The proceeds of the sovereign loan to the Kyrgyz Republic will be on-lent to the city of Kadamzhai for the benefit of the municipal water company. A sovereign loan of up to € 2.0 million under the KR Water and Wastewater Framework - Extension will support the modernisation of the Kadamzhai water supply infrastructure. The loan will be co-financed by a € 2.0 million investment grant from the EBRD Shareholder Special Fund.
The Project will finance critical drinking water supply improvements in Kadamzhai, including the rehabilitation and extension of water network, supply and installation of water meters and testing equipment, reconstruction and new construction of reservoir, intake facilities and water disinfection unit, replacement of pumping equipment, construction of new wastewater treatment facilities and reconstruction and new construction of sewer collectors.
ETI score: 70
- In line with the Kyrgyz Water Sector Resilience Framework, the Project will contribute to the following transition qualities:
- Well-governed: introducing the standardised PSC, with well-defined KPIs, and introducing the Stakeholder Participation Programme;
- Competitive: through introducing CDPs, tariff increases, enhanced metering and improved collection rates, strengthening water supply network and storage capacity, and increasing access to higher quality water.
- The sub-project will also support the Framework institutional reform, which includes the introduction of a standardized tariff methodology and standardized PSCs, as well as development of recommendations for a targeted social support mechanism. Project specific CDPs will support the commercialisation through the implementation of this standardized approach. Expected Transition Impact is 70 in line with the framework approach.
KYRGYZ REPUBLIC SOVEREIGN
Kyrgyz Republic as the Borrower. The proceeds of the sovereign loan are to be on-lent to the city of Kadamzhai for the benefit of the Kadamzhai water company.
EBRD Finance Summary
A sovereign loan of up to € 2.0 million to the KR under the Kyrgyz Water Sector Resilience Framework (KWRF) to support the modernisation of the water infrastructure in the city of Kadamzhai. The loan will have a 15-year maturity, including a four-year grace period. The loan is to be co-financed by a € 2.0 million investment grant from the EBRD Shareholder Special Fund.
Total Project Cost
The Project is financed from two sources: (i) an EBRD loan of up to € 2.0 million and (ii) a capital grant of up to € 2.0 million from the EBRD Shareholder Special Fund.
The Bank will provide long-term financing, which is presently not available from commercial banks. The Bank will support the Company in achieving higher standards through its conditionalities (e.g. PP&R, ESAP, tariff increase and other covenants). CDP TC will improve the Company's institutional, operational and financial capacity. As part of the CDP TC, the client will also make use of the EBRD expertise on higher inclusion and gender standards, enhancing women's economic opportunities as part of the project.
Environmental and Social Summary
Categorised B in accordance with EBRD's 2019 Environmental and Social Policy (ESP). Key Environmental and Social (E&S) risks and impacts for each sub-project to consider will include the sustainability of the water resources, affordability, construction related risks, in particular health and safety of workers and project affected communities during construction activities, temporary access restrictions, exposure to noise, dust and vibration levels, contractor management, stakeholder engagement, grievance mechanism and emergency response including Covid-19 response.
The project will mainly have environmental and social benefits and will contribute to address the most critical drinking water and wastewater infrastructure needs including rehabilitation of water network; building of pump stations and clean water reservoirs, water intake and treatment facilities; introducing household metering; and modernisation of operational and maintenance equipment, as well as selected rehabilitation of wastewater infrastructure in one of the four Cities. The Project will promote resilience of the water supply and wastewater infrastructure to climate change through integrating specific design measures and building capacities of the operators and users to manage water resources more efficiently.
The Environmental and Social Due Diligence (ESDD) for the Project is currently being undertaken by an independent consultant as part of the Feasibility Study. Stakeholder Engagement Plan (SEP) and Environmental and Social Action Plan (ESAP) will be developed for each sub-project.
This PSD will be updated accordingly upon completion of ESDD.
Technical Cooperation and Grant Financing
The following technical cooperation (the "TC") assignments are envisaged as part of this Project:
- Pre Loan Signing:
- Feasibility Study including financial, technical, environmental and social due diligence. The assignment cost € 390,050 (for 4 projects in south region, including Kadamzhai) and was financed by the EBRD Shareholder Special Fund;
- Post Loan Signing:
- Project Implementation Support. The TC will support the Project Implementation Unit with engineering design and approval, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting. The assignment's cost is estimated at up to € 400,000, to be financed by the EBRD Shareholder Special Fund.
- Corporate Development and Stakeholder Participation Programme. The assignment's cost is up to € 250,000, to be financed by the EBRD Shareholder Special Fund.
- Non-TC: € 2.0 million investment grant from the EBRD Shareholder Special Fund to co-finance the Company's capital investments.
Company Contact Information
Mr. Abdisatar Abdyrakhmanov
4, Ysmanov Street, Kadamzhai city, Batken region, Kyrgyz Republic
PSD last updated
21 Nov 2022
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