Green Cities: Chisinau Solid Waste

Location:

Moldova

Project number:

47314

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

A

Target board date:

23 May 2018

Status:

Passed Final Review, Pending Board Approval

PSD disclosed:

10 Aug 2017

Translated version of this PSD: Romanian

Project Description

The project comprises a sub-sovereign loan of up to EUR 10.5 million to Regia Autosalubritate, a municipal solid waste management company. The loan will be guaranteed by the municipality and is expected to be co-financed with an EIB loan of up to EUR 10.5 million and an investment grant of up to EUR 5.0 million from an international donor.

The proceeds of the loans and grant will finance a priority investment programme in solid waste management, including: i) the closure of the existing dump site in Ciocana; ii) the re-opening and upgrading of the currently non-operational landfill site to EU compliance, including associated infrastructure (leachate treatment plant, landfill gas collection, access road); iii) the rehabilitation of the existing waste collection and transportation; and iv) the upgrade of the transfer station and introduction of a waste sorting line.

Project Objectives

The project aims to contribute to an improved level of solid waste services and overall improved environmental situation in Chisinau.

Transition Impact

Good.

The project is part of the Green Cities Framework, a strategic and multi-project approach targeting environmental issues in selected large cities in the EBRD's countries of operation.

  1. Green:  The primary goal is to achieve significant environmental improvements and promote the green transition quality in Chisinau.
     
  2. Well-governed: The Green Cities Framework also aims to build necessary capacity and facilitate better coordination and buy-in among various stakeholders within the relevant cities in order to improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. These objectives are supported by the development and implementation of a city-specific Green City Action Plan (GCAP) identifying and prioritising environmental challenges and ways to address them through targeted investments, services and policy instruments, including capacity building.

 The Chisinau Solid Waste project will contribute to an improved level of solid waste services, and improve the environmental situation in the city of Chisinau.

Client Information

CHISINAU SOLID WASTE COMPANY

The borrower will be Regia Autosalubritate that is fully owned by the City of Chisinau and responsible for collection, transportation and disposal of municipal waste as well as for operation of landfills. It employs 341 people and collects 1.6 million tonnes of waste per year with up to 65 per cent organic and 23 per cent recyclable . Collection and transportation is carried out using a fleet of 55 specialised vehicles. Sorting operations are limited to glass and plastic. It is a self-financed legal entity and includes all the property and operational assets required for its functioning.

EBRD Finance Summary

EUR 10,500,000.00

Total Project Cost

EUR 26,000,000.00

Environmental and Social Summary

Categorised A (ESP 2014). The project involves upgrading of the existing non-operational Tintareni landfill to EU standards and recommencing its operations as well as closing down the temporary Ciocana landfill. It has required a formalised and participatory Environmental and Social Impact Assessment (ESIA) process, because the potentially significant adverse future environmental and/or social impacts could not readily be identified or assessed at the time of categorisation. The ESIA disclosure package including the ESIA study, Non-Technical Summary (NTS), Stakeholder Engagement Plan (SEP), Environmental and Social Management Plan (ESMP), Environmental and Social Action Plan (ESAP), Livelihood Restoration Framework (LRF) and Hydrogeological Risk Assessment (HRA) have been disclosed in Romanian and English languages for public review and comments on 10 August 2017 locally and at the client's and the EBRD's websites.

The Bank's Environmental and Social Due Diligence (ESDD) for the project has included a review of the ESIA documents, public disclosure and consultation process and an environmental and social (E&S) review of the existing waste management facilities and operations. The national Environmental Impact Assessment (EIA) in the format required by the Ministry of Environment (MoE) has been submitted to the authorities for consideration as part of the permitting process.

ESDD has concluded that the project will result in a number of  E&S benefits, including improved residential waste collection services and increased recycling of waste; landfill operations with strict environmental, health, safety and social management controls; closure of the Ciocana dump site and other small dumpsites that will reduce and minimise pollution to the environment; construction of an improved access road and road maintenance that will also benefit local community; and enhancement of livelihoods and other benefits for the residents of Tintareni.

The non-operational Tintareni landfill site is located in a rural setting with agricultural land surrounding the site. No houses are located adjacent to the landfill and the nearest settlements are approximately 2.7km to the west and the south of the site (Cretoaia Village and Geamana respectively). The landfill site is fenced with a single point of access with a supervised gate. The landfill has a leachate collection and storage system in place. Leachate continues to be recirculated by collection from the underground tanks into road tankers with the contents emptied at the top of the landfill. There is a gas collection and utilisation system which is used to generate electrical energy, which is fed into the grid. The excess gases are flared.

