Project Description
Adjara Solid Waste Management Phase II Project is part of Green Cities Framework 2 ("GrCF2") and the first follow-on investment from Batumi's Green City Action Plan ("GCAP"). The Project will address the priority environmental challenges of solid waste and soil quality identified in the Batumi GCAP. It will employ best available technologies ("BAT") and will result in environmental benefits as well as mitigation benefits by reducing GHG emissions.
Project Objectives
The Project aims to improve the environmental and safety standards by making the new sanitary landfill operational; increasing the capacity to recover recyclable materials; reducing waste quantities going to the new landfill, and thus extending its lifetime, reducing uncontrolled leachate, and landfill gas generation. The acquisition of the solid waste management equipment will enable Adjara Waste Management Company to start new landfill operations, and consequently the disposal of waste at the current non-EU compliant dumpsites will be stopped. Moreover, the Project will finance the construction of a waste treatment plant.
Transition Impact
ETI score: 70
The Project will primarily help to promote the Green transition quality by addressing the environmental challenges of solid waste and soil quality, identified in Batumi's GCAP. The Project will reduce the volume of collected solid waste sent to the landfill, and bring landfill operations in line with the EU environmental standards.
The Project will also support the Inclusive objective through promoting equal opportunities in solid waste sector by providing access to skills and employment to young women and men in Adjara in waste management sector.
Client Information
GEORGIA SOVEREIGN
Borrower: Georgia, represented by the Ministry of Finance;
Beneficiaries: Adjara Waste Management Company Ltd and Autonomous Republic of Adjara.
EBRD Finance Summary
EUR 19,000,000.00
Total Project Cost
EUR 25,000,000.00
The Project will also benefit from technical cooperation assignments to support project preparation and implementation.
Additionality
The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, which are necessary to structure the Project.
The 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 Company.
The EBRD supports the Company to achieve higher standards by relying on the best international procurement standards.
Environmental and Social Summary
Categorised B, 2019 Environmental and Social Policy. The independent environmental and social due diligence ("ESDD") on the Project was conducted within the framework of the Feasibility Study. This is an existing client of the Bank and the ESDD identified that while the EU-compliant landfill had been built as part of the previous transaction, its operation has not commenced due to the lack of required mobile waste loading and unloading equipment and waste sorting and treatment equipment. The landfill operation can only achieve full compliance with the EU requirements once the waste recycling programme is deployed, the waste treatment plant is built and become operational, which is the expected outcome under the proposed Project. The Company will need to ensure that the selected waste treatment technology meets the requirement of the EU BAT conclusions for waste treatment. The ESDD identified that the existing environmental, health and safety ("EHS") staff of the Company requires enhancement of their capacity and skills in order to oversee the implementation of the Project in line with the EBRD Environmental and Social ("E&S") requirements. The EHS management system is yet to be developed; such system should be benchmarked against the EU standards in addition to national standards. The environmental impacts will include increased generation of dust, air and noise emissions and a generation of construction waste, and can be managed through the implementation of the Construction Environmental Management Plan. The construction of the waste treatment plant will require additional land-take and also trigger a revision of the boundaries of the Sanitary Protection Zone under the Tranche 2 of the Project. The Company will need to conduct required measurements to identify the impacts of the new waste treatment facilities as part of the national Environmental Impact Assessment for the plant. No physical or economic displacement is expected for the Tranche 1 of the Project that will be limited to the purchase of the landfill management equipment.
Technical Cooperation and Grant Financing
The following technical co-operation assignments are envisaged as part of this Project:
- Project Preparation. The cost of the assignment is EUR 74,750, financed by the EBRD Shareholder Special Fund ("SSF").
- Pre-Signing Procurement Support. The cost of the assignment is EUR 73,850, financed by the SSF.
- Project Implementation Support. The estimated cost of the assignment is up to EUR 2,470,000, expected to be financed partly from the loan proceeds and partly by an international donor and/or the SSF.
- Equal Opportunities in Solid Waste Sector. The estimated cost of the assignment is up to EUR 75,000, expected to be financed by an international donor and/or the SSF.
- ESAP Implementation Support.The estimated cost of the assignment is up to EUR 70,000 expected to be financed by an international donor and/or the SSF.
Company Contact Information
Nodar Kontselidze
ajarawmcompany@gmail.com
Adjara Waste Management Company Ltd
124 Vakhtang Gorgasali Street
Batumi 6010, Georgia
PSD last updated
17 Jan 2023
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.
