Aktau Water Desalination Plant

Location:

Kazakhstan

Project number:

42023

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Status:

Cancelled

PSD disclosed:

21 Dec 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a $12 million senior loan to Caspiy Desalination Plant LLP to rehabilitate and modernise the water desalination plant supplying fresh water to the city of Aktau, in western Kazakhstan, the country's only seaport on the Caspian Sea.The project aims to improve the water supply services in Aktau by increasing the efficiency and production capacity of the plant. It also aims to improve the quality of the drinking water, introduce energy efficiency technologies in water desalination, and extend the plant’s services to more residents of the city and its surrounding areas. The loan will specifically replace the plant’s obsolete equipment with modern technology to secure reliable high quality water supply. In addition, the EBRD investment will promote the sector reform and enhance sustainable development of the city of Aktau.

Transition Impact

The project will help the plant start operating as a commercial entity through balanced tariff reform, introduction of a public service contract with the city and proper business planning.

It will also contribute to energy efficiency through implementation of modern technologies in the reverse osmosis process. For this purpose variable frequency drives will be installed on the high pressure pumps and Pelton turbines will be introduced.

As a result of the project customers living in the water deficit areas of the city of Aktau and its surrounding areas will benefit from improved water supply service. Additionally, the transaction will increase the operations transparency and improve business and environmental and social protection standards at the plant through introduction of IFRS and implementation of the ESAP. The technical assistance component of the project will also contribute to the transfer of skills needed for company’s modernisation.

The Client

Caspiy Desalination Plant LLP, a subsidiary of Caspiy Socially Responsible Corporation National Company is owned by the municipal government of Mangystau Oblast.

EBRD Finance

Senior corporate loan of €12 million.

Project Cost

USD 24 million.

Environmental Impact

The project is assigned Category B in accordance with the EBRD’s Environmental and Social Policy (2008). The environmental and social due diligence (ESDD) comprising of a review of the company's existing corporate management systems on environmental and social issues; an independent environmental and social audit/review of the current operations and facilities to examine environmental and issues associated with the existing water supply and the carrying capacity of the wastewater collection system and wastewater treatment facilities whose loadings and efficiency will be affected by the project; and an analysis of potential environmental and social issues associated with the proposed project is currently on-going. Upon completion of the due diligence an Environmental and Social Action Plan (ESAP) will be prepared and will become a part of the Loan Agreement.

This PSD will be updated once the results of the ESDD will become available.

Technical Cooperation

The following TCs support the investment:

Project preparation

  • Preparation of a feasibility study (special investment programme) (€230,000 – financed by the EBRD Water Fund).

Project implementation

  • Project Management Consultants for the project management, design, procurement, engineering and supervision of works (up to €500,000 – to be financed by an international donor);
  • Preparation of the PSC and a corporate development plan (up to €180,000 – to be financed by an international donor)
  • Update on the water services development plans for the City of Aktau (up to €150,000 – to be financed by an international donor)

Company Contact

Mr. Murashko Vladimir
Executive director
Caspiy Desalination Plant

Address:
Republic of Kazakhstan
130000, Aktau city, Mangistau region,
embankment of 4th micro-district, office building №19 ("Caspiy")
Telephone: +7 7292 54 42 74

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.