The operations of Tintareni landfill started in 1991 and were put on hold in 2010 due to complaints in the village regarding alleged pollution of groundwater. To fully assess the situation and associated risks, the Bank commissioned detailed geology and hydrogeology surveys and a quantitative Hydrogeological Risk Assessment (HRA) to establish the potential for any uncontrolled emissions to migrate to local receptors, including surface and groundwater abstractions. The results of HRA indicate the risk of the current landfill to the identified receptors is low, although some elevated concentrations of pollutants (ammoniacal nitrogen, chloride, sulphate and fluoride) was identified in the underlying groundwater and the immediate vicinity of the landfill. Theoretical discharges have been assessed and they do not represent a significant risk to receptors located more than 500m from the site. Following the HRA, a number of recommendations were proposed that were included in the ESAP. The landfill is to be subject to additional engineering works and management controls which have the potential to improve the current site and reduce leakages from the current waste body. Prior to the reopening, the landfill requires upgrades to ensure the facility is aligned with the EU Landfill Directive. Elements of this upgrade include a new leachate treatment plant; installation of interim lining; stabilising the embankment; re-profiling of slopes; water collection systems; a new gas collection and utilisation system; installation of monitoring wells; and reconstruction of the access road.

A closure plan has been developed for the Ciocana dumpsite, which has been in use since the closure of Tintareni Landfill in 2010. The closure plan includes measures including surface sealing; leachate drainage system; landfill gas management system and flare station; surface water management system; monitoring wells; access road and perimeter fence; topsoil and landscaping; and aftercare monitoring.

ESDD identified that the Ciocana dumpsite is being used by informal waste pickers. As such, it is estimated that approximately 50 waste pickers and their households will no longer be able to engage in this activity after the waste dump is closed. Of the estimated 50 waste pickers, only 15 to 20 regularly engage in waste picking, while the others visit the site occasionally. To compensate for the loss of livelihoods of the waste pickers, a Livelihood Restoration Framework (LRF) has been developed in compliance with Moldovan legislation and the EBRD Performance Requirement 5 (PR5). The LRF presents activities, which will be undertaken by Regia Autosalubritate, such as consultations with affected people, the establishment and implementation of a project grievance mechanism, carrying out a census and establishing a cut-off date for eligibility for assistance, as well as monitoring the implementation of livelihood restoration measures and reporting on progress and outcomes to the EBRD.

A Stakeholder Engagement Plan (SEP) has been developed for the project with the objective of identifying key stakeholders and ensuring that they are informed in a timely manner of the potential impacts of the project. The plan also presents a formal grievance mechanism to be used by stakeholders for dealing with complaints, concerns, queries etc. It will be reviewed and updated on a regular basis. If activities change or new activities relating to stakeholder engagement commence, the SEP will be brought up to date. The SEP will also be reviewed periodically during project implementation and updated as necessary.

ESAP has been prepared to address the findings of the ESDD and improve EHSS performance and risk management as well as to structure the proposed waste operations to comply with the EBRD performance requirements, including EU standards and relevant national regulatory requirements. Key measures under the ESAP include: development and implementation of an environmental and health and safety management system in line with internationally recognised ISO14001 and OHSAS18001 standards; ensuring all necessary environmental permits are obtained for the implementation of the project; development of  measures to effectively contain waste and waste leachate in vehicles during transportation to Tintareni landfill, the transfer station and sorting station; ensuring the landfill design and operating procedures comply with the EU Landfill Directive; reinforcing stability of the landfill and the dumpsite; incorporating EHSS conditions and mitigation measures into tendering and selection process of contractors and ensuring contractors develop and implement a Construction, Environmental Management Plan; implementation of  regular contractor inspections / audits and meetings with contractors; implementation of the Ciocana Dump site closure plan; undertaking a Health and Safety (H&S) risk assessment; development of formal employment policies; implementation of the SEP and grievance mechanism if there are complaints; disclosure of project documentation and undertake further stakeholder consultation; implementation of the LRF; development of a monitoring protocol for affordability and procedure; implementation of a wider program for raising public awareness of waste management; and ensuring that all community actions to benefit the residents of Tintareni village are implemented, as agreed with the community.

During implementation the client will be supported and supervised by consultants funded by technical cooperation. EBRD will be monitoring the implementation of the project and of the ESAP as well as the environmental and social performance of the project through reviewing the client's annual environmental and social reports and undertaking monitoring visits by EBRD environmental and social specialists as needed.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

Feasibility Study, consisting of full financial, technical and economic due diligence of the Project. Cost of the TC assignment is EUR 390,729, financed by the Government of Sweden.

Environmental and Social Impact Assessment (ESIA) financed out of the Bank's Shareholder Special Fund (SSF) in amount of EUR 249,160.

Post Loan Signing the following TCs will be implemented:

  • Project Implementation Support.  The TC will support the PIU with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting.  The estimated cost of the assignment is EUR 550,000, with financing source to be defined.
     
  • Corporate Development and Stakeholder Participation Programme.  The TC will (i) support institutional development in the form of operational improvements and financial improvements to secure sustainability of solid waste management services and PSC implementation;  and (ii) implement a SPP, aimed at enhancing public ownership by encouraging recycling, re-use and safe disposal, increasing public participation in the provision of sustainable waste management practics and raising public awareness on issues related to the project implementation and resource efficiency.  The estimated cost of the assignment is EUR 300,000, with the financing source still to be defined.

Company Contact Information

Mrs. Mariana Nazarenco
regia-auto@mail.ru
tel. +373 22 740919; +373 22 746842
14, 27 Martie 1918 Street, Chisinau, MD-2069 Moldova
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.