The provision of a a local currency loan (equivalent to €2.5 million) to Vodnye Resoursy Marketing for the rehabilitation of water/water utilities in the city of Shymkent. It complements the original loan of €11.3 million signed in 2018.
The Project aims to improve water and wastewater system in Shymkent through the implementation of the Priority Investment Programme (the PIP). The PIP includes construction of a new water intake facility and water and wastewater networks rehabilitation.
The objective of the Project is to improve the quality of service, increase the coverage area for water and wastewater service provision, reduce accidents and breakdowns on the networks, and cope with increasing volumes of both water and wastewater.
ETI score: 60
- Competitive, on the back of further commercialisation efforts stemming from operation and financial improvement measures;
- Well-governed, through improved tariff structures and contractual arrangements.
VODNYE RESURSY-MARKETING TOO
"Vodnye Resoursy Marketing" LLP, a private water utility, incorporated in the Republic of Kazakhstan.
EBRD Finance Summary
Total Project Cost
- Terms: Currently no long-term financing is available for the sector in Kazakhstan.
- Attributes: As a Framework sub-project, it will contribute to the GOK's efforts in reforming the sector at the national level.
- Conditionalities: the EBRD covenants on E&S compliance and IFRS audit go beyond local requirements.
Environmental and Social Summary
Shymkent Water II Project is categorised B in accordance with the Bank's 2014 Environmental and Social Policy. The Environmental and Social Due Diligence carried out for the existing Shymkent II project covered the components to be financed under Tranche 3 and confirmed that the E&S impacts associated with the proposed investments would be mainly positive. The impacts would result in reduced water losses from leakages and breakdowns, improved quality and reliability of water supply services, improved efficiency and quality of wastewater collection and treatment services, and overall further improvements to public health and safety. The Project's potentially adverse future impacts will be limited and site specific. They will be associated mainly with the construction components and will be addressed through the appropriate mitigation measures included in the Environmental and Social Action Plan (ESAP).
Past Annual E&S Reports confirm the Client's good E&S performance and the ESAP's timely implementation. The Company has also provided their Covid-19 response update via a separate Questionnaire and that is deemed adequate.
The Project and the Client will continue to be closely monitored by the Bank through annual monitoring reports, ESAP implementation, and monitoring visits as and when deemed necessary.
Technical Cooperation and Grant Financing
Company Contact Information
Mr Zhanatbek Turdaliev
+7 7252 321 195
Republic of Kazakhstan, 160013, Shymkent city, 17, Ormanov street.
PSD last updated
01 Oct 2020
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