Green Cities: Chisinau Solid Waste

Location:

Moldova

Project number:

47314

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

A

Approval date:

02 Dec 2020

Status:

Disbursing

PSD disclosed:

10 Aug 2017

Project Description

The project comprises a sub-sovereign loan of up to EUR 9 million to Regia Autosalubritate, a municipal solid waste management company. The loan will be guaranteed by the municipality and is expected to be co-financed with an EIB loan of up to EUR 9 million and an investment grant of up to EUR 5.0 million from E5P.

The proceeds of the loans and grant will finance a priority investment programme in solid waste management, including: (i) closure of the recently re-opened section of the Tintareni landfill and rehabilitation and upgrade of the remaining sections of the Tintareni landfill to EU standards; (ii) rehabilitation of the access road to the landfill; (iii) closure of a temporary dumpsite in Ciocana, Chisinau; (iv) renewal of the Company's vehicle fleet; and (v) refurbishment of the existing transfer station and investment into a waste sorting plant.

Project Objectives

The project aims to contribute to an improved level of solid waste services and overall improved environmental situation in Chisinau.

Transition Impact

ETI score: 63

Good.

The project will have the following Transition Impact:

  1. Green:  The primary goal is to achieve significant environmental improvements and promote the green transition quality in Chisinau.
     
  2. Well-governed: The Project will mandate the introduction of cost recovery charges for the users of infrastructure. Development and adoption of a full cost recovery tariff methodology for solid waste services, taking into account affordability constraints, will be facilitated with TC support as well as the preparation and adoption of a Public Service Contract (PSC) to establish transparent contractual arrangements for solid waste service provision. The PSC is expected to set out clear rights and obligations, with clear Key Performance Indicators and related methodology for service payments, which will provide incentives and predictability for the Company.

 The Chisinau Solid Waste project will contribute to an improved level of solid waste services, and improve the environmental situation in the city of Chisinau.

Client Information

SOLID WASTE MANAGEMENT COMPANY OF THE CITY OF CHISINAU

The borrower will be Regia Autosalubritate that is fully owned by the City of Chisinau and responsible for collection, transportation and disposal of municipal waste as well as for operation of landfills. It employs 341 people and collects 1.6 million tonnes of waste per year with up to 65 per cent organic and 23 per cent recyclable . Collection and transportation is carried out using a fleet of 55 specialised vehicles. Sorting operations are limited to glass and plastic. It is a self-financed legal entity and includes all the property and operational assets required for its functioning.

EBRD Finance Summary

EUR 9,000,000.00

Total Project Cost

EUR 30,960,000.00

Environmental and Social Summary

Categorised A (ESP 2014). The project involves upgrading of the existing non-operational Tintareni landfill to EU standards and recommencing its operations as well as closing down the temporary Ciocana landfill. It has required a formalised and participatory Environmental and Social Impact Assessment (ESIA) process, because the potentially significant adverse future environmental and/or social impacts could not readily be identified or assessed at the time of categorisation. The ESIA disclosure package including the ESIA study, Non-Technical Summary (NTS), Stakeholder Engagement Plan (SEP), Environmental and Social Management Plan (ESMP), Environmental and Social Action Plan (ESAP), Livelihood Restoration Framework (LRF) and Hydrogeological Risk Assessment (HRA) have been disclosed in Romanian and English languages for public review and comments on 10 August 2017 locally and at the client's and the EBRD's websites.

The Bank's Environmental and Social Due Diligence (ESDD) for the project has included a review of the ESIA documents, public disclosure and consultation process and an environmental and social (E&S) review of the existing waste management facilities and operations. The national Environmental Impact Assessment (EIA) in the format required by the Ministry of Environment (MoE) has been submitted to the authorities for consideration as part of the permitting process.

ESDD has concluded that the project will result in a number of  E&S benefits, including improved residential waste collection services and increased recycling of waste; landfill operations with strict environmental, health, safety and social management controls; closure of the Ciocana dump site and other small dumpsites that will reduce and minimise pollution to the environment; construction of an improved access road and road maintenance that will also benefit local community; and enhancement of livelihoods and other benefits for the residents of Tintareni.

The non-operational Tintareni landfill site is located in a rural setting with agricultural land surrounding the site. No houses are located adjacent to the landfill and the nearest settlements are approximately 2.7km to the west and the south of the site (Cretoaia Village and Geamana respectively). The landfill site is fenced with a single point of access with a supervised gate. The landfill has a leachate collection and storage system in place. Leachate continues to be recirculated by collection from the underground tanks into road tankers with the contents emptied at the top of the landfill. There is a gas collection and utilisation system which is used to generate electrical energy, which is fed into the grid. The excess gases are flared.

The operations of Tintareni landfill started in 1991 and were put on hold in 2010 due to complaints in the village regarding alleged pollution of groundwater. To fully assess the situation and associated risks, the Bank commissioned detailed geology and hydrogeology surveys and a quantitative Hydrogeological Risk Assessment (HRA) to establish the potential for any uncontrolled emissions to migrate to local receptors, including surface and groundwater abstractions. The results of HRA indicate the risk of the current landfill to the identified receptors is low, although some elevated concentrations of pollutants (ammoniacal nitrogen, chloride, sulphate and fluoride) was identified in the underlying groundwater and the immediate vicinity of the landfill. Theoretical discharges have been assessed and they do not represent a significant risk to receptors located more than 500m from the site. Following the HRA, a number of recommendations were proposed that were included in the ESAP. The landfill is to be subject to additional engineering works and management controls which have the potential to improve the current site and reduce leakages from the current waste body. Prior to the reopening, the landfill requires upgrades to ensure the facility is aligned with the EU Landfill Directive. Elements of this upgrade include a new leachate treatment plant; installation of interim lining; stabilising the embankment; re-profiling of slopes; water collection systems; a new gas collection and utilisation system; installation of monitoring wells; and reconstruction of the access road.

