Khujand Solid Waste Management Project

Location:

Tajikistan

Project number:

41769

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

22 Nov 2011

Status:

Signed

PSD disclosed:

06 Sep 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing financing for a programme of priority capital investments, to improve the municipal solid waste management services in the City of Khujand, the capital of Soughd Province in the north of the country. The project objectives include:

(i) rehabilitation of waste collection, transportation, recycling and disposal services in Khujand and the surrounding area;
(ii) restructuring of the waste management sector to increase operational efficiency and hygiene standards; and
(iii) the commercialisation and corporatisation of the waste management operations of the solid waste management company to convert it into a financially and operationally self-sustainable entity

Transition Impact

The transition impact of this project is expected to include:

  • Establishment of an independent solid waste company;
  • Introduction of tariff reform within affordability limits including support to low income groups;
  • Increased collection rates and cost recovery;
  • Improvements to the operational and financial management of the solid waste management company, together with enhanced transparency and corporate governance; and
  • Introduction of higher enhanced environmental standards, including recycling activities, in solid waste collection and landfill management.

The Client

The client for this project is the State Enterprise “Special Sanitary Cleaning Motor Pool” in the City of Khujand (the “Company”) responsible for solid waste collection in the City and surrounding area and utilisation of the collected waste at the City landfill.

EBRD Finance

When approved by the EBRD’s Board of Directors, the Bank will provide a sovereign guaranteed loan to the Company in the amount of US$ 2.5 million.

Project Cost

US$ 2.5 million including related technical cooperation to support the Company with the project preparation, implementation and its corporate development.

It is expected that the proceeds of the loan will be supplemented by an investment grant of US$ 2.5 million, subject to availability, to be provided by bilateral donors or the EBRD Shareholder Special Fund.

Environmental Impact

The potential adverse future environmental and social (E&S) impacts associated with the purchase of waste collection trucks, restructuring waste management system and rehabilitation and extension of the existing landfill are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. Therefore, the project is categorised “B”.

The Environmental and Social Due Diligence (ESDD), which is currently underway includes an independent environmental and social audit of the Company's current operations and facilities, including the existing landfill, maintenance depots, and the existing waste management fleet, and an analysis of potential environmental and social issues associated with the proposed Priority Investment Programme (PIP). The Company's environmental and social management capabilities are also being reviewed and assessed, together with tariff affordability issues, livelihood and gender-related impacts.

As part of the Project, the old part of the landfill will be closed and an extension will be constructed. The old landfill will be taken out of operation immediately after the new extention of the landfill is constructed. The initial results of the ESDD confirms that the existing waste management practices and facilities are not in compliance with the current EU legislation and the EBRD's requirements. Currently, the available machinery capacity and human resources for waste collection are rather limited and cannot cover an increase of the waste collection volume. The landfill site is being operated with very limited technical equipment and the operation does not comply with basic environmental and health standards. Also due to the lack of personnal protective equipment, health and safety standards for the workers performing waste collection and landfill operations are very poor. However, the initial investigations indicate that if adequate technical and operational measures are implemented, the area of the existing landfill can be used for future extension without significant risks to human health and environment pollution.

The project will bring substantial environmental, health and safety benefits to the town of Khujand and the surrounding communities, by rehabilitation of waste collection, transportation, recycling and disposal services, increased operational efficiency and environment and hygiene standards. However, the initial results of the Feasibility Study indicates that due to the limitations to the budget of the PIP, no gas collection and flaring system or the need for long-term institutional, educational and organisational campaigns, can be included in the PIP. As a result, the Project will not be able to ensure full compliance with the relevant EU Directives and therefore a formal derogation from the Environmental and Social Policy will be sought.

This PSD will be updated after completion of the ESDD and approval of the ESAP.

Technical Cooperation

The following technical co-operation (“TC”) funds are envisaged as part of this project:

  • Feasibility Study (€370,000), financed by the EBRD Shareholder Special Fund.
  • Project Implementation Support. International consultants to assist the Company with engineering design, procurement, preparation and evaluation of tenders, contract award, administration, financial control, project management and reporting (€400,000 ), to be financed by an international donor.
  • Corporate Development, Stakeholder Participation and City Support Programme. To support operational and financial improvements, to secure sustainability of the Company operations, implement a Stakeholder Participation Programme in the City of Khujand, and develop and introduce a Public Service Contract between the Company and the City (€350,000), 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.