A sovereign loan of up to EUR 12.5 million to the Republic of Azerbaijan (the "Borrower") for the benefit of the Ganja City House-Community Production Union (the "Company"). The Bank's loan is expected to be co-financed by a capital expenditure grant of up to EUR 2.5 million from an international donor.
The loan proceeds and capital grant funds will be used to finance modernisation of the street lighting networks on selected streets in the City of Ganja (the "City"), including LED luminaries, automated lighting control and monitoring systems, and pole and power cable replacement.
The Project will aim to create substantial energy savings by improving street lighting infrastructure in the City. It will also help to optimise operation and maintenance costs of street lighting assets and avoid CO2 emissions, thus enhancing service quality, environmental and public health and safety standards.
ETI score: 70
The Project will help promote the Green transition quality by achieving substantial energy savings through installing LED luminaries, which will result in similar reductions in operational costs and carbon emissions. The Project will also insure that new luminaires will meet advanced energy efficiency criteria and can be integrated in the remote control system to enable energy and CO2 emission savings through dimming.
The Project will also support the "Well-governed" transition objective by promoting a lifecycle cost assessment through Design, Supply, and Install contracts with energy performance requirements that would be one of the first to be introduced in the country.
The Borrower is the Republic of Azerbaijan represented by the Ministry of Finance. The Ganja City House-Community Production Union, a local public company under the Ganja City Executive Power, will be an implementing agency.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B in accordance with the 2019 Environmental and Social Policy. The Environmental and Social Due Diligence (ESDD) has been undertaken by independent external consultants as part of the Feasibility Study and specifically focussed on safe disposal practices of old mercury containing lamps, worker and community safety, stakeholder engagement and grievance management. The ESDD found that the E&S impacts associated with the modernisation of the street lighting infrastructure and replacing the existing mercury-based lamps with modern energy-efficient LED lamps will be mainly positive, resulting in energy savings and improved street safety and visibility conditions for the local population in the City. Potential future adverse impacts of the Project will be limited and site specific and will be addressed through appropriate mitigation measures included in the corrective Environmental and Social Action Plan (ESAP). The ESAP requires the client among other things to develop E&S management system in line with best international standards, improve human resource management practices, develop E&S Management Plans for the construction activities and the refurbishment phase for including in the tender documents and work contracts. This will cover appropriate disposal of the old mercury lamps, preventative management of health and safety risks to workers and public safety, and development of a traffic safety management plan for the refurbishment works. A non-technical summary (NTS) and a Stakeholder Engagement Plan (SEP) have also been prepared and will be disclosed by the client locally. The Bank will monitor the Project's environmental and social performance and implementation of the ESAP through annual environmental and social reports by the client as well as site visits when deemed necessary.
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are envisaged as part of the Project:
- Technical Due Diligence
- Institutional Development Study.
- Environmental and Social Due Diligence
- Project Implementation Support
- Corporate Development Programme,
Company Contact Information
Heydar Aliyev square, Administrative Building, Ganja city, AZ2000, Azerbaijan
PSD last updated
30 Sep 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.