Yuzhno-Sakhalinsk District Heating Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 42904

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 42904

Status Complete

Location

Russia

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

18 Dec 2012

Disclosure date

19 Oct 2012

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."

Translated version of this PSD: Russian

Project Description

The EBRD is considering to extend a senior loan of up to RUB 450 million (EUR 11.3 million) to OJSC Sakhalinskaya Kommunalnaya Kompaniya (the “Company”) for rehabilitation of district heating infrastructure in the City of Yuzhno-Sakhalinsk (the “City”) in the Russian Far East.

Transition Impact

Transition impact is expected to be achieved through the:

Introduction of a public service contract which will regulate the relationship between the Company (as operator) and the City (as owner) and specify the rights and responsibilities of each party to improve service levels;
Improvement in the tariff methodology to ensure achievement of full cost recovery and incentives for cost efficiency;
Demonstration of successful cost restructuring including reductions in operating and maintenance costs.

The Client

OJSC Sakhalinskaya Kommunalnaya Kompaniya is a district heating, water and wastewater utility, 51.81 per cent owned by the City and 48.19 per cent by JSC SakhalinEnergo, a regional power generating company ultimately owned by the Russian Federation.

EBRD Finance

Senior corporate loan to the Company of up to RUB 450 million (EUR 11.3 million), guaranteed by the City.

Project Cost

Up to RUB 600 million (EUR 15 million).

Environmental Impact

The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Company’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Company’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. Information on environmental and social performance and a summary of the agreed ESAP will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

The following Technical Cooperation will support the project:

Pre-signing

Environmental and social due diligence, EUR 68,950, financed by the Bank’s own resources;
IFRS Audit: EUR 48,000, financed by the Bank’s own resources.

Post-signing

PIU training and initial support, up to EUR 500,000, to be financed by an international donor;
Corporate Development Programme including Public Service Contract (PSC), EUR 250,000, to be financed by an international donor.

Transition impact

ETI Score:60

PSD last updated

01 Feb 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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