A closure plan has been developed for the Ciocana dumpsite, which has been in use since the closure of Tintareni Landfill in 2010. The closure plan includes measures including surface sealing; leachate drainage system; landfill gas management system and flare station; surface water management system; monitoring wells; access road and perimeter fence; topsoil and landscaping; and aftercare monitoring.

ESDD identified that the Ciocana dumpsite is being used by informal waste pickers. As such, it is estimated that approximately 50 waste pickers and their households will no longer be able to engage in this activity after the waste dump is closed. Of the estimated 50 waste pickers, only 15 to 20 regularly engage in waste picking, while the others visit the site occasionally. To compensate for the loss of livelihoods of the waste pickers, a Livelihood Restoration Framework (LRF) has been developed in compliance with Moldovan legislation and the EBRD Performance Requirement 5 (PR5). The LRF presents activities, which will be undertaken by Regia Autosalubritate, such as consultations with affected people, the establishment and implementation of a project grievance mechanism, carrying out a census and establishing a cut-off date for eligibility for assistance, as well as monitoring the implementation of livelihood restoration measures and reporting on progress and outcomes to the EBRD.

A Stakeholder Engagement Plan (SEP) has been developed for the project with the objective of identifying key stakeholders and ensuring that they are informed in a timely manner of the potential impacts of the project. The plan also presents a formal grievance mechanism to be used by stakeholders for dealing with complaints, concerns, queries etc. It will be reviewed and updated on a regular basis. If activities change or new activities relating to stakeholder engagement commence, the SEP will be brought up to date. The SEP will also be reviewed periodically during project implementation and updated as necessary.

ESAP has been prepared to address the findings of the ESDD and improve EHSS performance and risk management as well as to structure the proposed waste operations to comply with the EBRD performance requirements, including EU standards and relevant national regulatory requirements. Key measures under the ESAP include: development and implementation of an environmental and health and safety management system in line with internationally recognised ISO14001 and OHSAS18001 standards; ensuring all necessary environmental permits are obtained for the implementation of the project; development of  measures to effectively contain waste and waste leachate in vehicles during transportation to Tintareni landfill, the transfer station and sorting station; ensuring the landfill design and operating procedures comply with the EU Landfill Directive; reinforcing stability of the landfill and the dumpsite; incorporating EHSS conditions and mitigation measures into tendering and selection process of contractors and ensuring contractors develop and implement a Construction, Environmental Management Plan; implementation of  regular contractor inspections / audits and meetings with contractors; implementation of the Ciocana Dump site closure plan; undertaking a Health and Safety (H&S) risk assessment; development of formal employment policies; implementation of the SEP and grievance mechanism if there are complaints; disclosure of project documentation and undertake further stakeholder consultation; implementation of the LRF; development of a monitoring protocol for affordability and procedure; implementation of a wider program for raising public awareness of waste management; and ensuring that all community actions to benefit the residents of Tintareni village are implemented, as agreed with the community.

During implementation the client will be supported and supervised by consultants funded by technical cooperation. EBRD will be monitoring the implementation of the project and of the ESAP as well as the environmental and social performance of the project through reviewing the client's annual environmental and social reports and undertaking monitoring visits by EBRD environmental and social specialists as needed.

Update (as of April 2022)

There have been further delays to the project implementation after the preparation of the ESIA addendum and the project design has been revised again in 2021. The Bank has engaged a consultant in February 2022 to carry out a further amendment of the ESIA package based on the final design and on-going waste disposal operations since 2017. This PSD will be updated and amendments to the ESIA package will be disclosed once the review is completed.

Technical Cooperation and Grant Financing

Feasibility Study, consisting of full financial, technical and economic due diligence of the Project. Cost of the TC assignment is EUR 390,729, financed by the Government of Sweden.

Environmental and Social Impact Assessment (ESIA) financed out of the Bank's Shareholder Special Fund (SSF) in amount of EUR 249,160.

Post Loan Signing the following TCs will be implemented:

  • Project Implementation Support.  The TC will support the PIU with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting.  The estimated cost of the assignment is EUR 550,000, with financing source to be defined.
     
  • Corporate Development and Stakeholder Participation Programme.  The TC will (i) support institutional development in the form of operational improvements and financial improvements to secure sustainability of solid waste management services and PSC implementation;  and (ii) implement a SPP, aimed at enhancing public ownership by encouraging recycling, re-use and safe disposal, increasing public participation in the provision of sustainable waste management practics and raising public awareness on issues related to the project implementation and resource efficiency.  The estimated cost of the assignment is EUR 300,000, with the financing source still to be defined.

Company Contact Information

Mrs. Mariana Nazarenco
regia-auto@mail.ru
tel. +373 22 740919; +373 22 746842
14, 27 Martie 1918 Street, Chisinau, MD-2069 Moldova

PSD last updated

05 May 2022

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.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

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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