GrCF: UKT Tirana Water Company

Location:

Albania

Project number:

49161

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

14 Feb 2018

Status:

Disbursing

PSD disclosed:

09 Aug 2017

Translated version of this PSD: Albanian

Project Description

Provision of a loan of up to EUR 30 million to Ujesjelles Kanalizime Tirana ("UKT" or the "Company"), Tirana's Water & Wastewater Utility Company, in two tranches: the first tranche of up to EUR 15 million ("Tranche 1") to be committed upon signing and the second tranche of up to EUR 15 million ("Tranche 2"), uncommitted. The proceeds of Tranche 1 will be used for: i) extension of the capacity of the Bovilla Water Treatment Plant ("WTP") and ii) construction of a new water pipeline that will transfer water from Bovilla Water Treatment Plant to the north western part of the City of Tirana by gravity.

The proceeds of Tranche 2 would be determined at a later stage once a study on UKT's Strategic Water Resources is completed. The study will determine the most cost-efficient and economically viable investment to further address Tirana's water shortage, assessing both demand-side and supply-side strategic options. Supply-side options could include exploiting new water sources, such as the Guri I Bardhe, demand-side options could include rehabilitating Tirana's water network and installing strategic flow/pressure meters, or a mix of solutions.

The project is a sub-project under the Green Cities Framework ("GrCF").

Project Objectives

The Project aims to assist the Company in: i) providing a more resilient water system, reaching its objective of providing a 24 hour water supply by 2021, and ii) reducing the Company's operational costs by supplying water by gravity versus the high cost of pumping groundwater.

Transition Impact

The transition impact of the proposed project will be achieved through:

  • As a subproject under the GrCF, the project will support the development of a Green City Action Plan ("GCAP") to identify, benchmark and rank environmental challenges in the city and further prioritise investments and other activities to address those challenges.
     
  • The project includes the preparation of a public service contract between UKT and the city of Tirana to improve predictability and accountability for UKT
     
  • The project is in line with the Green Economy Transition.

The project includes a Corporate Development Programme that will help UKT improve its operations and financial sustainability.

Client Information

UJESJELLES KANALIZIME TIRANE

EBRD Finance Summary

EUR 30,000,000.00

Total Project Cost

EUR 34,000,000.00

Environmental and Social Summary

Categorised B in accordance with the 2014 Environmental and Social Policy. The increase in capacity of the Bovilla WTP and the construction of a new pipeline from Bovilla WTP to the north western part of the City of Tirana will provide significant community benefits by contributing to UKT's goal of achieving an uninterrupted 24/7 water supply service by 2021. It will also provide positive long-term environmental benefits impacts in reducing energy costs by transfer of water through gravitation to the north western part of the City, which is currently being serviced by pumping groundwater from depleting wells. Any adverse future environmental and social impacts associated with the project are site-specific and can be readily addressed through mitigation measures.

Tranche 2 will be determined at a later stage once a water resources study is completed which will determine the most cost-efficient and economically viable investment to further address Tirana's water shortage, assessing both demand-side and supply-side strategic options.

The Environmental and Social Due Diligence ("ESDD") will be carried out by external consultants as part of the feasibility study and will include an independent E&S analysis of potential E&S impacts associated with the Tranche I of the Project. The ESDD for Tranche II will be carried out once the use of proceeds is determined, and may include an Environmental and Social Impact assessment if necessary.

An Environmental and Social Action Plan ("ESAP") and a Stakeholder Engagement Plan ("SEP") will be developed for the Project and will include a grievance mechanism. Additionally, information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Non-technical summary

Technical Cooperation

EBRD will mobilise funds from donors to support the following technical cooperation:

Pre-signing

  • Tranche 1: Technical and Environmental and Social due diligence comprising review of existing designs and other project documentation (EUR 75,000, funded from the Bank's own resources).
     
  • Tranche 2: Water Resources Management study to determine the most cost-efficient and economically viable investment to further address Tirana's water shortage, assessing both demand-side and supply-side strategic options. Supply-side options could include exploiting new water sources, such as the Guri I Bardhe, demand-side options could include rehabilitating Tirana's water network and installing strategic flow/pressure meters, or a mix of solutions (EUR 75,000, funded from the Bank's own resources).

Post-signing

  • Corporate Development Programme ("CDP") and Stakeholder Participation Programme ("SPP").

    The TC will: (i) support institutional development in the form of operational improvements and financial improvements through development of CDP, (ii) support preparation and signing of a PSC between the City and UKT; and (iii) implement a SPP. The estimated cost of the assignment is EUR 200,000, included under the GrCF CDP Framework-level TC, proposed to be financed by an international donor or the SSF.

Company Contact Information

Redi Molla
redimolla@gmail.com
+355 69 258 2402
www.ujesjellesitirane.al
Ujesjelles Kanalizime Tirane, Rruga: Besim Daja, Tirane, Shqiperi

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.

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