GrCF2 W2 - Ganja Street Lighting

Location:

Azerbaijan

Project number:

52419

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

25 Jan 2022

Status:

Passed Concept Review, Pending Final Review

PSD disclosed:

30 Sep 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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.

Project Objectives

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.

Transition Impact

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.

Client Information

AZERBAIJAN SOVEREIGN

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

EUR 12,500,000.00

Total Project Cost

EUR 15,000,000.00

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

Farid Abdulzade
farid.abdulzade@gmail.com
+994222561504
http://www.ganja-ih.gov.az/index.html
Heydar Aliyev square, Administrative Building, Ganja city, AZ2000, Azerbaijan

PSD last updated

30 Sep 2021

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.

 

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