Georgia Solid Waste Management Project

Location:

Georgia

Project number:

48098

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

06 Jul 2016

Status:

Disbursing

PSD disclosed:

08 Feb 2016

Translated version of this PSD: Georgian

Project Description

The EBRD is extending a sovereign loan of up to €10 million to the state of Georgia for the benefit of Georgian Municipalities, responsible for solid waste collection services.

It is envisaged that the project will be co-financed by a capital grant of up to €5 million provided by an international donor(s).

Project Objectives

The project will finance the acquisition of a new fleet of solid waste collection vehicles, solid waste containers and related equipment.

In addition, the project will support the Municipalities to prepare Waste Management Plans and implement Stakeholder Participation Programmes.

Transition Impact

Transition Impact of the project would be:

  • Establishment of transparent contractual arrangements for municipal service provision;·
  • Commercialisation and improved financial sustainability of solid waste collection services through
  • Public Service Contacts and outsourcing arrangements; · Enabling EU-compliant solid waste disposal; and
  • Implementation of a Stakeholder Participation Programme for enhanced public awareness.

Client Information

GEORGIA

The Government of Georgia and participating municipalities.

EBRD Finance Summary

EUR 10,000,000.00

€10 million sovereign loan to the state of Georgia to be co-financed by a capital grant of up to €5 million provided by an international donor(s) for the benefit of Georgian municipalities.

Total Project Cost

EUR 18,600,000.00

The total project cost is €18.6 million including grant co-financing provided by an international donor(s), a local contribution (for investment and technical assistance) plus additional technical assistance to support project preparation and implementation.

Environmental and Social Summary

Categorised B (ESP 2014). Acquisition and operation of solid waste vehicles and containers is expected to have mostly beneficial effects. The project will support overall improvement of waste management practices and enhance people’s daily lives by reducing health hazards caused by unsanitary waste handling. Any potential adverse environmental and social impacts are expected to be site-specific and manageable through implementation of ESAP.

The Environmental and Social Due Diligence (“ESDD”) has been undertaken by ESD and included a review of the applicable environmental, safety and social requirements, current waste management practices as well as an analysis of environmental and social impacts and benefits associated with the project to ensure the proposed specifications for the equipment will meet EU requirements. In the course of ESDD the site visits and meetings were carried out in the Solid Waste Management Company of Georgia, selected municipalities, Ministry of Regional Development and Infrastructure and the Ministry of Environment in order to determine the arrangement that would make it possible to implement the Project in line with the Bank’s requirements.

The potential issues identified during the ESDD included the lack of general waste management awareness, insufficient enforcement of the safety and health requirements, traffic and driving safety, and lacking infrastructure for security of the SW collection vehicles.

An agreement has been reached with the Borrower on the specific institutional arrangements to ensure that the Project is duly implemented throughout the whole lifecycle in compliance with the EBRD’S ESP. In that respect Municipal Development Fund (MDF) will be acting as the PIU helping municipalities implement EBRD’s ESP and ESAP requirements and help in delivering the required TC support as well as performing periodic monitoring and annual reporting.

An ESAP has been developed and agreed to address the identified issues and includes requirements to comply with national health and safety rules, improvements of driving safety, development and implementation of the Solid Waste Management Plans.

The project will be closely monitored by EBRD through a customized annual environmental and social report form accepted by the Borrower.

Technical Cooperation

The following technical co-operation (TC) assignments are included as part of this project:

Pre-signing

  • TC 1: Technical and Financial Due Diligence and Pre-signing Procurement Support. The cost of this assignment is €150,000, financed by the E5P portion of the EBRD Shareholder Special Fund (SSF).
     
  • TC 2: Green City Action Plan to prioritise investments in pursuit of the green agenda. €150,000, to be supported under the SRI Policy Dialogue Framework Energy and Integrated Resources Window, financed by the Governments of Slovak Republic, Czech Republic and Spain.

Post-signing

  • TC 3: Support to the Municipalities to prepare Waste Management Plans, including support to ESAP and SPP implementation. The estimated cost of this assignment is €300,000, proposed to be financed by a bilateral or multilateral donor or the SSF.

Company Contact Information

Avtandil Tskhvitava, Procurement Specialist
atskhvitava@mdf.org.ge

00995 32 243 70 01
00995 32 243 70 77

www.mdf.org.ge

Municipal Development Fund of Georgia #150, D. Aghmashenebeli Ave., Tbilisi, 0112, Georgia

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

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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.