Project description
and objectives:
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The proposed project involves a syndicated loan to the MOSCOW INTEGRATED POWER COMPANY JSC, a joint stock company wholly owned by the City of Moscow. The proceeds of the loan will be used to finance priority capital investments to improve the municipal district heating infrastructure and services, which will improve efficiency of the operations and reduce their environmental impact in Moscow.
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Transition
impact:
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The project supports the ongoing asset renewal of the DH heating system in the capital city of Russia. The investments financed by loan proceeds are expected to reduce operating costs, making the company more cost competitive. Furthermore, the project will support a transfer of skills during the implementation phase including procurement, design, installation and contracts supervision in accordance to the best available international engineering practice.
Additionally, through a Technical Cooperation project, the Bank will assist the regulator to implement a full cost recovery end-user tariff policy with improved affordability targeting, thus reducing the need for subsidies.
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The client:
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The borrower will be the Moscow Integrated Power Company (the Company).
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EBRD
finance:
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A senior loan of RUB 7 billion financing the replacement of distribution pipes for heat and hot water.
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Total project cost:
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RUB 8 billion.
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Environmental impact:
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Screened B/1 requiring an environmental analysis of the proposed project and environmental, health and safety audit of selected facilities of the company. Rehabilitation of the district heating system should mainly result in environmental benefits associated with reduction of hot water and heat losses, and subsequently lower fuel consumption and reduced air emissions. However, there might be some environmental issues related to the disposal of construction waste, increased noise and dust levels at the construction stage. Health and safety issues are mainly related to vibration impacts and disturbance to traffic during excavations. and the potential presence of asbestos in the insulation material for the old boilers and pipes to be removed as part of the modernisation programme, and a subsequent need to have in place adequate demolition and asbestos handling procedures.
The Company will release a summary of the project outlining results of the environmental due diligence and required activities to mitigate identified impacts, locally to affected stakeholders prior to the Final Review of the Project by the Bank.
This section will be amended upon completion of the environmental due diligence.
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Technical
cooperation:
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It is foreseen that the proposed project will include further technical cooperation support:
- Advice to the Company on the development of a Corporate Development Strategy, including Capital Planning and Access to Capital Markets.
- Advice to the Tariff Regulator on tariff setting policy and compensation mechanism.
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Oxana Selska, Operation Leader: selskao@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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