Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

27 Apr 1999



PSD disclosed:

20 Apr 1998

Project Description

The project will finance critical infrastructure investments necessary to improve the water supply and waste-water services in the city of Kaliningrad, and will improve the financial and operational performance of the municipal water utility company, Kaliningrad Vodokanal.
The project will improve the supply of safe and clean drinking water for the population in Kaliningrad, and lead to a significant reduction in the environmental pollution of the Baltic Sea. Further objectives are to restructure Kaliningrad Vodokanal into a financially self-sustaining and efficient utility company.

Transition Impact

The project will:
  • create the basis for Kaliningrad Vodokanal to operate on a commercially sustainable basis;
  • develop skills in Kaliningrad Vodokanal through a strong corporate development component; and
  • strengthen financial management, budgeting and fiscal administration capacity of the City of Kaliningrad.

The Client

The borrower will be the Russian Federation. The proceeds of the loan will be on-lent to Kaliningrad Vodokanal.

EBRD Finance

EBRD financing will comprise a sovereign loan of US$ 18 million (ECU 15.3 million). The project will be co-financed with the Nordic Investment Bank, the Nordic Environment Finance Corporation, the Swedish International Development Cooperation Agency and the Danish Environmental Protection Agency.

Project Cost

US$ 62.6 million (ECU 53.2 million).

Environmental Impact

The project concerns the modernisation of the water and waste-water system in the City of Kaliningrad. The project was screened B/0, requiring an Environmental Analysis, which was carried out within the framework of the project feasibility study. Kaliningrad has been identified as a priority area under the Baltic Joint Comprehensive Environmental Action Programme.
The project will bring significant environmental and public health and safety benefits to the local population, by: (i) improving drinking water quality; (ii) reducing water losses; (iii) reducing leakage of sewage into soil and groundwater; and (iv) improving the quality of discharges into public watercourses. The improvements in sewage treatment will not only be of local benefit, but will also bring about improvements in the water quality of the river Pregol and the Baltic Sea. The project will help in achieving European Union environmental standards, which cannot be met by the existing facilities.

Technical Cooperation

Technical cooperation funding of ECU 2.6 million will be provided.

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

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