KWRF: Myrzaki-Kurshab water extension

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The provision of a sovereign loan of up to € 1.5 million under the Kyrgyz Water Resilience Framework to cover the increased costs of implementing the original investment programme under operation - Myrzaki-Kurshab Regional Water project (OPID 48036). The loan proceeds will be on-lent to the Joint Municipal Enterprise "Water and Sewage Agency of the Uzgen Region". The loan will be co-financed by a € 0.75 million investment grant from the EBRD Shareholder Special Fund.

Project ID 55471

Status Signed

Location

Kyrgyz Republic

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Mr. Kalbaev Zhumanazar Nurkamilovich
Zhumanazar.Kalbaev64@mail.ru
+996 774 760 820
Kyrgyz Republic, Osh region, Uzgen rayon, Bakmal village, I.Zhusupov Street, #26

Project ID 55471

Status Signed

Location

Kyrgyz Republic

Business Sector

Municipal Infrastructure

Notice Type

State

Approval Date

16 Apr 2024

Disclosure date

03 Jun 2024

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."

KWRF: Myrzaki-Kurshab water extension (Russian) (PDF, 0.19MB)

Project description

Project objectives

The project will finance critical drinking water supply improvements across five districts in the Uzgen region, including the rehabilitation and extension of water network, the supply and installation of water meters and testing equipment, the refurbishment and construction of reservoir, intake facilities and water disinfection unit and the replacement of pumping equipment.

Client information

KYRGYZ REPUBLIC SOVEREIGN

The borrower will be the Kyrgyz Republic, represented by the Ministry of Finance. The loan will be on-lent to the Joint Municipal Enterprise "Water and Sewage Agency of the Uzgen Region". It was established in September 2016 and is equally owned by the municipalities of Myrza-Ake, Kurshab and Don-Bulak. The company provides drinking water supply services in the municipalities. It had 13,000 registered customers as of 2023 and its customer base is expected to grow to 43,000 by 2033.

EBRD Finance Summary

EUR 1,500,000.00

A sovereign loan of up to € 1.5 million to the Kyrgyz Republic on-lent to the Company under a subsidiary loan agreement. The loan will have a 15-year maturity, including a three-year grace period.

Total project cost

EUR 2,250,000.00

Additionality

Financing structure: the Bank provides long-term financing required for the project, which is currently not available from local commercial banks. The Bank's loan will play a key role in ensuring that the company operates as a commercial entity with tariffs reaching cost recovery level.

Environmental & Social Summary

The Project is categorised B under the 2014 Environmental and Social Policy. The Environmental and Social Due Diligence (ESDD) has been carried out by independent consultants. The ESDD confirmed that the implementation of the Project will significantly increase access to safe drinking water by improving the efficiency and reliability of water supply services. Any adverse impacts will be limited, localised and temporary, and it will be possible to prevent or mitigate them by adhering to good construction practices.

The ESDD showed that the Company has insufficient environmental, health, safety and social (EHSS) management capabilities and underdeveloped EHSS management systems, and that its current occupational health and safety and stakeholder engagement practices require further improvement to meet the EBRD's Performance Requirements (PRs). The Company's facilities are currently in a poor operational condition, which translates into unreliable and low-quality water supply, high water losses and energy consumption.

Despite all the improvements to be delivered by the Project, further investments would be needed to achieve compliance with the EU standards in terms of drinking water quality.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the Environmental and Social Action Plan. The Bank will conduct monitoring visits, as required, and commission a completion audit.

Technical Cooperation and Grant Financing

No additional technical cooperation.

The original investment (OPID 48036) includes the following TC assignments for the total amount of € 1,200,650:

Pre-signing:

TC 1: Feasibility Study i € 200,650 funded by the Infrastructure Project Preparation Facility ("IPPF").

Post-signing:

TC 2: Project Implementation Support i up to € 600,000, financed by the EU's Asia Pacific Investment Facility for Central Asia ("APIF"), former IFCA. The contracted amount is € 471,650.
TC 3: Corporate Development Programme i up to € 400,000, financed by the EU APIF. The contracted amount is 399,000.
TC 4: Project Implementation Support Extension i up to € 128,000, to be financed from the TC 2 grant savings, funded by the EU's APIF.

Company Contact Information

Mr. Kalbaev Zhumanazar Nurkamilovich
Zhumanazar.Kalbaev64@mail.ru
+996 774 760 820
Kyrgyz Republic, Osh region, Uzgen rayon, Bakmal village, I.Zhusupov Street, #26

Implementation summary

PSD last updated

03 Jun 2024

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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KWRF: Myrzaki-Kurshab water extension

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)