GrCF - Tbilisi Solid Waste

Location:

Georgia

Project number:

47582

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

11 Sep 2018

Status:

Disbursing

PSD disclosed:

23 Jul 2019

Translated version of this PSD: Georgian

Project Description

The investment will address the priority needs of Tbilisi City identified under the Green City Action Plan. Hence the Project is a follow-on investment, proposed under Green Cities Framework . It will help to satisfy the immediate needs of the solid waste management company and considerably improve the sector in Tbilisi. 

The loan of up to €15 million will be used to finance the acquisition of solid waste operation and maintenance vehicles and machinery, upgrade of the existing transfer station and rehabilitation of the operational landfill in Tbilisi.

Project Objectives

The project aims to contribute to an improved level of solid waste services and overall improved environment in Tbilisi.

Transition Impact

Strong Good

The project will have the following Transition Impact: 

Green. By improving the waste collection system the Project will address a key environmental priority identified in the Green Cities Action Plan. The Project will result in improved solid waste management and reduce the negative impacts of waste collection on the environment through purchasing low-emission vehicles and increasing the efficiency of waste collection route planning.

The Project also meets the framework criteria for the reduction of local pollution or Green House Gas (GHG) from the relevant municipal activity by at least 15 per cent. Once implemented the Project is expected to reduce CO2 emissions from average 9,596 tonnes per year to 7,895 tonnes per year, a reduction of approximately 18 per cent.

Well-governed. The Project is a follow up investment identified and recommended by Tbilisi Green Cities Action Plan which was approved by the City Council in September 2017. The purpose of the Green Cities Action Plan is to measure, benchmark and prioritise environmental issues and identify appropriate mitigation actions and investments. The Green Cities Action Plan has identified that the City requires modernisation of waste collection equipment; improvement of regulatory and planning capacity and an awareness raising campaign for the general public to reduce waste generation. The Project will address these issues through the development and implementation of the Stakeholder Participation Plan and of Municipal Solid Waste Strategy. These initiatives will review the performance of the waste sector and develop an action plan to improve management and efficiency. The project and strategy is expected to achieve financial and /or operational improvements equivalent to a 10 per cent reduction in costs.

Client Information

GEORGIA SOVEREIGN

Georgia, Tbilisi City Municipality and Tbilservice Group Ltd.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 15,000,000.00

Environmental and Social Summary

Categorised B (ESP 2014). 

Public Information Policy comprising the acquisition and operation of solid waste vehicles, upgrade of the existing waste transfer station and leachate collection and treatment system at Tbilisi landfill is expected to have mostly beneficial effects. The identified environmental and social issues will be managed through implementation of an ESAP. The Project has 100per cent GET component.

The project will support overall improvement of waste management practices,  enhance people's daily lives by reducing health hazards caused by unsanitary waste handling and reduce the risk for soil and groundwater contamination by improving leachate collection and treatment. The Environmental and Social Due Diligence ("ESDD") has been undertaken by an independent Consultant as part of the Feasibility Study (FS) and included a review of the applicable environmental, safety and social requirements, current waste management practices as well as an analysis of environmental and social impacts and benefits associated with the Project to ensure the proposed specifications for the equipment will meet EU/BAT requirements.

It has been established that the major potential E&S issues associated with the current operations and the Project include: lack of the proper environmental, health and safety, and HR management system in place, emissions and ground water contamination, community and livelihood impacts, safety and security, waste management, impacts during constructions phase, such as noise, disturbance, contractors management and supply chain.

The Project will be implemented on a landfill that has been initially designed to meet the EU design standards. Currently, no waste segregation practices are implemented. Although in the past the Company attempted to introduce waste recycling into their waste management system, without a Waste Management Strategy (WMS), they could not succeed. The Project will enable development of the WMS through a TC and its adoption will be covenanted. This will enable the Company to achieve all the requirements of EU waste management directives within the timeframe defined under the WMS.

An ESAP has been developed to address the identified issues and includes, inter alia, development and implementation of the comprehensive environmental, health and safety, and social management system, environmental monitoring system, application of the BAT (best available technologies) for the development of new facilities,  introduction of the grievance mechanism, resource efficiency, full implementation of the national ecological expertise requirements, landfill gas collection system and sewage treatment plan installation with support by the City, closure and remediation of the identified sites, improvement of the workers and public safety arrangements. Additionally, a Livelihood Restoration Framework has been prepared to address the issue of the illegal waste pickers.

A disclosure package consisting of Non-Technical Summary and Stakeholder Engagement plan has been developed for the Project. The Bank will monitor the Project performance through the Annual E&S Reports and site visits when deemed necessary.

Technical Cooperation

A comprehensive TC package is envisaged to be deployed in support of the Project. The following TC assignments are envisaged: 

Pre-Signing:

Feasibility Study including technical, financial and economic due diligence. The total cost of this  assignment is € 249,925, financed by the Government of Austria.

Post-Signing:

- Project Implementation Support to assist the Company with preparation and evaluation of all tenders, contract award and administration. The cost of this assignment is € 388,000,  financed by the EBRD Shareholder Special Fund (the "SSF").

- Stakeholder Engagement and Stakeholder Participation Programme to assist the Company to raise public awareness and implement a Stakeholder Engagement Plan. The estimated cost of the assignment is up to € 200,000, expected to be financed by the EBRD SSF.

- Municipal Solid Waste Strategy to support the City with the development and implementation of an integrated municipal waste management strategy. The estimated cost of the assignment is up to € 500,000, expected to be financed by EU-funded Municipal Project Support Facility ("MPSF").

Company Contact Information

Lasha Kajaia
l.kajaia@tbsg.ge
995 32 2611837
tbsg.ge  
7 Kakheti Highway, 0182, Tbilisi, Georgia

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

Share this page: