutant affecting the water quality in the Gulf of Finland area, the overall environmental benefit of the Neva Programme is significant. The anticipated phosphorous removal, which represents 1,180,000 person equivalent, is expected to result in a significant decrease in the phytoplankton biomass in the southern coast of the Neva Bay as well as a moderate decrease on a wider area in the Gulf of Finland.

Summary of mitigation measures

An Environmental and Social Action Plan (ESAP) has been developed to help Vodokanal implement the project in an environmentally sound and sustainable manner. The ESAP includes measures for managing and mitigating the impacts of the construction activities, further enhancing the performance of the wastewater treatment plants as well as monitoring the environmental and social impacts.

Disclosure of information and consultation

Environmental information on the project has been disclosed to the public in accordance with the planning and construction procedures of Russian law. In the context of EBRD’s participation in the project, a summary of the environmental and social impacts of the project and mitigation measures has been disclosed locally.

Monitoring and reporting

Vodokanal will report to the EBRD annually on the measured environmental impacts and on the implementation of the ESAP. 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 and by conducting monitoring visits to the project.

Technical
cooperation:

None funded by the Bank.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Svetlana Radchenko, Operation Leader: radchens@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


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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