The proposed project involves a loan to the municipal water and wastewater utility of the Communal Water and Wastewater Management Utility of the South Coast of the Crimea (the “Company”), owned by the Autonomous Republic of Crimea in Ukraine. The proceeds of the loan would be used to finance priority capital investments to improve the municipal water and wastewater infrastructure and services in the City of Yalta and a number of smaller municipalities along the south coast called “Great Yalta”, the most famous resort area in the Crimea. The investments are expected to contribute significantly to decreasing the level of polluting discharges into the Black Sea.
The proposed project will have an impact on the transition process through:
(i) corporatisation and commercialisation of the Company
(ii) billing according to actual consumption;
(iii) transfer of skills during the implementation phase including the procurement, design, installation and contracts supervision in accordance to the best available international engineering practice.
The borrower will be the Communal Water and Wastewater Management Utility of the South Coast of the Crimea.
A senior loan of up to EUR 6 million to the Company.
Equivalent to EUR 8 million.
Environmental classification and rationale
The EBRD has classified the project B/1, requiring an Environmental Audit/Review of the key operating assets to be undertaken and an Environmental Analysis to assess the potential environmental impacts of the priority investments. The prioritisation of the investment programme should take into consideration environmental issues.
The project would improve the quality and efficiency of drinking water supply and wastewater collection and treatment services in the City of Yalta and a number of smaller municipalities along the south coast of the Crimean peninsula. The operation would also support the achievement of important environmental objectives in the Black Sea area by improving water and wastewater management. The project would be structured in accordance with Ukrainian and EU environmental standards that would be directly applicable to the project.
The Company will, together with the project implementation unit and with a help of a reputable international consultant, prepare an Environmental Management Plan (EMP) guiding the Company and the Republic towards achieving wastewater services compliant with international standards. The EMP will be implemented within a timeframe acceptable to the Bank and other parties involved with an intention to protect the Black Sea waters from further pollution.
It is foreseen that the proposed project would include further technical cooperation support:
Update of the Technical Feasibility Study, prepared by COWI in 2001. Funding has been approved by Denmark.
Financial Due Diligence and IFRS Audit of the Company. Funding to be identified. Environmental Management Plan (the “EMP”) estimated at EUR 50,000 envisaged to be financed bilaterally by the EU DABLAS facility for the Black Sea area;
Municipal Development Programme (the “MDP”) for the Republic and the City of Yalta to advise on tariff setting through regulatory advice to the Republic, where the options for non-sovereign lending to the Republic and the secondary cities of Simpheropol, Sebastopol, Eupatoria, Kerch and Theodosia will be further reviewed, estimated at EUR 300,000
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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