Belarus Water Sector Framework Third Phase

Project number:

51318

Approval date:

02 Oct 2019

Status:

Approved

PSD disclosed:

29 Jul 2019

Sub-projects signed under this framework

Translated version of this PSD: Russian

Project Description

The provision of sovereign debt facilities for an aggregate amount of up to  60 million to water utilities in cities throughout Belarus.

Project Objectives

The Bank's sub-project loans under the framework will facilitate critical water and wastewater management improvements in the participating cities, including the modernisation of water/wastewater treatment facilities, rehabilitation of the networks, modernisation of pumping stations and purchase of maintenance equipment.

Transition Impact

The transition impact of the framework remains broadly consistent with the original Belarus Water Sector Framework. The key transition impact objectives will be: (i) maintaining a full cost-recovery tariff level within affordability constraints (due to additional investments); (ii) further improvements in operational efficiency and corporate governance through sector-wide benchmarking exercises; and (iii) promoting transition to a green economy by preventing pollution and reducing ecosystem degradation.

Client Information

Republic of Belarus

EBRD Finance Summary

EUR 60,000,000.00

The EBRD loans under the framework would be provided to the Republic of Belarus and on-lent to participating water companies.

The framework would be co-financed with capital grants by international donors. The cost of each sub-project will be determined respectively.

Total Project Cost

EUR 60,000,000.00

Environmental and Social Summary

The framework is not categorised; however, each sub-project under the framework will be categorised and will undergo separate Environmental and Social Due Diligence ("ESDD"). The framework will include municipal sub-projects that will finance water supply and wastewater treatment improvements in selected cities across Belarus, and providing environmental and social benefits to the serviced population. Sub-projects will typically involve rehabilitation and modernisation of existing water and wastewater infrastructure and are expected to be categorised "B" and structured to meet the EBRD Performance Requirements. However, any sub-projects categorised "A" under the Bank's Environmental and Social Policy ("ESP") or requiring derogation to the ESP will be submitted to the Board for approval regardless of the size of the loan.

ESDD for each sub-project will be carried out by independent consultants as part of the Feasibility Study and will include a minimum assessment of potential E&S impacts and benefits, and an E&S audit of the management systems, operations and facilities of each participating city to help structure the priority investment programmes. The ESDD will also need to ascertain whether the proposed investments achieve drinking water quality and wastewater discharges that comply with local and the EU standards, and every effort will be made to achieve the highest standards possible within the borrowing capacity of the utilities and affordability limits for the population. Sub-project specific Environmental and Social Action Plans will be developed to structure the sub-projects to meet national regulations and the EBRD PRs, including the EU environmental standards; however, sub-projects in the Baltic Sea catchment area will be structured to comply with the recommendations of the Baltic Marine Environment Protection Commission ("HELCOM"), which are more stringent than the Belarusian or the EU requirements on some effluent discharge parameters.

Technical Cooperation

Pre-Signing

  • TC 1: Feasibility Studies will include technical, financial, environmental and social due diligence of sub-projects.

Post-Signing

  • TC 2: Central PIU - a centralized project Implementation Unit ("PIU") under the Ministry of Housing and Communal Services ("MHCS") to cover implentation activities of sub-projects.
     
  • TC 3: Project Implementation Support will support the Central PIU with project design work, FIDIC advisory, and construction supervision.
     
  • TC 4: Corporate Development and Social Support Programme will provide institutional development at the:

-       National level (cooperation with the MHCS): support of sector benchmarking exercises with the development of technical and operational KPIs and ranking system for water companies, and development of the national sludge management strategy;

Company level: development and implementation of the operational efficiency measures, participation in the sector benchmarking program, improvement of financial reporting and planning, improvement of environmental and social support practices.

TCs are expected to be funded by bilateral or multilateral donors and/or the EBRD Special Shareholder Fund and others.
 

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

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