Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

04 Mar 2008



PSD disclosed:

31 Jul 2007


Anton Dan-Chin-Yu, Operations Leader


Country: Russia
Project number: 37470
Business sector:  
Public/Private: Private
Environmental category: B
Target Board date: 4 Mar 2008
Status: Signed
PSD disclosed: 31 July 2007

Project Description

The proposed project is a syndicated loan facility to Rosvodokanal Group (“RVK”), one of the first Russian private operators in the water supply and waste water treatment sector, to finance rehabilitation and upgrade of the water and wastewater infrastructure in Krasnodar, Kaluga, Tymen, Orenburg, Barnaul as well as new acquisitions of water companies. Loan proceeds will be also used to finance Training and Awareness Programme and to assist the client with investment programme development.

Transition Impact

The project will demonstrate development and implementation of a new model contractual framework based on best standards, which could be used in other projects involving private operators in the Russian communal services sector. This transaction will also contribute to increased private sector operation through supporting one of the first private operators in Russia. Additionally, the transaction aims to increase transparency and improve corporate governance standards in the sector through introduction of corporate governance improvements and more transparency through IFRS accounting and reporting standards in RVK.

The Client

RVK Group will be the Borrower.

EBRD Finance

Up to RUB 5.6 billion loan facility (equivalent to EUR 162 million) to RVK of which 50% will be syndicated. 

Project Cost

RUB 16.7 billion (equivalent to EUR 484 million).

Environmental Impact

Screened B/1. Key environmental issues associated with this project include compliance with water quality and waste water discharge standards, generation and disposal of the construction waste; issues associated with the maintenance of facilities and related to cleaning of pipes and wastewater collection and treatment facilities and disposal of sludge, monitoring of the structural integrity of water pipes and wastewater collection systems. Other environmental issues are related to the capacity of the Company to manage environmental issues at the corporate level.

The environmental due diligence showed that the proposed investment programmes provide for considerable modernisation of the existing water and waste water facilities. The due diligence also indicated that RVK at this stage delegates environmental and social management to its subsidiaries and there is no consistent approach and very limited co-ordination at a corporate level. As a result of the due diligence, an Environmental and Social Action Plan (ESAP) has been agreed with the Company. 

The key elements of the ESAP include the following:

(i) Establishment of an effective corporate organisation for an Environmental and Social Management System (ESMS);

(ii) Development and Implementation of a corporate ESMS;

(iii) Development and implementation of an emergency preparedness and response programme;

(iv) Development and implementation of a community engagement and communication programme;

(v) Addressing through the investment programme key areas of current non-compliance with national environmental, health and safety standards. 

The adoption and implementation of the ESAP which will be covenanted in the Loan Agreement will allow for significant improvement of environmental and social management practices and compliance with national EHS standards.

Technical Cooperation


Company Contact

Elena Ustinova, Head of Project Finance Department 2nd Zvenigorodskaya 13-15 Moscow Russian Federation

Tel: +7 495 514 0211


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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