Shymkent Water II

Location:

Kazakhstan

Project number:

49938

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Approval date:

04 Aug 2020

Status:

Complete

PSD disclosed:

01 Oct 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

 

Project Objectives

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.

Transition Impact

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.

Client Information

VODNYE RESURSY-MARKETING TOO

"Vodnye Resoursy Marketing" LLP, a private water utility, incorporated in the Republic of Kazakhstan.

EBRD Finance Summary

EUR 13,800,000.00

 

 

Total Project Cost

EUR 23,400,000.00

Additionality

- 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

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Company Contact Information

Mr Zhanatbek Turdaliev
tju63@mail.ru
+7 7252 321 195
www.wrm.kz
Republic of Kazakhstan, 160013, Shymkent city, 17, Ormanov street.

Implementation summary

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PSD last updated

01 Oct 2020

Understanding Transition

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

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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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