The proposed project is the first phase of a two-stage integrated solid waste management programme for Bacau County. The first phase will cover the municipality of Bacau and 18 surrounding communities, with the intention of expansion to the rest of the County in the second phase.
The Bank’s loan will fund:
equipment to be used in collection operations, including recycling and composting bins;
a vehicle to be used in the landfill operations; and
- consultants to assist the City in selection of private sector operators to manage the collection and landfill operations under concession or other forms of agreement.
The Bank’s loan will provide co-financing for a European Union grant for the project. The grant will be used to finance:
1) closure of the existing landfill and village dumpsites and investment in a new landfill that complies with environmental requirements and includes gas-flaring and leachate treatment facilities;
2) installation of waste collection and selection facilities aimed at increasing the level of recycling in Bacau and surrounding communities and ensuring that the remaining solid waste is disposed of in the environmentally compliant landfill.
Competition and private sector development
Through the proposed project, waste services will be reorganised at a scale which will enable competition and private sector involvement; long-term concessions will be tendered for landfill management and waste collection.
The proposed project will enable dramatic improvements in technology, including modern leachate collection and treatment for both the existing and new landfills; the use of composting facilities and implementation of recycling facilities for waste separation and reuse.
Through a two-phased approach which is expected ultimately to reach the whole county, the project will enable financing of waste facilities in small municipalities and rural areas.
Framework for markets
The proposed project will build capacity at the city level for tendering and awarding private sector waste concessions and for monitoring and regulating the concessionaires and the sector, in general. The project will also require the Municipality to institute full cost recovery tariffs sufficient to pay for the improved facilities and service.
The Municipality of Bacau, a city of approximately 185,000 in Eastern Romania is also the capital of Bacau County. The Municipality will manage the project through a Project Implementation Unit and will also represent 18 neighboring communities in the project implementation. Upon completion of the project, the Municipality will tender for operators of the landfill and collection services.
EBRD loan of EUR 5 million to the Municipality of Bacau, with co-financing of EUR 15 million from an EU ISPA grant.
EUR 20 million.
The component of the EU ISPA’s project which refers to purchasing of equipment for improving solid waste management and which will be financed by EBRD is associated with negligible environmental issues. However, the Bank's environmental specialists have reviewed the Environmental Impact Assessment for Integrated Waste Management in Bacau Municipality and Surrounding Areas prepared for EU ISPA by independent consultants. The investigations showed that the Bank's project will contribute to improving the environmental situation in Bacau and its surrounding areas by bringing the waste management practices into line with the applicable EU environmental standards. The equipment to be purchased with the Bank’s proceeds will need to meet applicable EU environmental standards and appropriate technical specifications will be incorporated in the tender documents.
Technical cooperation will be provided from loan funds and the ISPA grant. Consultants will be utilised to assist in project supervision and for advice and tendering of private sector operators for the landfill and collection services.
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