Sakha (Yakutia) Republican MSDP GUP ZhKH

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 35294

Status Complete

Location

Russia

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 35294

Status Complete

Location

Russia

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

26 Oct 2005

Disclosure date

04 Aug 2005

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed project would involve loans to the City of Yakutsk (the City), State Unitary Enterprise “Yakutsk Vodokanal” (the Vodokanal) and State Unitary Enterprise of Communal and Housing Services (GUP ZHKH) of the Republic of Sakha (Yakutia). The project would focus on priority investments that reduce operating costs and finance general rehabilitation and upgrading of the heating and water systems in the City and smaller municipalities of the Republic of Sakha (Yakutia) (the Republic). The project would also finance institutional strengthening of service companies and the Republican Government and the municipal authorities in the City.

Transition Impact

The project is likely to have significant demonstration effects, as it will be the first long-term municipal infrastructure loan on a regional scale in the Russian Far East. The transition potential of the operation relates to optimisation of budget expenditures related to provision of communal services in the remote northern settlements with harsh climate conditions; commercialisation of water and heating services in the city of Yakutsk and northern settlements through tariff reform, optimisation of subsidies to low income residential consumers and through development and reorganisation of operating companies providing services to municipalities in the Republic on a basis of an incentive based Service Contracts. The project will also contribute towards strengthening of corporate governance standards in operating companies through introduction of IFRS for financial reporting.

The Client

The borrowers will be (i) the City; (ii) the Vodokanal; (iii) GUP ZHKH. The Republic will provide a guarantee and project support undertakings to support the project.

EBRD Finance

Lending programme to include: (i) a loan up to RUB 300 million (EUR 8.5 million) to the City; (ii) a loan up to RUB 350 million (EUR 10 million) to Vodokanal; (iii) a loan up to RUB 1000 million (EUR 28.4 million) to GUP ZHKH.

Project Cost

RUB 2,500 million (EUR 71 million)

Environmental Impact

The project has been screened B/1 requiring environmental analyses of the two components of the proposed multi-sector municipal services development programme.

The environmental analysis indicates that the project would have a positive overall benefit on public health and the environment. The operation will enable the Republic and the City to (i) reduce pollution of the drinking water by upgrading its water intake facilities and distribution network; (ii) reduce pollution of the local rivers by rehabilitation of wastewater collection network; (iv) reduce greenhouse gas emissions from the heating plants by increasing efficiency of boilers and heating systems as a whole. The project will meet Russian environmental, health and safety standards and will contribute towards achieving compliance with relevant EU environmental standards.

Temporary environmental impacts may be generated during construction and land-take, such as increased level of noise, dust and traffic (in the City). Such temporary impacts, however, will be minimised through the incorporation of good management practice including forewarning and signing of works, restriction of working hours, development of traffic management schemes offering alternative routes to traffic and pedestrians, etc.

Technical Cooperation

Loan financed TC:

Design, Procurement and other implementation support (up to EUR 3.0 million)

Grant financing will be sought for:

Project Implementation Unit training and project implementation support (EUR 350,000)
Corporate development assistance for the Vodokanal and GUP ZHKH aimed to enhancing its commercial viability and institutional capacity (EUR 800,000).
Lender’s Supervisor (up to EUR 200,000).

Previous Technical Cooperation included:

The Feasibility Study for the Project was prepared by Jacob Gibb under the Joint Environmental Programme (JEP-2) framework financed by the EU

PSD last updated

19 Mar 2019

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

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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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