Project Description
The proposed project entails rehabilitation of the water and wastewater supply network.
In addition to these capital investments, the project will install meters to customers and include a financial operational performance improvement programme for the company as well as support to the city.
The EBRD is considering making a sovereign loan of EUR 1.5 million to Georgia to support the rehabilitiation of the water and wastewater supply network in the city/area.
Transition Impact
Transition impact will be:
-
Performance improvement and commercialisation of the Company as a result support provided through the corporate development technical cooperation project.
-
A new tariff and collection policy will be agreed with Borjomi and Georgia with agreed milestones covenanted in the loan agreement. Raising tariffs and improving collections will enable the Company to generate sufficient cash flow to ensure cost recovery.
-
Skills and knowledge transfer will take place during the Technical Co-operation Programmes through the PIU support, FOPIP and corporate development programme and city implementation support programme.
- To ensure long term sustainability, regionalisation of Borjomi’s operations to include Bakuriani.
The Client
The project consists of a sovereign loan to Georgia on-lent to the Borjomi Water Company to finance the rehabilitation of the water and wastewater treatment systems. The Municipal Development Fund will work closely with the City to implement the project.
EBRD Finance
Sovereign loan of up to EUR 1.5 million to Georgia to be on-lent to the Borjomi Water Company.
Grant co financing is expected to come from the following sources: Millennium Challenge Corporation/Millennium Challenge Georgia (USA) and other international donors.
Project Cost
EUR 9.3 million (including VAT).
Environmental Impact
The project has been screened as B/1, requiring an environmental audit of the main assets of the Borjomi Tskalkanali Water Company and an environmental analysis of the proposed investments. Environmental due diligence should also assess the sustainability of water sources in the Borjomi Region. Following the completion of the audit and the analysis, any resulting recommendations will be formulated into a time-bound, costed environmental action plan ("EAP") which, once agreed with the Company, will be included in the legal agreements.
Technical Cooperation
Pre-signing:
-
TC 1: Feasibility Study (EUR 250,000 funded by the EU Water Investment Support Facility) for a financial, technical and environmental due diligence on the proposed project (under completion)
-
TC 2: Audit (EUR 24,000 funded by Bank’s own resources) for an audit of the accounts of the Borjomi Water Company
- TC 3: Engineering Design & Field Supervision (EUR 165,000 funded by oil company British Petroleum (“BP”) for design and supervision
Post Loan Signing:
-
TC 4: Project Implementation and Procurement Support services (combined for Borjomi, Rustavi and Kobuleti water projects) (EUR 400,000): International consultants to assist the project implementation unit during the estimated three year implementation period. The consultants will provide comprehensive engineering design, tender evaluation, contract award and administration, financial control, project management, and reporting services. (To be funded by SIDA).
- TC 5: Corporate Development and City Support Programme (combined for Borjomi and Rustavi) (EUR 500,000): to (i) assist the Company to identify and implement the necessary corporate, financial and operational improvements (including MIS) to meet the related covenants included in the EBRD financing documents as well as ongoing corporate development, (ii) assist the City to develop a service contract to be signed between the City and the Company. (To be funded by the ETC Fund).
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
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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.
