Kara-Suu Water sub-project

Location:

Kyrgyz Republic

Project number:

46345

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

05 Apr 2016

Status:

Repaying

PSD disclosed:

28 Jan 2016

Translated version of this PSD: Russian

Project Description

In 2011 the EBRD established a sovereign framework of up to EUR 20 million to co-finance with international donors priority water and wastewater rehabilitation projects across the Kyrgyz Republic.

Under the framework the Bank provides sovereign loans, on-lent or on-granted to participating water companies. The sub-projects address urgently needed water and wastewater infrastructure rehabilitation needs. The original framework is now fully subscribed and the Bank has approved an extension of the facility of EUR 20 million.

Under the extended framework the EBRD is considering supporting the Kara-suu Water Sub-Project.

The EBRD would extend a sovereign loan of up to EUR 1.0 million to the Kyrgyz Republic, to be transferred to Kara-suu City for the benefit of the Kara-suu Water Company for improvement of water supply and selected wastewater services.

The EU Investment Facility for Central Asia (IFCA) will provide a grant in the amount of EUR 3.3 million to co-finance implementation of the sub-project. Additional co-financing in the amount of EUR 1.0 million is expected from an IFI.

Project Objectives

The overall objectives of this sub-project are to: (a) rehabilitate the water supply and selected wastewater improvements; and (b) improve financial and operational management.

Transition Impact

Transition Impact of the sub-project would be:

  • Improved access to basic public utilities;· Introduction of tariff reform within affordability limits;·
     
  • Higher collection rates;· Establishment of a contractual arrangement between the city and the company;· Improvement of operational and financial management of the Kara-suu Water Company (including preparation and publication of IFRS and a business plan, training on procurement, etc.);
     
  • and· Introduction of a formal consultation process with water users in form of a community-based stakeholder participation programme.

Client Information

KYRGYZ REPUBLIC

Government of the Kyrgyz Republic, Kara-suu City and the Kara-suu Water Company.

EBRD Finance Summary

EUR 1,000,000.00

Sovereign loan of up to EUR 1.0 million to the Kyrgyz Republic transferred to Kara-suu City for the benefit of the Kara-suu Water Company.

Total Project Cost

EUR 5,300,000.00

The total sub-project cost is EUR 6.6 million including technical cooperation.

Environmental and Social Summary

Categorised B in accordance with 2014 Environmental and Social Policy. The Environmental and Social (E&S) due diligence (ESDD) for the proposed Priority Investment Programme (PIP) has been carried out as part of the Feasibility Study by independent consultants. The ESDD showed that the implementation of the sub-project will significantly increase access to safe drinking water through improving the efficiency and reliability of water supply services in Kara-suu. Any adverse impacts will be limited, localised and temporary, and prevented or mitigated by adhering to good construction practices.

The sub-project will improve the current poor microbiological quality of drinking water in Kara-suu by rehabilitation of the existing water pipes, as well as by appropriate application of disinfection treatment at the water sources (intakes) contributing to improving public health. The rehabilitation  and extension of the water supply system will increase the total population benefitting from improved access to tap water from 10,600 in 2014 to 13,500 in 2018. The implementation of the PIP will also reduce water losses from current 75 per cent of production to 59 per cent in 2018.

There is currently no central wastewater collection and treatment in Kara-suu. Most of wastewater is disposed into private cesspools. Overflows from cesspools and uncontrolled discharges of untreated wastewater from the existing wastewater collection system pose a significant contamination risk to the environment, groundwater resources and human health. Construction of a new sewage collection system for a selected area of the City and the upgraded wastewater treatment plant under the PIP will reduce this risk significantly. Long term investments will also be required for further extension of the collection system and wastewater treatment capacity to provide services to the whole population and to achieve compliance with the national and EU standards.

Technical Cooperation

Pre Loan Signing

TC 1: Feasibility Study for the Kara-suu Water Sub-project. Preparation of a financial, technical, environmental and social feasibility study. The cost of this assignment is EUR 280,000, financed by the Government of the Czech Republic.

TC 2: Audit and restatement of the financial accounts. The cost of this assignment is EUR 13,070, financed by the Bank's own resources.

Post Loan Signing

TC 3: Project Implementation Support to the Company to: (i) assist the PIU with engineering design, procurement and construction supervision. The estimated cost of this assignment is EUR 600,000, financed by the ETC Fund.

TC 4: Corporate Development Programme and Stakeholder Participation Programme. The estimated cost of this assignment is EUR 420,000 proposed to be financed by an international donor or the SSF.

Company Contact Information

Zarlyk Turgunbaev
Merya.karasuu@mail.ru
+996 312 624013
+996 312 666284
Kara-suu Merya Kara-suu
Business op

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

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

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Text of the PIP

Project Complaint Mechanism (PCM)

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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.