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.
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.
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.
Borrower: Georgia, represented by the Ministry of Finance;
Beneficiaries: Adjara Waste Management Company Ltd and Autonomous Republic of Adjara.
EBRD Finance Summary
Total Project Cost
The Project will also benefit from technical cooperation assignments to support project preparation and implementation.
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
Adjara Waste Management Company Ltd 124 Vakhtang Gorgasali Street Batumi 6010, Georgia
PSD last updated
17 Jan 2023
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