Project summary document

Project description
and objectives:

The EBRD is considering to finance the construction of a new sanitary landfill in Chakvi, which will serve for the final disposal of municipal solid waste generated by the Georgian towns of Kobuleti and Batumi. The project includes preparation of the site, construction of an access road, fencing, the initial cells, a recycling facility, an administration and laboratory building, a vehicle washing and disinfecting facility, a weight-bridge, a power substation, areas for communication and infrastructure (internal roads) and a protection zone around the site.

An Environmental Impact Assessment was posted on the EBRD website on December 22, 2008 and the Scoping document was posted on Adjara website on September 19, 2008.

Transition impact:

The proposed project will have the following transition impact:

Framework for markets - The project will be the first regional landfill fully compliant with EU standards and Georgian legislation. It will establish a model structure that could be replicated for the financing of other regional waste management companies in Georgia and create new legal and institutional structures to promote economies of scale, employ new technology and install best practice management techniques.

Demonstration effect of new products and processes - The project will put in place the first landfill in Georgia to be built and operated in accordance with applicable EU standards. Besides physical technology, the project will also help develop more public awareness of the benefits of anti-littering and recycling and through public promotion campaigns and incentives. The model’s success is expected to generate similar projects in other regions.

Setting standards - technical co-operation services will be provided to assist Adjara to establish a project company operating in accordance with the business plan and with EU standards on solid waste, and develop a plan, structures and procedures to invite private sector participation in the operation of the project company.

The client:

The EBRD loan will be provided to the Republic of Georgia and on-lent to the newly created waste management company, established for the purpose of constructing and operating the landfill. The company will implement the project and make loan repayments from its revenues. The Autonomous Republic of Adjara and the City of Batumi will enter into a project support agreement with performance undertakings to the Bank.

EBRD finance:

€3 million sovereign loan to be on-lent to the Adjara Municipal Sanitary Services Company for municipal solid waste investments.

Total project cost:

EUR 8.3 million including related technical cooperation. The project will be co-financed by EUR 3 million loan from the Bank, EUR 4.7 million grant from Swedish International Development Agency (SIDA) and EUR 0.6 million grant from ETC fund.

Environmental impact:

Screened A/1 (EBRD’s Environmental and Social Policy 2003)

The project will bring substantial environmental, health and safety benefits to the towns of Batumi and Kobuleti, the surrounding communities and the Autonomous Republic of Adjara by providing an adequate and affordable municipal waste management system which included construction of a new sanitary landfill according to national and EU standards.

However, the construction of a new sanitary landfill may be associated with a number of environmental issues and risks. An Environmental Impact Assessment was carried to assess potential environmental, health and safety issues and risks associated with the construction of a new landfill and it determined measures for their mitigation, specifically related to gas, odour and dust emission, soil and groundwater protection, leachate collection and management.

The EIA and Public Consultation and Disclosure Plan prepared for this project according to the national and the EBRD’s Public Information and Environmental and Social Policies’ requirements are currently available for public information and comments.

The EIA has identified that a number of families have houses, summer houses and/or businesses in the 500 meter sanitary zone around the new landfill site which, according to the Georgian legal requirements, will need to be considered for resettlement. According to Georgian legal and EBRD’s Environmental and Social Policy requirements, a Land Acquisition and Resettlement Action Plan will need to be prepared. It will be reviewed by the Bank and agreed with the Client on its implementation.

Information on EIA carried out for this project is available on EBRD’s web site.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

The Project has the following Technical Co-operation assignments for project preparation and implementation:

Feasibility Study and Project Preparation
EUR 351,151 – financed by the Government of Sweden

IFRS Restatement and Audit: Audit of accounts of the Solid Waste Company
EUR 49,800 – financed by the ETC Multi-Donor Fund.

Credit Analysis
Credit Analysis of the Autonomous Republic of Adjara's budget. EUR 49,300 – financed by the ETC Multi-Donor Fund

Support to the Project Implementation Unit, Engineering Design Services and Contract Supervision
This will provide a comprehensive package of technical support including support for the creation and staffing of the project implementation unit, design and engineering services, preparation of tender documents, tendering and evaluation of all goods, works and services to be financed by the Bank loan and the grant, tender evaluation and award, contract supervision, disbursement accounting and control, and technical and financial reporting to the Bank. EUR 800,000 – donor to be identified.

Corporate Development and Regional Support Programmes for the Solid Waste Company and the Autonomous Republic of Adjara
This will provide support to the Adjara government by drafting a business plan and operations manual, assisting with the creation and staffing of a new solid waste management company. The consultants will also assist the newly created Company to carry out public consultation on waste management services, launch a public awareness campaign regarding waste recycling, draft a waste disposal contracts with participating municipalities, and assist the Company to invite a public-private partnership in waste management. The consultants will also assist the Company -borrower with reporting to the Bank on operational and financial covenants and creditworthiness. The final task will be to provide training to strengthen the enforcement capacity of the Environmental Department of the Government of Adjara. EUR 609,210 – to be financed by the ETC Multi Donor Fund and the EBRD Shareholder Special Fund.

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

EBRD contact:

Paul Covenden, Operation Leader: covendep@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

Public Information
Policy (PIP):

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Independent Recourse
Mechanism (IRM):

The EBRD has established the IRM to give local groups that may be directly and adversely affected by a Bank project a means of raising complaints or grievances with the Bank, independently from banking operations.
Guidelines for Making a complaint and the Rules of procedures