Project summary document

Project description
and objectives:

The proposed project is a second phase following the Khujand Water Supply Improvement Project Phase I which comprised water supply priority investments. Phase I is almost fully implemented.

The Khujand Water Supply Improvement Project Phase II would fund additional water supply improvements, including continuation of the network rehabilitation program, rehabilitation and capacity increase of the existing pumping stations, procurement of machinery and equipment and continuation of the metering program.
In addition to the physical investments, the project comprises institutional development.

Transition impact:

Transition Impact from Phase I will be further build on in Phase II as follows:

Implementation of the Tariff Policy developed during Phase I.

Governance in relation to the Company will be improved by the implementation of the Public Service Agreement developed during Phase I.

Transparency, participation and local democracy will be further enhanced via the expansion of the Stakeholder Participation Program.

Skill and knowledge transfer will further be enhanced during the implementation support and engineering services for the PIU.

The client:

The project consists of a sovereign loan to Tajikistan on-lent to the Soghd Province, and then further on-lent to Khujand Water Company to finance the rehabilitation of the water supply.

EBRD finance:

Sovereign loan of up to USD 2 million to Tajikistan to be on-lent to the Soghd Province and then further on-lent to the Khujand Water Company.

Grant co financing is expected to come from SECO.

Total project cost:

USD 8.8 million including related TCs.

Environmental impact:

Screened B/1.

The project will continue to improve drinking water distribution network and metering. The proposed continued rehabilitation programme is associated with limited impacts and the proposed mitigation measures e.g. environmental management plan will be sufficient. This will be formulated based on the final recommendations on the Completion Report for the first project due in March 2008.

According to the information provided by OT, there is a parallel project dealing with drinking water resources issues financed from the Tajik sources. Additional water supply will obviously result in generation of wastewater which will require adequate treatment. This is well beyond the scope of the current project but will need to be reflected in the overall investment strategy of the Client and there should be a commitment to address this issue through the subsequent investment programmes.

A Social Action Plan will need to be developed based on the outcome of social due diligence. OT will need to liaise closely with ESD to complete social due diligence prior to Final Review to comply with EBRD requirements. No other environmental issues to raise at this stage.

Technical
cooperation:

Pre-signing:

TC 1: Technical due diligence (EUR 35,000 funded by the the Bank’s own resources). Preparation of a detailed costed investment plan for the Company.

TC 2: Audit (EUR 20,000 Funded by the Bank’s own resources) Audit of the accounts of the Khujand Water Company.

TC 3: Social audit: EUR 25,000 funded by the Bank’s own resources) evaluation of social aspects of the proposed investment.

Post Loan Signing:

TC 4: Project Management and Implementation Support Services (USD 600,000): International consultants to assist the project implementation unit during the estimated three year implementation period. The consultants will provide comprehensive engineering design, tender evaluation, contract award and administration, financial control, project management, and reporting services.

TC 5: Corporate Development and City Support Programme (USD 400,000): to (i) assist the Company to implement the necessary corporate, financial and operational improvements to meet the related covenants included in the EBRD financing documents as well as ongoing corporate development, (ii) assist the City to implement the service contract developed under Phase I, and (iii) continue the Stakeholder Participation Program initiated under Phase I.

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

EBRD contact:

Catarina Hansen, Operation Leader: hansenc@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