Bishkek Solid Waste

Location:

Kyrgyz Republic

Project number:

41712

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

A

Target board date:

16 Apr 2013

Status:

Repaying

PSD disclosed:

07 Feb 2013

Translated version of this PSD Russian

Project Description

The EBRD is considering supporting improvements to Bishkek’s solid waste facilities. The EBRD would extend a sovereign loan of up to EUR 11 million to the Kyrgyz Republic, to be on-lent to the City of Bishkek for the benefit of the municipal solid waste collection company Tazalyk and the new landfill management company to be established (jointly, the Companies). The overall project will improve the City’s solid waste management, including collection across the city, investment in an urgently needed sanitary landfill, and the closure of the existing dumpsite, which is at the end of its economic life. The investment will result in an improved level of public service, the introduction of waste recycling and environmental improvements.

The project will measure success by monitoring the following indicators before and after project implementation: Population with improved solid waste management services. Measured by the number of households with improved solid waste management services multiplied by average household size; and Reduction in tonnes of CO2 equivalent due to diversion of solid waste from landfill disposal. Measured by the tonnes of waste diverted away from landfill multiplied by average greenhouse gas emission potential based on waste content.

Transition Impact

The transition impact of this project is expected to include:

  • Setting a new operating model in the market. The Project will put in place the first landfill in the Kyrgyz Republic to be built and operated in accordance with applicable EU environmental standards. The Project will also help develop a better public awareness of the benefits of anti-littering and recycling through public promotion campaigns and incentives. If successful, this would be the first commercially driven approach in the Kyrgyz Republic, with a significant demonstration effect to other cities and solid waste companies.
  • Separation of tasks between the existing solid waste management company and the new landfill management company to be established. Collections will be managed by the existing municipal collection company Tazalyk. A new company will be established to operate the landfill.
  • Institutional strengthening through technical co-operation services, to establish a commercially driven solid waste company. Subsequent capacity building will be provided to implement efficient operations in accordance with the business plan, and in accordance with EU standards on solid waste, as well as develop a plan, structures and procedures to facilitate private sector participation in the solid waste sector, where feasible.
  • Introduction of the principle of cost recovery in landfill management through fees.

The Client

Government of the Kyrgyz Republic, with on-lending to the City of Bishkek, which will build the landfill and establish a new company to own and operate the facility.

EBRD Finance

The EBRD will provide a sovereign loan of up to EUR 11 million to the Kyrgyz Republic, to be on-lent to the City of Bishkek for the benefit of the Companies. The proceeds of the Bank’s loan will finance critical solid waste investments in Bishkek. The project will be co-financed by a EUR 3.0 million grant from the Bank’s Shareholders Special Fund and a EUR 8.0 million grant from an international donor.

Project Cost

The proposed project consists of a financing package of EUR 22 million, including a loan of EUR 11 million and grants amounting to EUR 11 million.

Environmental Impact

The project was categorised A under the EBRD Environmental and Social Policy (2008) as the construction of a new waste management facility can potentially have significant and adverse future environmental and social impacts which cannot be readily identified.

An Environmental and Social Impact Assessment (ESIA) was carried out for the project and disclosed in February 2013 together with the Non-Technical Summary (NTS), Environmental and Social Action Plan (ESAP) and the  Stakeholder Engagement Plan (SEP). Since the signing of the Loan Agreement in 2013 work has continued to develop the Project but circumstances in the local area have changed and waste deposition at the existing dump has extended into the area which was previously considered for the new landfill. This required the location of the new facility to be reconsidered and a new engineering design developed for the new location. The new location is approximately 350 m to the north of the existing dumpsite, on the northern edge of an area previously used for clay extraction. After this change an independent consultant was assigned to review the new location and prepare an addendum for the ESIA which was disclosed in 2012. The Non-Technical Summary (NTS), Environmental and Social Action Plan (ESAP) and the Stakeholder Engagement Plan (SEP) have also been revised to reflect the changes to the project.

The ESIA concluded that a general improvement of conditions on the dumpsite, including its reception area, will have a positive impact on most residents around the dumpsite with some short term negative impacts to residents adjacent to the access road during the construction and re-cultivation process. The project will result in significant improvements with regard to the quality of solid waste management services in Bishkek, improvement of public health by reducing the vectors (rats, dogs and insects) that can spread disease, elimination of current underground fires, and reduction in noise and odours.

