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.
Client Information
KYRGYZ REPUBLIC SOVEREIGN
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 Summary
EUR 11,000,000.00
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.
Total Project Cost
EUR 22,000,000.00
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 and Social Summary
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 and Grant Financing
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).
Implementation summary
Update (as of December 2022)
The Bishkek SW Project has become effective on 12 October 2015, however implementation of the Project experienced significant delays mainly due to the challenges in maintaining adequate implementation capacity of the Client and the City due to frequent changes in management, delays caused by COVID-19 pandemic, re-organization of municipal enterprises with a respective split of functionalities, changes in contractors, changes to project area and scope, amongst other reasons. The project implementation resumed in 2022 and expected to complete by December 2024, with the works under construction of the new landfill is expected to complete by 1H 2023. The works under closure and remediation of the existing dumpsite area was further impeded due to changes in contractors and the slow process of re-registration and re-issuance of new land ownership documentation for the additional dumpsite area discovered outside the established dumpsite boundaries. This additional territory requires supplementary technical, environmental and social assessments and mobilization of financial resources, which has further delayed the project completion. Due to the delay in closure of the dumpsite and opening of the new landfill, expected positive impacts from reduction in pollution (emissions, leachate management, cessation of fires, etc.) have also been delayed.
The LRP that was developed in 2013 and implemented between 2014 and 2021 is drawing to its close, with most of short- and medium-term entitlements having been delivered to the affected people (APs). Overall, 230 APs (waste pickers) benefited from the Livelihood Restoration Plan (LRP) implementation. The Company will continue to provide livelihoods support to the affected people and deliver longer term livelihoods support measures until the LRP and ESP PR5 objectives have been achieved.
In April 2020, there was a change in scope and the project footprint was expanded to build an access road outside of the originally agreed project area. As a result, a number of unregistered structures, including several residential properties had been partially or totally demolished. The Company, assisted by a team of resettlement consultants prepared a Resettlement Action Plan (RAP). Once final draft RAP is endorsed, it will be disclosed to all 26 affected households and consultation meetings will be held i which is expected in Q1 2023.
There were active stakeholder engagement activities implemented from 2015 to 2018 with the focus on waste pickers and affected households. The engagement included regular surveys within waste pickers, individual meetings, focus group discussions, and general meetings. During 2020 i 2021 the Company had limited engagement meetings with affected households and other stakeholders mostly due to COVID related restrictions. In 2021, most meetings were focused on resettlement and land acquisition related issues and involved meetings with households, whose property were affected due to the new access road. All upcoming stakeholder engagement activities planned for the next 6 to 12 months will be disclosed in the updated SEP which is expected to be posted in Q1 2023.
EBRD is providing Project Implementation Consultant support to assist the Project Implementation Unit (the "PIU") for the Project and ESAP implementation as well as Corporate Development, City Support and Shareholder Participation Consultant ("CDP Consultant") support to assist with the respective corporate development activities.
PSD last updated
17 Jan 2023
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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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.
