Moldova Solid Waste Project

Location:

Moldova

Project number:

52512

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

27 Apr 2022

Status:

Concept Reviewed

PSD disclosed:

04 Oct 2021

Project Description

A sovereign loan of up to EUR 25 million to the Republic of Moldova.

The proposed investment (the "Project") will finance priority investments to improve solid waste management services across the country, establish integrated solid waste management systems in the participating Waste Management Regions in line with Moldova's National Waste Management Strategy (the "NWMS") and the country's undertakings under the Association Agreement with the EU. The Project is an important step towards sustainable solid waste management services in Moldova.

The loan will be provided in several tranches. It is envisaged that Tranche 1 will be committed at loan signing and will co-finance investments in Waste Management Region 5, which includes Ungheni, Nisporeni and Calarasi Rayons ("WMR 5"). Subsequent tranches will finance WMRs to be proposed by the Moldovan Government and validated by feasibility studies.

Project Objectives

The Project aims to improve solid waste management services in the participating Waste Management Regions across the country, establish integrated solid waste management systems and address environmental challenges.

Transition Impact

ETI score: 60

ETI 60

The Project will support the Well-governed quality through the introduction of cost recovery charges for the users of infrastructure and adoption of Public Service Contracts ("PSC") to establish transparent contractual arrangements for solid waste service provision.

The Project will also promote the Green quality by introducing new EU environmental standards in areas where they have not previously been met and will bring substantial environmental benefits with reduction in carbon emissions and energy savings. The Project aims (i) to promote resource efficiency by introducing sustainable waste management practices through the closure of existing dumpsites, construction of sanitary landfills designed to EU standards; and (ii) to contribute to greenhouse gas emissions savings through landfill gas collection and utilisation.

Client Information

MOLDOVA SOVEREIGN

  • Borrower: Republic of Moldova, represented by the Ministry of Finance. Project implementation will be coordinated by the Ministry of Environment, which is the leading state authority developing waste management policies and regulations.
  • Beneficiaries: Local authorities and operators of solid waste management systems.

EBRD Finance Summary

EUR 25,000,000.00

A sovereign loan of up to EUR 25 million to the Republic of Moldova. The loan will be provided in several tranches. Each tranche will finance priority investments in one or several WMRs.

Total Project Cost

EUR 103,000,000.00

The total capital expenditure is expected to be of ca. EUR 103 million. The EBRD loan will be co-financed by a EUR 25 million loan from the European Investment Bank ("EIB"). The Project is also expected to be co-financed by capital grants from international donors and by the Borrower.

Additionality

The Bank is additional because of its:

  • Financing Structure: EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project.
  • Risk mitigation: EBRD helps the client to mitigate carbon transition risks and take climate action, such as to move along a low carbon transition pathway.
  • Policy, sector, institutional, or regulatory change: EBRD's involvement in a project is designed to trigger a change in the policy, sector, institutional or regulatory framework, or enhance practices at the sector or country level (through the introduction of cost reflective tariffs for solid waste management).
  • Standard-setting (helping projects and clients achieve higher standards): Client seeks/makes use of EBRD expertise on corporate governance improvements, including for climate risk management. Client seeks/makes use of EBRD expertise on best international procurement standards.
  • Knowledge, innovation, and capacity building: EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.

Environmental and Social Summary

Categorised B (2019 ESP) and High-Medium risk due to the potential environmental and social impacts associated with landfill projects and the undefined scope of future tranches. Key E&S risks and impacts to consider include the need to ensure that the Project is designed in accordance with EU standards, that existing dumpsites are properly closed and that impacts on local communities and potential waster pickers are minimised. The expansion of recycling and the upgrading of landfill provision is expected to result in significant environmental benefits. Due diligence for the first tranche will be undertaken by an independent consultant and will include an appraisal of the Project and a gap analysis of the existing feasibility study and environmental assessment. Separate due diligence for future tranches will be defined as the scope becomes known.

Technical Cooperation and Grant Financing

It is envisaged that each tranche where EBRD undertakes lead-IFI role will benefit from individually designed pre- and post-signing TCs. Certain assignments may be combined for multiple tranches/WMRs to achieve economies of scale where appropriate, typically these will include, but not limited to:

Pre-signing:

  • Feasibility Studies / Gap-Analysis of existing Feasibility Studies.

For the WMRs covered by existing feasibility studies, the Bank will engage an independent consultant to address any information shortcomings, areas of relevance to the Bank. For the WMRs not yet covered by any existing FS, an affordable and bankable investment programme will be developed in line with EBRD requirements. The cost of each assignment is expected to be up to EUR 0.5 million per Tranche, envisaged to be financed by an international donor or the EBRD Shareholder Special Fund (the "SSF").

Post-signing:

  • Project Implementation Support, assisting the client with tender preparation, evaluation and contract award to ensure contracting quality; and Engineering Design and Contract Supervision to facilitate the timely and effective project implementation in compliance with EBRD and EIB loan and policy requirements. The estimated cost of each assignment is expected to be up to 5 per cent of the capex for each WMR/Tranche, envisaged to be financed by an international donor or the SSF.
  • Corporate Development and Stakeholder Participation Programme aimed at improving commercial, operating and environmental performance of rayons and regional operators, development and adoption of PSCs, as well as development and implementation of Stakeholder Participation Programme, including public awareness campaigns, where applicable. The estimated cost of each assignment is expected to be up to EUR 0.5 million, per Tranche, envisaged to be financed by an international donor or the SSF.

Company Contact Information

Vlada Vutcarau - Project Manager, Public Institution “Environmental Project Implementation Unit”
vladavutcarau@gmail.com
+37369222237
51 A, Alexandru cel Bun str; Chisinau mun.; Republic of Moldova

PSD last updated

08 Nov 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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