GrCF2 W2 - Mariupol Solid Waste Project

Location:

Ukraine

Project number:

51267

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

A

Approval date:

13 Dec 2023

Status:

Passed Concept Review, Pending Structure Review

PSD disclosed:

19 Jan 2022

Project Description

The provision of a senior loan of up to € 14.5 million to Communal Enterprise "Polygon TPV" (the "Company") to finance the rehabilitation and modernisation of solid waste infrastructure in the City of Mariupol. The Project is a part of the Green Cities Framework 2. The facility is designed to serve as a sector-wide catalyst for addressing environmental challenges in municipalities.

Project Objectives

The Project will address the City's urgent investment needs with respect to (i) the rehabilitation of the existing landfill, (ii) the construction of a new engineered sanitary landfill in compliance with the EU standards adjacent to the old one, (iii)  the construction of a new Material Recovery Facility ("MRF") for non-organic waste and a separate composting facility for pre-sorted organic waste that will reduce the share of solid waste going to the landfill by promoting recycling and providing a modern solid waste management infrastructure with respect to sorting and composting. The Project will ensure that a long-term, sustainable solid waste management strategy is properly implemented.

Transition Impact

ETI score: 70

The project is part of the Green City Framework 2 (GrCF2). The GrCF2 is a strategic and multi-project approach targeting environmental issues in selected large cities in our countries of operation.

The primary goal is to achieve significant environmental improvements and promote the green transition quality within the relevant cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination among various stakeholders within the relevant cities in order improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. These objectives are supported by the development and implementation of a city-specific Green City Action Plan (GCAP) identifying and prioritising environmental challenges and ways to address them through targeted investments, services and policy instruments. The project will pursue Green and Well-governed TI objectives consistent with the GrCF2 transition impact.

Client Information

POLYGON TPV CE

Communal Enterprise "Polygon TPV", a municipal company wholly owned by the City of Mariupol.  The Company is an operator of the existing landfill located at the territory of the City.

EBRD Finance Summary

EUR 14,500,000.00

Senior loan

Total Project Cost

EUR 20,000,000.00

€ 14.5 million senior loan co-financed by up to € 4.0 million investment grant from the EU Neighbourhood Investment Platform ("EU NIP") and at least € 1.5 million local contribution.

Additionality

The Bank is uniquely positioned to assist the City in addressing environmental challenges through the preparation and implementation of a GCAP.

Environmental and Social Summary

Categorised A (2014 ESP). A comprehensive Environmental and Social Impact Assessment (ESIA) has been carried out and an information disclosure package in accordance with the Bank's Performance Requirements (PRs) was prepared and included (i) Environmental and Social Impact Assessment Report, (ii) Non-Technical Summary (NTS), (iii) Stakeholder Engagement Plan (SEP), (iv) Livelihood Restoration Framework, and (v) an Environmental and Social Action Plan (ESAP). All documents have been disclosed in English and Ukrainian on the Bank's website and locally by the Client on 8 November 2021. The ESAP has been agreed with the Client to structure the Project to meet EBRD Performance Requirements (PRs). The ESIA confirmed that no significant negative environmental or social impacts are expected from the Project. Local EIA has been also developed, disclosed and is subject to approval by the national authorities.

Since 2020, the Client with the help of an independent environmental and social consultant has had a number of stakeholder meetings, at scoping and during ESIA preparation with potentially affected and interested stakeholders including members of the adjacent business and closes residents. Due to COVID-19 restrictions for public gatherings, the Client and the City revised the stakeholder engagement activities for the disclosure period and alternative engagement approaches have been identified and implemented. Details of these additional measures have been disclosed by the Client and the Bank to ensure meaningful stakeholder engagement and public consultations in line with EBRD requirements.   

