Khujand Wastewater Project

Location:

Tajikistan

Project number:

44753

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

03 Sep 2014

Status:

Repaying

PSD disclosed:

01 Apr 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering a sovereign guaranteed loan of USD 2.5 m to Khujand Water Company, to be co-financed by a capital grant from Swiss SECO in the amount of USD 5.0 m.

The proceeds of the loan and grant will be used for the rehabilitation of an existing wastewater treatment plant as well as improvements to the system for collection of wastewater in Khujand. The Project significantly reduces the discharge of untreated wastewater to the Syr-Darya River.

Transition Impact

The project has the following transition impact objectives:

  • The project would be the first environmental project addressing wastewater quality and connectivity among the Central Asian ETC countries. In addition to financial and operational sustainability, the project will further serve as a model project among Central Asian ETC countries by achieving environmental sustainability.
  • Appropriate increases in wastewater tariffs to achieve cost recovery for wastewater given the new investments in wastewater treatment and collection.
    Based on universal metering implemented during previous project, the Company will now be able to operate a metered billing and collection system. This would improve transparency in the billing process.

The Client

Khujand Water Company, a municipal company wholly owned by Khujand City.

EBRD Finance

A USD 2.5 million loan to Khujand Water Company under a sovereign guarantee from the Republic of Tajikistan.

The loan will be co-financed by a USD 5.0 million capex grant from the Swiss State Secretariat for Economic Affairs (SECO).

Project Cost

USD 8.3 million including related technical assistance.

Environmental Impact

The project has been categorised B. The implementation of the project is expected to significantly improve the efficiency, reliability and quality of wastewater services in Khujand, thus contributing to a reduction of the pollution of the Syr-Darya River and improvement of public health by addressing the risks arising from poor sanitation and untreated wastewater discharges. The potential adverse future environmental and/or social impacts of the rehabilitation of existing water supply and wastewater collection and treatment systems can be readily identified and addressed through adequate mitigation measures. No significant capacity increase of the existing wastewater treatment plant is anticipated.

The environmental and social due diligence (ESDD) for the project will include a review of the due diligence documents and reports for Phase I and Phase II, an Environmental and Social Audit/Review of the Company’s current Environmental, Health and Safety, and Social (EHSS) management practices, operations and facilities, and an analysis of potential environmental and social issues associated with the proposed investment programme by independent consultants.
Upon completion of the due diligence an Environmental and Social Action Plan (ESAP) will be prepared and agreed with the Client.

The PSD will be amended to summarise the outcomes once the ESDD is completed.

Technical Cooperation

Pre Loan Signing

  • TC 1: Technical, Financial and Environmental and Social Due Diligence to review the proposed investments and validate the work already done in the framework of the Master Plan. It will include a water quality study of current and potential future water sources and will complement the findings of a Master plan for water and wastewater in Khujand, which was commissioned by the Bank in 2010 but due to its wide scope did not provide the necessary level of detail for project preparation. The cost of the assignment is EUR 135,000 (USD 186,000), financed by the EBRD Water Fund.
  • TC 2: A special financial audit focusing on operations costs, to assess the Company’s capacity to take on additional debt and investigate recent increases in expenditures. The cost of the assignment is EUR 30,000 (USD 41,000), financed by the Bank’s own resources.

Post Loan Signing

  • TC 3: Project Implementation Support to assist the project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting. This assignment will also include a component to help the Company further develop its billing system. Furthermore, support for the Company to implement the Public Service Contract previously developed will also be included in this TC. The estimated cost of the assignment is EUR 400,000 (USD 552,000), proposed 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

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Text of the PIP

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