Adjara Solid Waste Project

Location:

Georgia

Project number:

36538

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

A

Approval date:

09 Feb 2010

Status:

Repaying

PSD disclosed:

28 Apr 2009

Project Description

The Project finances the construction of a new sanitary landfill to serve for the final disposal of municipal solid waste generated by the Georgian towns of Kobuleti and Batumi. The project includes preparation of the site, construction of an access road, fencing, the initial cells, a recycling facility, an administration and laboratory building, a vehicle washing and disinfecting facility, a weight-bridge, a power substation, areas for communication and infrastructure (internal roads) and a protection zone around the site.

An Environmental Impact Assessment was posted on the EBRD website on December 22, 2008 and the Scoping document was posted on Adjara website on September 19, 2008.

Project Objectives

The Project aims to improve solid waste management services in the region through construction of an EU-compliant sanitary landfill facility to serve the region of Ajara, located on the Black Sea coast.

Transition Impact

ETI score: 60

The proposed project will have the following transition impact:

Framework for markets - The project will be the first regional landfill fully compliant with EU standards and Georgian legislation. It will establish a model structure that could be replicated for the financing of other regional waste management companies in Georgia and create new legal and institutional structures to promote economies of scale, employ new technology and install best practice management techniques.

Demonstration effect of new products and processes - The project will put in place the first landfill in Georgia to be built and operated in accordance with applicable EU standards. Besides physical technology, the project will also help develop more public awareness of the benefits of anti-littering and recycling and through public promotion campaigns and incentives. The model's success is expected to generate similar projects in other regions.

Setting standards - technical co-operation services will be provided to assist Adjara to establish a project company operating in accordance with the business plan and with EU standards on solid waste, and develop a plan, structures and procedures to invite private sector participation in the operation of the project company.

Client Information

GEORGIA SOVEREIGN

The EBRD loan is provided to Georgia.

EBRD Finance Summary

EUR 3,000,000.00

The Project consists of a loan of EUR 3 million to Georgia, on-lent to the Autonomous Republic of Ajara, for the benefit of the Ajara Waste Management Company. 

Total Project Cost

EUR 10,000,000.00

The EBRD loan is cofinanced by the Government of Sweden with a SEK 42 million (EUR 4 million) grant for capital expenditure.

Additionality

The Bank's involvement is additional because:

- EBRD Terms: There is limited market for long-term municipal borrowing for local authorities in Georgia. Also, municipalities are subject to various debt service constraints, and Government consent for borrowing is required. By combining its loan with a capital grant, the Bank created a financing structure within affordability limits.

- EBRD Attributes: At the time of approval, this was the second solid waste project in Georgia with international financing. EBRD's extensive solid waste sector knowledge and ability to structure implementation arrangements were significant during the Project development.

- Conditionalities: EBRD's transition impact, environmental and social related conditionalities go far beyond what commercial funding sources would require, including procurement procedures, sector reform and link to the green economy.

Environmental and Social Summary

Screened A/1 (EBRD's Environmental and Social Policy 2003)

The project will bring substantial environmental, health and safety benefits to the towns of Batumi and Kobuleti, the surrounding communities and the Autonomous Republic of Adjara by providing an adequate and affordable municipal waste management system which included construction of a new sanitary landfill according to national and EU standards.

However, the construction of a new sanitary landfill may be associated with a number of environmental issues and risks. An Environmental Impact Assessment was carried to assess potential environmental, health and safety issues and risks associated with the construction of a new landfill and it determined measures for their mitigation, specifically related to gas, odour and dust emission, soil and groundwater protection, leachate collection and management.

The EIA and Public Consultation and Disclosure Plan prepared for this project according to the national and the EBRD's Public Information and Environmental and Social Policies' requirements are currently available for public information and comments.

The EIA has identified that a number of families have houses, summer houses and/or businesses in the 500 meter sanitary zone around the new landfill site which, according to the Georgian legal requirements, will need to be considered for resettlement. According to Georgian legal and EBRD's Environmental and Social Policy requirements, a Land Acquisition and Resettlement Action Plan will need to be prepared. It will be reviewed by the Bank and agreed with the Client on its implementation.

Information on EIA carried out for this project is available on EBRD's web site.

There is an Environmental and Social Impact Assessment available for this project.

 

Update (2021)

A new sanitary landfill has now been constructed, and a gas extraction system installed, but at a new location. Upon the request of the Government received in November 2011, the originally selected site had to be changed due to a plan to develop tourism infrastructure in Chakvi. Consequently a new study was launched which identified an alternative site in Tsetskhlauri, 45 km North of Batumi. The new ESIA was prepared and published on EBRD website in November 2015.

The new landfill site in Tsetskhlauri required the resettlement of three residential properties located in the sanitary protection zone. There were also potential economic impacts associated with reduced access to grazing and informal agricultural production in the area surrounding the site. Hence a Resettlement Framework and Livelihood Restoration Framework ("R-LRF") was prepared in 2015, in line with PR5 of EBRD's Environmental and Social Policy (2008). This was followed by development of Resettlement Action Plan (RAP) and Livelihood Restoration Plan (LRP) and their  implementation in 2016-2017.

 

EBRD will continue to monitor the project through Annual Environmental and Social Reports and site visits, as needed.

Technical Cooperation and Grant Financing

To support project preparation and facilitate implementation, the Project was complemented by a comprehensive TC package comprising of both pre- and post-signing TC assignments in the amount of up to EUR 2.3 million, funded by the EBRD Shareholder Special Fund, Sida, the Early Transition Countries Fund, and the client.

Implementation summary

The Project financed construction of an EU compliant sanitary landfill facility to serve the Autonomous Republic of Adjara. The Project also provided TC assistance to support the implementation, environmental and social performance and capacity building of the Company.

The Project and its follow up investments (aimed to supply movable equipment for landfill operation and to close and remedy existing dumpsites according to the EU directives) are expected to result in significant social and health benefits, and improve the environmental and safety standards by supporting enhanced solid waste management in Adjara.

PSD last updated

11 Apr 2022

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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