The project is designed in accordance with national and EU waste management legislation including EU framework legislation on waste, and legislation on waste management operations and specific waste streams. The introduction of a waste sorting facility into the solid waste management system will allow better recovery of valuable fractions from the municipal solid waste stream which was previously sent to the dumpsite. The biodegradable waste fraction will now be sent for Mechanical and Biological Treatment (MBT). As a result, the volume of waste sent for final disposal will decrease. The landfill site will consist of three cells. Each landfill cell will be constructed with an artificial geological barrier comprising a clay layer on the bottom and sides. A clay layer will be laid after a base layer, and then layers of the high density polyethylene, protective geotextile and a drainage layer will be appropriately placed on top. The site will be provided with a perimeter fence and gate and will be accessed via a new 3.1 km access road.  The landfill will be provided with surface water collection and storage system; leachate collection, transport, storage, treatment facilities; and landfill gas generation and collection system.

There is an informal settlement adjacent to the existing dumpsite. With the original location that was subjected to the ESIA in 2013,  it was expected that physical resettlement would be required for some of the households. However, the proposed new location is further away from the settlement and hence no physical resettlement is will necessary.  Additionally, the eventual closing of the existing dumpsite will affect people involved in the collection of secondary materials on the site. ESIA had established that a significant number of waste pickers were engaged in informal waste recovery from the disposal site would lose their source of livelihoods. Since 2013, with assistance from EBRD funded consultants, the City developed a Livelihood Restoration Plan (LRP) in accordance with the EBRD’s PR5. Approximately 230 waste pickers were registered through the census activity carried out as part of the LRP development. Currently, another EBRD funded TC is on-going to support the municipality in implementing and reaching the objectives of the LRP.

An Environmental and Social Action Plan (ESAP) has been developed for mitigation of identified E&S issues and impacts during preparation, construction and operation of the project, and to bring the Company's operations into compliance with the EBRD's PRs. The key issues covered under the ESAP include:

  • Establishment and/or improvements in the Environmental, Social, Health and Safety Management Systems of companies involved;
  • Development and implementation of construction-related plans, such as Construction Management Plan, Traffic Management Plan, Emergency Response Plan etc;
  • Actions to mitigate potential public health and safety impacts during construction and operation with regard to air emissions, noise, traffic movements, sanitary conditions/disease prevention, site security etc.;
  • Requirements for sub-contractor compliance and management;
  • Updated recommendations with regard to assessing and managing social impacts, particularly related to new land acquisition and livelihood restoration. 

The mitigation measures in the ESAP and Environmental and Social Management and Monitoring Plan will need to be implemented during construction, operation and aftercare phases to maintain compliance with lender requirements.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP and resettlement action plan. The Bank will conduct monitoring visits, as required, and commission a completion audit.

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

Technical Cooperation

The following technical co-operation (“TC”) assignments are envisaged as part of this project:

Pre-signing

  • Feasibility study consisting of full financial, technical and environmental due diligence on the proposed project and the solid waste sector in Bishkek (EUR 620,000, financed by the EBRD ETC fund).
  • Restatement and Audit Services for Tazalyk (USD 19,650 (~EUR 14,550)), financed by the Bank’s own resources).
  • Resettlement and consultation for the City of Bishkek to prepare a Resettlement Framework and Resettlement Action Plan that would comply with EBRD’s Environmental and Social Policy requirements and support the City to implement the Stakeholder Engagement Plan particularly with respect to any physical displacement (EUR 64,030, financed by the EBRD Shareholder Special Fund).
  • A Livelihood Restoration Framework and Livelihood Restoration Plan that would comply with EBRD’s Environmental and Social Policy requirements and to support the City to implement the Livelihood Restoration Plan to address economic displacement as a result of the project (USD 55,130, (~EUR 40,800) financed by the Bank’s own resources).

Post-signing

  • Support to the Project Implementation Unit, Engineering Design Services, Procurement and Contract Supervision (EUR 800,000, to be financed by the European Union under their Investment Facility for Central Asia (“IFCA”)).
  • Corporate Development, City Support and Stakeholder Participation Programmes (EUR 600,000, to be financed by the Government of the Czech Republic).
 

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

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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.