Central Tajik Water Rehabilitation Project

Location:

Tajikistan

Project number:

41642

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

08 Nov 2011

Status:

Repaying

PSD disclosed:

15 Jul 2011

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The EBRD is considering providing a loan to finance a programme of priority capital investments, to improve the municipal water services in the Central Tajik cities of Gissar, Shachrinav, Somoniyon, and Turzonzoda. The overall objectives of this Project are to: (i) rehabilitate the water supply system and, where applicable, allow selected wastewater improvements; (b) improve both billing and collection; and (c) improve financial and operational management.

Transition Impact

ETI score: null

The transition impact of this project is expected to include:

  • Access to basic public utilities;
  • Increased collection rates;
  • Introduction of tariff reform within affordability limits including support to low income groups; and
  • Improvements to the operational and financial management of the participating Water Supply companies, together with enhanced transparency and corporate governance.

Client Information

WATER AND SEWAGE COMPANY OF TAJIKISTAN

The client for this project is the State Unitary Enterprise Khojagii Manziliyu-Kommunali ("KMK"), which is the owner of the water companies in the four cities.

EBRD Finance Summary

USD 7,000,000.00

The EBRD is considering a US$ 7 million sovereign guaranteed loan to KMK in an amount of USD 7 million. The proceeds of the loan will be on-lent to the respective water companies.

Total Project Cost

USD 16,792,500.00

US$21 million including related technical cooperation. The project will be co-financed by an investment grant from an international donor.

Environmental and Social Summary

The project has been categorised B under the EBRD Environmental and Social Policy. An Environmental and Social Audit/Review of the four participating Water Companies' current EHSS management practices, operations and facilities, and an Environmental and Social Analysis of the proposed Priority Investment Programme (PIP) were carried out as part of the Feasibility Study by independent consultants.

The implementation of the proposed PIP is expected to significantly improve efficiency, reliability and quality of water supply and wastewater collection in the central part of Tajikistan, thus contributing to the provision of uninterrupted access to safe drinking water, prevention of ground and watercourses pollution and improvement of public health. PIP components will mostly involve renovation of the existing water production, supply and distribution in the Central Tajik cities of Gissar, Shachrinav, Somoniyon, and Turzonzoda.

Any adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through adequate mitigation measures. The implementation of the PIP involves construction works that will result in limited, localised and short-term adverse environmental impacts, which will be mitigated or prevented by adhering to good construction practice.

The due diligence investigations showed that the participating Water Companies have weak EHSS management capabilities and underdeveloped EHSS management systems, and that their current occupational health and safety and stakeholder engagement practices require further improvement to meet EBRD's Performance Requirements (PRs).

The companies' facilities are currently in poor operating condition resulting in unreliable and low quality water supply, high water losses and energy consumption. Wastewater collection networks are incomplete and wastewater treatment is absent in most cities. The due diligence concluded that for all four localities the reliability and quality of the drinking water supply will be significantly improved to meet local requirements, however additional further long-term investments into water networks and treatment would be required to bring it in full compliance with EU standards.

Renovation of wastewater infrastructure needs to be included in the long term investment programme due to affordability reasons. At this time the financing for the long-term investment programme from the Companies' own revenues cannot be confirmed and no potential sources of external funding has been identified. Therefore, on account of constraints arising from affordability and limited financial resources, derogation will be sought from the EBRD's Environmental and Social Policy.

The ESDD showed that the project will have a significant positive impact on public health and the environment despite the project not being able to achieve full EU compliance in the short term. The human health implications of the shortfalls from EU standards are assessed to be minor compared to the benefits of the PIP implementation resulting in safer and more reliable water supply to the local population. However, untreated wastewater discharges will remain in the short term and continue to present health risks to the local communities. Awareness raising programmes to prevent risks of water borne diseases will be developed and implemented as part of mitigation plans

Environmental and Social Action Plans (ESAPs) have been developed for the participating Water Companies to bring them into compliance with national regulations and to meet EBRD's PRs, where financially feasible. ESAPs include the necessary improvements in Companies' EHSS management and capacity, improvement of water monitoring practices and chlorine handling procedures, formalising HR practices, including improving equal opportunities with respect to gender and developing better OHS practices, fire safety and emergency response procedures, improving solid waste management practices.

Technical Cooperation and Grant Financing

The following technical co-operation ("TC") funds are envisaged as part of this project

Project Implementation Support. International consultants to assist the project implementation group within KMK and the water companies with engineering design, procurement, preparation and evaluation of tenders, contract award administration, financial control, project management and reporting. (US$ D 1.1 million to be financed by an international donor or the ETC Fund)

Corporate Development Programme. To support operational and financial improvements to ensure the sustainability of the individual water companies. The TC would also include regulatory support as required, based on achievements of TCs for the South Tajik project (Project ID 37656) and North Tajik project (Project ID 40717), which are under implementation. (US$D 1 million to be financed by an international donor or the ETC Fund).
Stakeholder Participation Programme. To implement a Stakeholder Participation Programme in the participating cities. (US$D 350,000 to be financed by EBRD's Water Fund).

Company Contact Information

Fayzulloev Abduqodir
mid_piu@mail.ru
+992372334983
Republic of Tajikistan, Dushanbe, N.Karaboyev street 56

Implementation summary

 

The Project is a part of the Bank's Integrated Approach that addressed urgently needed water infrastructure modernisation in the selected cities of Tajikistan in combination with sector wide reform support to create operationally and financially sustainable water supply operations in the country. The Project was able to improve the quality and reliability of water supply in central cities of Tajikistan, namely: Gissar, Shahrinav, Somoniyon, and Tursunzoda. As part of the Project eight new water reservoirs were constructed that resulted in increase of water storage by 8,000 cubic meters and improvement of water supply sustainability, twenty one units of pumps were installed/replaced, more than 90 kilometres of water mains were replaced, twenty two units of operational vehicles procured, chlorination and disinfection equipment installed and water metering introduced. Notably, the investment has helped to reduce energy consumption per cubic meter of produced water by 19 per cent on average.

The project also contributed to prevention of ground and watercourses pollution and improvement of public health and chlorine handling procedures, formalising HR practices, including improving equal opportunities with respect to gender and developing better Operational Health and Safety practices.

As a part of Transition impact, the Project has assisted to identify and implement the necessary corporate, financial and operational improvements (including management information systems and billing system), improve standards of transparency and governance, create a new customer relations strategy and complaints handling procedures. Importantly, the Project has assisted in creation of a first regional water company by merging smaller water utilities and achieving improved management and economy of scales.

 

PSD last updated

04 Dec 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: projectenquiries@ebrd.com

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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.

 

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