Khorog Solid Waste Sub-Project

Location:

Tajikistan

Project number:

46147

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Status:

Signed

PSD disclosed:

01 Sep 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering supporting the Khorog Soild Waste Sub-Project. The EBRD would provide a loan of up to USD 2 million to a Special Purpose Vehicle (the Company) to be created for this project and wholly owned by the City. The Republic of Tajikistan would provide a sovereign guarantee.

The EBRD will also seek an investment grant from Swiss SECO of USD 2 million to facilitate implementation of the sub-project which will address urgently needed solid waste infrastructure rehabilitation needs.

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

Transition Impact

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 revised tariff methodology and associated tariff increases 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.

The Client

Special Purpose Vehicle (the Company) created for this project and wholly owned by the City.

EBRD Finance

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

Project Cost

The total sub-project cost is USD 5.4 million including technical cooperation. The sub-project will be co-financed by an investment grant from Swiss SECO.

Environmental Impact

Categorised IESE. The project is expected to bring substantial environmental, health and safety benefits to the City of Khorog and the surrounding communities through the rehabilitation of waste collection, transportation, and disposal services; increased operational efficiency, and environmental and hygiene standards. Insufficient information is available at this stage to categorise the project, therefore Initial Environmental and Social Examination (IESE) is required to determine the appropriate category and scope of E&S due diligence. The IESE will be carried out once the Feasibility Study has confirmed the exact scope of the project, specifically whether to rehabilitate the existing landfill or develop a new site. In case a new landfill site will be developed, Environmental and Social (E&S) criteria will need to be taken into consideration in the selection of the new site. Further Environmental and Social Due Diligence (ESDD) requirements will be defined following the completion of the IESE. Derogation from the E&S Policy may need to be sought because the limited financial resources available are unlikely to be adequate for meeting the EU environmental requirements relating to recovery, recycling and re-use of waste and disposing of waste as the last resort.

This PSD will be updated once the ESDD results become available.

Technical Cooperation

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

  • Sub-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. (USD 500,000 to be financed by an international donor).
  • 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. (USD 440,000 to be financed by an international 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)

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

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.