Isfara Solid Waste Sub-project

Location:

Tajikistan

Project number:

46796

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

19 Dec 2017

Status:

Board Approved

PSD disclosed:

17 Jul 2017

Translated version of this PSD: Russian

Project Description

Isfara Solid Waste: a sixth sub-project under the Tajikistan Solid Waste Framework approved in December 2014. The EBRD would provide a loan of up to USD 2 million to BOGHI ISMOILI SOMONI, a municipal Solid Waste utility operating in the City of Isfara (the "Client" or the "Company"). The Republic of Tajikistan would provide a sovereign guarantee. An investment grant of up to USD 2 million would be provided by EU Infrastructure Facility for Central
Asia (IFCA) to facilitate implementation of the sub-project which will address critical solid waste infrastructure rehabilitation and improvement needs.
The proceeds of the loan and the grant will be channelled to finance construction of a new sanitary landfill as well as upgrade of solid waste collection and transportation systems. The project will result in an improved level of solid waste services and environmental standards in the city of Isfara.

Project Objectives

The overall objectives of this sub-project are to: (a) rehabilitate the solid waste infrastructure in the city of Isfara; and (b) improve financial and operational management of the Client.

Transition Impact

Good.

Transition Impact of the sub-project would be:

  • Improved standards of transparency and governance via the introduction of a Public Service Contract
     
  • Development of a tariff methodology and associated tariff amendments and increased collection rates;
     
  • Capacity building of the solid waste company through the preparation of a business plan, FOPIP, IFRS, MIS, accounts separation between landfill and waste collection;
     
  • Introduction of a formal consultation process with solid waste services users in form of a community based stakeholder participation programme.

Moreover, the environmental standards of the project will be substantially higher than local  standards/practices. The project may also achieve inclusion impact by providing solid waste services to households currently not covered and improving health and living standards via controlled waste collection and landfill operations.

Client Information

BOGHI ISMOILI SOMONI

A municipal solid waste utility of the city of Isfara.
Street 20 Markazi
City of Isfara, Tajikistan.

EBRD Finance Summary

USD 2,000,000.00

A loan of up to USD 2.0 million to the Client under the sovereign guarantee

Total Project Cost

USD 4,000,000.00

The project Capex is up to USD 4 million, co-financed by EU Infrastructure Facility for Central Asia.

Additional Technical Cooperation support is up to 1.4 million.

Environmental and Social Summary

The project has been categorised B in accordance with the Bank's 2008 Environmental and Social (E&S) Policy, following an Initial Environmental and Social Examination ("IESE"). The IESE confirmed that the Project's potential adverse impacts would be localised and readily addressed through careful design, the implementation of mitigation measures and appropriate management practices. The environmental and social due diligence ("ESDD") carried out by independent consultants covered a review of the solid waste management company's current environmental and social management practices and existing facilities and operations, and an Environmental and Social Analysis of the Project.

The ESDD showed that the Company's current waste management practices and facilities are poor and do not comply with the relevant EU standards or the EBRD Performance Requirements ("PRs"). At present, solid waste is disposed of at the dumpsite managed by the Company. Operations at the site do not meet basic environmental, health and safety standards, and health and safety standards for workers performing waste collection and landfill operations are low.

The Project will bring substantial environmental, health and safety benefits through the rehabilitation of waste collection, transportation, and disposal services, as well as increased operational efficiency, and improved environmental and hygiene standards. The E&S Analysis indicates that the project will
not result in any significant E&S impacts. The natural conditions beneath the new landfill site provide a low permeability natural barrier. Groundwater table is expected in depths below 100m. No surface waters or aquifers are known nearby. Penetration of leachate to lower levels is unlikely due to low precipitation, high evaporation, high water retention capacity of MSW and the underground and the low permeability of the underground. This, in conjunction with the geomembrane liner system that will be put in place as part of the project, will protect soil, surface water and groundwater from leachate and subsequent contamination. The leachate will be collected and recirculated to the landfill. Landfill gas will be collected and flared once there is sufficient methane production. The currently existing waste in the dumpsite will be re-disposed in the newly constructed landfill cells, resulting in significant benefits for not only public and worker health and safety but also the environment.

Currently, the hazardous waste from the households cannot be separately collected; hence a small quantity of hazardous waste will mix in the municipal solid waste (less than 1 per cent) and will be disposed in the landfill. Considering the location of the landfill, robust design and the operational measures that will be put in place, the mixing of this small quantity is not expected to result in any significant risk for environment or human health.

Despite all the improvements, further investments would be needed to achieve compliance with EBRD PRs and EU Directives with respect to management of hazardous and medical waste, as well as waste recovery and recycling. Therefore, on account of limited financial resources and affordability constraints, derogation from the 2008 Environmental and Social Policy ("ESP") is sought.

The shortfalls from EU requirements are not considered to pose significant environmental, health or safety risks.

The nearest settlement from the landfill site is 5 km. Six waste pickers were observed by the ESDD consultants during one of their site visits. During five other site visits from January till the end of April 2016, no waste pickers were observed. Hence, given the distance of the landfill from the nearest
settlements and no further confirmation of waste picking activities by observation or interviews, it is expected that no livelihood impacts from waste picking will occur. An ESAP has been prepared and will be agreed with the Client before signing to address the identified environmental and social issues and impacts during preparation, construction and operation of the project to bring the Project closer to meeting EBRD Performance Requirements. The ESAP requirements include development and implementation of an integrated E&S management system in line with the requirements of ISO 14001 and OHSAS 18001 and the associated policies, plans and procedures; development of the local EIA in accordance with the national legislation and the EU EIA Directive and obtaining the approval; implementation of a tariff support programme for poorest households; development of human resources policy and related procedures; implementation of a grievance mechanism for workers; inclusion of ESAP requirements in tenders and contracts; inclusion of E&S mitigation measures and requirements in detailed design and equipment specifications; provision of personal protective equipment to workers; preparation of an
emergency response plan; and implementation and regular update of the Stakeholder Engagement Plan.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP. The Bank will conduct monitoring visits, as required, and commission a completion audit.

Technical Cooperation

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

  • Feasibility Study. To assist in the fully preparation of the Sub-Project including technical, financial and environmental and social aspects. Cost of the TC assignment was EUR 280,000, financed by the Government of the Austria.
     
  • Project Implementation Support. International consultants to assist the sub-project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, sub-project management and reporting. Estimated cost of TC assignment is up to EUR 500,000, proposed to be financed by an international donor or EBRD Shareholder Special Fund ("SSF")
     
  • Corporate Development and Stakeholder Participation Programme: (i) support institutional development in the form of operational improvements and financial improvements to secure sustainability of the water company; and (ii) implement a Stakeholder Participation Programme.

    Estimated cost of the TC assignment is up to EUR 350,000, to be financed by an international donor or SSF.

Company Contact Information

Maruf Buzurukkhujaev
mbbm78@mail.ru
+992 918 79 35 66
+992 928 79 35 66
Street 20 Markazi, City of Isfara, Tajikistan

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