Kyrgyz Water Resilience Framework

Location:

Kyrgyz Republic

Project number:

50642

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

FW

Approval date:

23 Jul 2020

Status:

Approved

PSD disclosed:

12 May 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 sovereign loans for an aggregate amount of up to €40 million to be co-financed with capital expenditure grants from international or bilateral donors for water and wastewater investments mainly in small municipalities in the Kyrgyz Republic ("KR"). The proposed Kyrgyz Water Resilience Framework ("KWSF") will continue the Bank's work under the Kyrgyz Republic Water and Wastewater Framework and its extensions, approved in 2011 and 2015.

Project Objectives

The KWRF will address medium term impacts of the COPID-19 crisis by focussing on a more secure water supply service, mainly through increasing system resilience to provide more continuous water services and to better cope with increases/changes in demand for drinking and healthcare purposes; and  increasing direct access to higher quality water which could improve hygiene and decrease the chance of infection.

 

The KWRF will streamline the Bank's institutional reform and implementation support through the State Agency of Water Resources. Commercialisation of respective utility companies will continue to be supported through tailored Corporate Development Programmes ("CDP"s).

 

 

Transition Impact

ETI score: 70

ETI score 70

The KWRF will continue to contribute to the Well-governed quality by introducing a standardised Public Service Contract ("PSC") in line with international best practice, long-term tariff policy, recommendations for strengthening of the institutional base and the revision of policies, together with implementation action plans. Sub-projects will also introduce PSCs and Stakeholder Participation Programmes ("SPPs").

 

The KWRF will also contribute to the Competitive quality by introducing Corporate Development Programme ("CDPs"), tariff increases, enhanced metering and improved collection rates in each Participating City, and by supporting the resilience of the network by strengthening capacity of water supply network and storage, increase access to higher quality of water.

Client Information

KYRGYZ REPUBLIC SOVEREIGN

EBRD Finance Summary

EUR 40,000,000.00

Total Project Cost

EUR 40,000,000.00

 €87.5 million

The sub-projects are expected to be co-financed by capital grants from international donors or the EBRD Shareholder Special Fund.

Additionality

The Bank is additional because of its:

-          Financing structure

-          Policy, sector, Institutional or regulatory change

-          Standard-setting: helping projects and clients achieve higher standards

-          Knowledge, innovation and capacity building

Environmental and Social Summary

The KWRF is not categorised under the EBRD ESP 2019. However, each sub-project under the KWRF will be categorised at CRM stage and will undergo separate Environmental and Social Due Diligence ("ESDD"). Due to limited financial resources and affordability constraints, it is anticipated that it will not be possible to structure several sub-projects to ensure full compliance with EU environmental standards regarding drinking water quality, wastewater treatment or solid waste operations. Therefore, "blanket" derogation from PR3 will be sought from the Board of Directors for the sub-projects under the New Framework. All sub-projects categorised "A" will be submitted to Board for approval, regardless of the loan's size. Adequate resources for E&S due diligence and post-signing project implementation will be required.

Technical Cooperation and Grant Financing

A comprehensive TC package is envisaged to be deployed in support of the Framework and sub-projects. Each sub-project will have individually designed pre- and post-signing TC assignments taking into account the specific needs of each client. The following TC assignments are envisaged:

 

Sub-project level:

-          Feasibility Study;

-          Audit of financial accounts;

-          Corporate Development Programme.

 

Framework level:

-          Project Implementation Support;

-          Development of Tariff Reform Recommendations;

-          Institutional Development Programme for the Water Sector.

PSD last updated

04 Jun 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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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