Jalalabad Solid Waste Project

Location:

Kyrgyz Republic

Project number:

42472

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

07 Sep 2016

Status:

Board Approved

PSD disclosed:

25 Mar 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a loan of up to EUR 1.5 million to finance critical solid waste investments for the City of Jalalabad (the “City”) and six neighbouring municipalities; Atabekov, Barpy, Tash-Bulak, Yrys, Kyzyl-Tuu, and Suzak (the “Municipalities”).

It is expected that the European Investment Bank would provide an up to EUR 2.5 million co-financing loan and that the EU’s Investment Facility for Central Asia (IFCA) would provide EUR 4 million in the form of a grant.

The proceeds of the loans and the grant will finance urgently needed sanitary landfill, closure of the existing dumpsite, and upgrade of collection and transportation system. The project will result in an improved level of solid waste services and environmental improvements in the City and the Municipalities.

The project will measure success by monitoring the following indicators before and after project implementation: Population with improved solid waste management services. Measured by the number of households with improved solid waste management services multiplied by average household size and total tonnage of solid waste collected and disposed.

Transition Impact

The transition impact of this project is expected to include:

  • Framework for markets: A new cost recovery tariff methodology within affordability constraints will be developed under the project.
  • Setting standards for corporate governance and business conduct: The project is expected to bring improved standards of transparency and governance. Financial and operational performance improvement of the Company will be achieved through the Corporate Development Programme TC to be supported. The Project will also promote regionalization of solid waste management.
  • The expected transition impact rating is ‘good’.

The Client

The loan is made to the Kyrgyz Republic, to be on-lent to the City of Jalalabad for the benefit of its solid waste management company. The ultimate beneficiary is Spetzavtobaza (the “Company”), a municipal establishment providing solid waste management services in the City and the Municipalities.

EBRD Finance

EUR 1.5 million to the Kyrgyz Republic.

Project Cost

EUR 10.2 million.

Environmental Impact

The project has been categorised B. The potential adverse future environmental and social impacts associated with rehabilitation of waste collection, transportation, and disposal services in Jalalabad, closure of the existing dumpsite, and construction of a new EU compliant landfill adjacent to the existing dumpsite are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures.

The project will bring substantial environmental, health and safety benefits to the city of Jalalabad and the and six neighbouring municipalities through the rehabilitation of waste collection, transportation, and disposal services; increased operational efficiency, and environmental and hygiene standards. However, the results of the Feasibility Study indicate that due to the limitations to the budget of the PIP, the waste management system to be introduced will not meet EU requirements relating to prioritising recovery, recycling and re-use of waste and disposing of waste as the last resort only.

The Environmental and Social Due Diligence (ESDD) included an independent environmental and social audit of the Company's current operations and facilities, and an analysis of potential environmental and social issues associated with the proposed PIP. The Company's environmental and social management capabilities were also reviewed and assessed, as well as tariff affordability issues, resettlement, livelihood and gender-related impacts.

The results of the ESDD confirm that the existing waste management practices and facilities are poor and not in compliance with the current EU legislation and the EBRD Performance Requirements. The dumpsite is being operated with insufficient technical equipment and the operation does not comply with basic environmental and health standards. Also, due to the lack of personal protective equipment, health and safety standards for the workers performing waste collection and landfill operations are low. However, the investigations indicate that if adequate technical and operational measures are implemented, the area of to the north of the existing dumpsite can be used for a new sanitary landfill without significant risks to human health and environment pollution.

There are approximately 10 people whose livelihoods depend to a significant extent on collecting secondary materials on the existing dumpsite. A Livelihood Restoration Framework (LRF) has been developed for the project and the Environmental and Social Action Plan requires the Company to identify alternative livelihood options for the waste pickers in accordance with the principles of the LRF and in consultation with the affected people.

An Environmental and Social Action Plan (ESAP) has been developed for mitigation of identified E&S issues and impacts during preparation, construction and operation of the project including the following main areas: development and implementation of EHS management systems; safe closure of the existing dumpsite; establishment of good EHS management practises for waste collection and disposal activities (optimised landfill gas and leachate collection, noise minimisation, avoidance of littering, birds, vermin, use of PPEs, site security and access control, etc.); contractor management; monitoring requirements; customer relations; HR issues; implementation of the LHR; chance find procedures; and stakeholder engagement.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP and resettlement action plan. 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 project. In all cases, the services have been/will be provided in conjunction with the Osh Solid Waste project and the budgets shown are for the total support to both investments.

Pre Loan Signing:

  • Feasibility study consisting of full financial, technical and environmental due diligence of the proposed project and the solid waste sector in Jalalabad. EUR 649,000 financed by EU Investment Facility for Central Asia.
  • Restatement and Audit Services for the Companies. EUR 23,322, financed by the Bank’s own resources

Post Loan Signing:

  • Support to the Project Implementation Unit, Engineering Design Services, Procurement and Contract Supervision. EUR 1.2 million, to be financed by the EBRD Shareholder Special Fund.
  • Corporate Development, City Support (CDP) and Stakeholder Participation Programmes (SPP) comprising support to the Company to optimise operations including improved financial and environmental performance as well as support to the City to raise institutional capacity to effectively manage the project including enhanced environmental monitoring capacity. The SPP will enhance public awareness of solid waste management and project related issues. EUR 700,000, to be financed by a multi-lateral donor.
 

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)

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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.