Kulob Water and Wastewater Project

Location:

Tajikistan

Project number:

51436

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

02 Sep 2020

Status:

Passed Final Review, Pending Approval

PSD disclosed:

12 Dec 2019

Project Description

Provision of a sovereign loan of up to EUR 7.5 million to the Republic of Tajikistan. The loan will be on-lent to the state enterprise Kulob Water and Wastewater Services, wholly owned by the state unitary enterprise Khojagii Manziliyu Kommunali.

The sovereign loan will have two tranches: Tranche I (committed) of up to EUR 3 million to finance the rehabilitation of the water network and pump stations, and Tranche II (uncommitted) of up to EUR 4.5 million to finance the rehabilitation and modernisation of the wastewater treatment plant. Tranche I will be co-financed by a capital grant of up to EUR 3 million, Tranche II will be co-financed by a capital grant of up to EUR 4.5 million. Both grants are to be sourced from an international donor or the EBRD Shareholder Special Fund (the "SSF")

Project Objectives

The project will improve water supply and wastewater services in the city of Kulob.

Transition Impact

ETI score: 60

The proposed project's transition objectives include material improvements to the existing ineffective contractual arrangement to bring them in line with international best practice; the establishment of a municipal or regional water authority to plan and coordinate infrastructure services/investments; to enhance climate change resilience and enable sustainable and efficient use of water by rehabilitating a water treatment plant, increasing water re-use and volume of water treated.

Client Information

TAJIKISTAN SOVEREIGN

Republic of Tajikistan

EBRD Finance Summary

EUR 7,500,000.00

A sovereign loan in the amount of up to EUR 7.5 million to the Republic of Tajikistan under two tranches.

Total Project Cost

EUR 15,000,000.00

The Project is expected to be financed from two sources: (i) EBRD loan of up to EUR 7.5 million and, potentially, (ii) a capital grant of up to EUR 7.5 million from an international donor or the SSF.

Additionality

The Project is considered additional through:

-          Financing structure: financing with terms and conditions (grace period and tenor) not available from commercial sources in Tajikistan;

-          Policy, Institutional or regulatory change: designed to trigger a change in the policy and enhance practices at the sector or country level;

-          Standard-setting: helping projects and clients achieve higher standards (best international procurement standards, higher inclusion and gender standards); 

-          Knowledge, innovation and capacity building: expertise, innovation, knowledge and capabilities to strengthen the capacity of the client.

Environmental and Social Summary

Categorised B under the 2014 ESP as the Project is expected to have site-specific environmental and social impacts which can be addressed through mitigation measures. Environmental and Social due diligence (ESDD) will be undertaken by an independent consultant and will review and update the ESDD undertaken in 2014 as appropriate to the current Project's scope.  Initial screening by the Bank indicates that the key E&S impacts/risks  are likely to  be mainly construction-related and include the health and safety of workers and the public; labour; potential land acquisition and any temporary restrictions of access; increased noise, dust and vibration levels; and contractor management. Operational impacts including sustainable water use and affordability will also be reviewed.   In addition, ESDD will include assessment of the Project's compliance with national and EU drinking water and wastewater quality standards and the Client's ability to appropriately manage E&S impacts and risks during the implementation of the Project and subsequent operations.

This PSD will be updated once the ESDD results become available.

Technical Cooperation and Grant Financing

Pre-signing: (i) Technical due diligence, to support scoping and structuring of the project, financial analysis and an environmental and social assessment (estimated cost is EUR 100,000).  

Post-signing: (i) Project Implementation Support, including tender support and contract supervision (estimated cost is EUR 750,000) and (ii) Corporate Development and Stakeholder Participation Programme, including public awareness programme and improvement of equal opportunities policies and procedures (estimated cost is EUR 500,000).

Company Contact Information

Fayzulloev Abduqodir
mid_piu@mail.ru
+992372334983
Republic of Tajikistan, Dushanbe, N.Karaboyev street 56

PSD last updated

16 Dec 2019

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.

Project Complaint Mechanism (PCM)

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 accountability mechanism.

The accountability mechanism 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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