Enhanced Partnership – Solid Waste Modernisation Framework

Location:

Kazakhstan

Project number:

47036

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

FW

Status:

Cancelled

PSD disclosed:

03 Nov 2014

Translated version of this PSD: Russian 

Project Description

Under the Enhanced Partnership – Solid Waste Modernisation Framework the EBRD is considering financing priority capital investments in solid waste management sector for selected cities in Kazakhstan. The Framework consists of sub-projects aimed at improving the solid waste infrastructure. This Framework is integral part of Enhanced Partnership Framework Arrangements, signed between the EBRD and Government of Kazakhstan in May 2014. The framework is also supported by the Climate Investment Funds under the 2013 Kazakhstan Clean Technology Fund Investment Plan.

Loans will be provided to local utilities and proceeds from loans and local contribution where relevant for each sub-project will address urgent needs in modernisation of solid waste infrastructure in respective cities.

The Bank will closely monitor the progress of the framework. For each sub-project, it is proposed that the following indicators be monitored before and after the project implementation:

  • Population with improved solid waste management services, measured by the number of households multiplied by the average household size.
  • Implementation of the financial and operational targets through technical assistance.

Transition Impact

Within the partnership agreement, EBRD intends to conduct policy dialogue with the government to improve the national policy and regulatory frameworks. Specific areas of focus are:

(i) Development of a model Public Service Contract for solid waste sector with performance indicators to be deployed across the country
(ii) Corporate Development and Restructuring focused on cost reduction measures in all participating utilities
(iii) Tariff increases and improved collection rates with the aim of achieving operating cost recovery in all participating utilities
(iv) Private sector participation – in the form of management contracts, leases or concessions - on a case by case basis
(v) Application of production of “green” energy

The Client

Solid waste management services company in each participating city.

EBRD Finance

For each sub-project the EBRD will provide financing to the solid waste management services companies. Total amount of EBRD financing proposed under the framework: EUR 150 million.

EBRD sub-projects may be co-financed by concessional loans under the Clean Technology Fund (CTF) Kazakh Waste Management Framework, with up to USD 27 million available for concessional co-financing.

Sub-projects may also be co-financed by local contribution provided by local authorities or the Government of Kazakhstan.

Project Cost

tbd

Environmental Impact

The Framework is not categorised; however, each sub-project under the Framework will be categorised at concept review stage and will undergo separate Environmental and Social Due Diligence (ESDD). The Framework will facilitate improvements to waste management services for various cities across Kazakhstan and have significant environmental, and community health and safety benefits. The ESDD for each sub-project will include at minimum an assessment of potential environmental and social (E&S) impacts and benefits, and an E&S audit of the operations and facilities of each participating Municipality to help structure the PIPs.

The sub-projects will aim to achieve EU compliance and good industry practice, and also adopt EU Best Available Techniques (BAT), where applicable. Corrective Environmental and Social Action Plans (ESAPs) and Stakeholder Engagement Plans (SEPs) will be prepared for implementation during the project preparation, where necessary A separate PSD will be published for each sub-project under the Framework and will include a detailed E&S section upon completion of ESDD.

Technical Cooperation

Each sub-project will have individually designed pre- and post-signing TCs; typically this will include:

Pre Signing

Feasibility Studies which may consist of financial, technical and environmental and social due diligence. The estimated average cost of the assignment, per sub-project, is EUR 300,000.

IFRS audit of the financial statements of prospective borrowers. The estimated average cost of the assignment, per sub-project, is EUR 50,000.

Post Signing

Project Implementation Support to facilitate the timely and effective implementation of the sub-project by rendering assistance to the utility in areas such as engineering design, procurement, contract administration, engineering supervision, financial control and project management/reporting. The estimated average cost of the assignment, per sub-project, is EUR 600,000.

Corporate Development Plan, Financial and Operational Performance Improvements Programme, Creditworthiness Enhancement Programme or similar type assignments, which may support operational and financial improvements, secure the sustainability of operations and improve the entities ability to attract and manage investment finance in the future. The estimated average cost of each assignment, per sub-project, is EUR 400,000.

Public Service Contracts: The development and introduction of PSCs between each company and respective Akimat to ensure the sustainable development of the partner companies in the long-term. The estimated average cost of the assignment, per sub-project, is EUR 50,000.

 

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

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.