As part of the ESIA preparation, several alternatives have been considered, including designs and location alternatives and the 'no project scenario'. Following the detailed analysis, the ESIA confirmed that the Project will provide significant environmental and social benefits to the City and surrounding communities through construction of a new engineered sanitary landfill in compliance with the EU standards; remediation of the existing landfill and construction of a new Material Recovery Facility ("MRF") for separated waste processing and recycling. Additionally opportunities for waste management improvement and introduction of circular economy principles on the regional level will be assessed as part of an on-going separate Technical Cooperation project supported by the EU.

The ESIA confirmed that the majority of the potential negative environmental and social impacts will be during the construction phase, but following the implementation of the mitigation measures specified in the ESAP and good construction practice, the construction effects will be temporary and are not considered to be significant.

The Project is located in a predominately industrial zone outside of the urban area of the City. Sanitary Protection Zone (SPZ) for the new and existing landfill has been reduced according to the legislation of Ukraine with the closest residential houses in 340 m distance from the new landfill and outside of the reduced SPZ.  There are not predicted to be any impacts to livelihood since current activities undertaken in the area, are not restricted under the SPZ.

The ESIA confirmed that no sensitive ecological receptors are located in the vicinity of the Site. The site is not considered to support any important populations of plant or animal species that are of increased conservation value.

Landscape and visual impact will be minimised through spatial planning of the closed existing landfill to be planted with grass, shrubs and trees also on the boundaries. Closure of the existing landfill is expected to bring significant reduction in odour emissions and modelling for the new facilities indicates that odour is unlikely to be above levels, which would cause complaint from the closest residential area.

To mitigate potential impact on the surface and groundwater during operation, provision of leachate extraction management system and treatment plant (leachate management plan) is provided as part of the Project. The Hydrological Risk Assessment (HRA) confirmed that the operational effects on hydrogeology and hydrology will not be significant, following the implementation of the mitigation measures.

The Project will also have a positive impact on the climate change mitigation with GHG emissions reduction of up to 118,000 tons of CO2 equivalent per year during the post-implementation period compared to the 'no project' scenario.

The majority of the land was already under municipal ownership and the one additional plot required will be acquired on the principle of "willing seller-willing buyer" in compliance with the national and the EBRD requirements. The ESIA identified that the current landfill is being used by approximately 10 waste pickers and a closure of this landfill as part of the project may mean a significant loss of their livelihoods. A Livelihood Restoration Framework ("LRF") has been prepared in accordance with EBRD PR 5 addressing the economic displacement issues for waste pickers. A Livelihood Restoration Plan will be further developed and implemented prior to any restriction of access to the existing landfill. 

The Company will implement the SEP and project-level community grievance mechanism to support the existing municipal mechanism. HR policies and procedures will be updated to align with PR2 and contractors will be required to have equivalent measures in place

All measures to address the potential environment and social impacts and to bring the Company's operations into compliance with the EBRD's PRs have been incorporated into the ESAP. Post-signing TCs to support with the Livelihood Restoration Plan development and implementation and introduction of circular economy principles on the regional level are included as part of the Project.

The Client will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank may also conduct monitoring visits, as required.

Technical Cooperation and Grant Financing

Pre-signing: 

Comprehensive Environmental and Social Impact Assessment along with the Feasibility Study Review funded by Government of Sweden.

Green City Action Plan (GCAP). This technical cooperation assignment also funded by Government of Sweden supports the development and implementation of GCAP for the City of Mariupol. 

Post-signing: 

Project Implementation Support Consultant will support the Company in all aspects of project implementation, including preparation of conceptual design, technical specifications, tender documentation, tender evaluation and contract finalisation reporting to the Bank. The assignment will be co-financed from the loan proceeds. 

Regional Waste Management Plan for Donetsk region along with Livelihood Restoration Plan for the Project funded by the EU Neighbourhood Investment Platform. 

Company Contact Information

Mr. Denys Kutsyi
denys.kutsyi@investinmariupol.com
+38 (099) 536 1838
https://mariupolrada.gov.ua/department/komunalne-pidpriemstvo-poligon-tpv
43 Hretska str., Mariupol, Donetsk region, 87500 Ukraine

PSD last updated

19 Jan 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

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General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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