Project Description
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.
Project Objectives
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.
Transition Impact
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.
Client Information
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
EUR 2,000,000.00
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
EUR 4,000,000.00
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.
Additionality
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
Mpks51389@gmail.com
+996772030315
4, Ysmanov Street, Kadamzhai city, Batken region, Kyrgyz Republic
PSD last updated
21 Nov 2022
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.
