GrCF2 W2 - Tbilisi Solid Waste Extension

Location:

Georgia

Project number:

52825

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Approval date:

22 Jun 2021

Status:

Signed

PSD disclosed:

15 Jun 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

The sovereign loan to Georgia of up to EUR 3.03 million represents an increase in financing under the existing project GrCF - Tbilisi Solid Waste Project (Original Project). The incremental loan proceeds are to be used for a wider upgrade of the leachate system in the Tbilisi City's landfill, a component included in the Original Project.

The Project is part of Green Cities Framework 2 (GrCF2) and a follow-on investment from Tbilisi's Green City Action Plan (GCAP). The project addresses the GCAP-identified need for improvements in the City's solid waste system. It reduces environmental pollution from the landfill and employs best available technology in line with the EU standards.

Project Objectives

The project aims to contribute to an improved level of solid waste services and overall improved environment in Tbilisi.

Transition Impact

ETI score: 80

The Project will primarily help to promote the Green transition quality by improving the waste collection system, a key environmental priority identified in the GCAP. The Project will result in improved solid waste management and reduce the negative impacts of waste collection on the environment through purchasing low-emission vehicles and increasing the efficiency of waste collection route planning.

The Project will also support the Well-governed objective through the implementation of the Stakeholder Engagement and Stakeholder Participation Programme (SPP) and Municipal Solid Waste Strategy (MSWS), included in the Original Project and identified in Tbilisi's GCAP.

Client Information

GEORGIA SOVEREIGN

  • Borrower: Georgia, represented by the Ministry of Finance.
  • Beneficiary: Tbilisi City
  • Implementing Agency: Tbilservice Group Ltd. (fully owned by Tbilisi City).

EBRD Finance Summary

EUR 3,030,000.00

Total Project Cost

EUR 3,030,000.00

Additionality

The Bank is additional because of its
- Financing Structure: There is very limited market for long-term municipal borrowing for municipalities/utilities in Georgia. Local banks cannot offer loans matching the economic life of the infrastructure assets. Furthermore, municipalities are restricted to borrow above a certain limit and without the consent of Ministry of Finance of Georgia.
- Knowledge, innovation, and capacity building: EBRD extensive solid waste sector knowledge and long-standing relationship (including policy dialogue) with the City and ability to pursue the green agenda, ostensibly through the Green Cities Framework 2. The Bank supports the City with the development and implementation of an integrated municipal waste management strategy.
- Standard-setting: EBRD credit, transition impact, and environmental related conditionalities go far beyond what commercial funding sources would require, including procurement procedures, accounting transparency, sector reform and clear link to the green economy.

Environmental and Social Summary

Categorised B (ESP 2019). Extension of the Original Project to widen the scope of the envisaged leachate collection and treatment system coverage from two to four cells at Tbilisi landfill is expected to have mostly beneficial effects. The identified environmental and social issues will be managed through the implementation of an Environmental and Social Action Plan (ESAP), which was agreed for the Original Project. As a condition precedent to the first disbursement for the Project, the Company will have to complete the Technical Study and approve a national Environmental Impact Assessment for the revised leachate system reconstruction.

The Environmental and Social Due Diligence (ESDD) of the Original Project was undertaken in 2018 by an independent consultant as part of the feasibility study. It included a review of the applicable environmental, safety and social requirements, current waste management practices, as well as an analysis of environmental and social impacts and benefits associated with the Original Project.

The assessment included a review of the impacts associated with leachate collection and treatment. EBRD has supported the implementation of the Original Project though a donor financed Project Implementation Unit (PIU).

The ESDD of the Project, a leachate system component, comprised the review of the Company's Annual Environmental and Social Report (AESR), ESAP implementation status, and PIU consultant reports. The ESAP implementation progress has been found satisfactory. The Bank will monitor the Project implementation through the review of AESRs.

Technical Cooperation and Grant Financing

Post-signing:

Technical Study. The technical and environmental assessment of the leachate management system. The estimated cost of the assignment is up to EUR 75,000, expected to be financed by an international donor or the EBRD Shareholder Special Fund (SSF). 

Company Contact Information

David Bodokia
dbodokia@gmail.com
995 577 262020
tbsg.ge
Tbilservice Group Ltd. 67 Kakheti Highway, 0182, Tbilisi, Georgia

PSD last updated

15 Jun 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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