Translated version of this PSD: Arabic
Sovereign loan of up to EUR 69 million to the Government of Egypt to finance the drain infrastructure rehabilitation component of the integrated depollution programme of the Kitchener Drain, the main agricultural drain passing through the governorates of Kafr El Sheikh, Gharbeya and Dakahleya in the Delta region. The proposed loan is expected to finance (i) drain rehabilitation works (dredging of canals, and rehabilitation and construction of new pumping stations), (ii) diversion works of the Omar Bek sub basin and (iii) installation of a monitoring system for water flow and quality (the "Project").
The drain rehabilitation is one of three components forming the integrated depollution programme of the Kitchener Drain. The other two components consist of (i) wastewater expansion and plant rehabilitation project proposed to be financed by the EIB and (ii) municipal solid waste management project, proposed to be financed by the Bank.
The Kitchener Drain is one of the most severely polluted drains in Egypt causing significant environmental, economic and social harm. It extends 69 km and passes through the governorates of Kafr El Sheikh, Gharbeya and Dakahleya and discharges into the Mediterranean Sea. Pollution of the Kitchener Drain emanates from three main sources: (i) domestic wastewater (poorly treated and/or untreated) from numerous villages within the three governorates; (ii) uncontrolled municipal solid waste disposed of along the banks and into the drains; (iii) industrial wastewater discharge and (iv) fertilisers and pesticides discharges from the agricultural drainage system.
The integrated programme will be the first programme in Egypt testing a new cross-sectoral approach that will support the depollution of the Mediterranean Sea and improve the health and environmental situation of the people living in the drain catchment area as well as strengthen the economy by improving the irrigation water quality in the three governorates.
The Project will improve the hydraulic performance and management of the drain, reduce energy consumption and further reduce the pollution in the Damietta Branch of the Nile River. Additionally, the introduction of a monitoring system will help control the level of pollutants in the water, demonstrating the development of new environmental technologies in Egypt.
The Project fully supports the Bank's Green Economy Transition Approach which promotes investments that bring environmental benefits and mitigate the effect of climate change and other forms of environmental degradation. The Project will (i) contribute to the depollution of the Damietta Branch of the Nile through the full diversion of the Omar Bek Drain, (ii) improve the quality of water for irrigation in the Kitchener drainage system and (iii) lead to the prevention of dumping solid waste and polluting the drain. The Project also promotes substantial government improvements and innovative technologies through the development of a pollutant monitoring system, which will enable the enforcement of existing environmental laws and help control the level of pollutants in the water.
Beneficiary: Ministry of Water Resources and Irrigation (MWRI) is responsible for water resources management in Egypt. MWRI is the owner of irrigation infrastructure assets and responsible for water delivery. MWRI will be part of a Steering Committee created to oversee the programme.
Implementing Entities: A Project Implementation Unit (PIU) represented by the Egyptian Public Authority for Drainage Projects (EPADP) and the Mechanical and Electrical Department ('MED')(together 'Implementing Entities') will be created at MWRI to ensure successful implementation of the Project. EPADP is responsible for the financial, technical and administrative aspects of operation and maintenance of drainage systems. EPADP will be responsible for the implementation of the drainage investments. MED is a legal entity under the jurisdiction of MWRI responsible for the O&M of pumping stations. MED will be responsible for the implementation of the rehabilitation of pumping stations.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP) The Project is expected to result in environmental and social ("E&S") benefits including improvements to local environmental and sanitary conditions, contributing to the depollution of the Kitchener Drain, the Nile River and the Mediterranean, and the provision of higher quality water for irrigation purposes. The Project will further contribute to reducing land contamination through irrigation with cleaner drain water. Up to 6 million people in the Project area are expected to benefit from the Project. The implementation of the Project may, however, be associated with various E&S impacts and risks, which will need to be appropriately mitigated and managed.
Independent environmental and social due diligence has included a review of the Project documentation developed to date, including the pre-feasibility study; various site visits; an analysis of the potential impacts and risks associated with the Project; and a review of the capacity of the Client to implement the Project in line with the Bank's E&S requirements.
Key issues considered in the due diligence include health and safety and community risks during Project development; the technical feasibility of the proposed Project components; issues associated with the handling and disposal/reuse of dredged material; and the potential impacts of diverting the Omar Bek drain into the Kitchener Drain.
Community and worker health and safety risks can be adequately addressed through appropriate construction management plans. The implementation of such plans will be overseen through a PIU with consultant support. Controls will be put in place to manage typical construction related impacts associated with temporary land use, traffic, noise, dust and waste management.
The dredging of the Kitchener Drain is expected to generate a large amount of dredged material including silt and municipal solid waste. Current practices included placing dredged materials in and on the banks of the drain. The due diligence has considered various options including the disposal of dredged material. The preferred solution that is currently being considered is the removal, drying, sifting and stabilisation of dredged material and then reusing it rebuild and raise drain banks. Solid waste material would be removed for disposal together with any dredged material which is contaminated. Through reuse in upgrade works, the amount of dredged material going to landfill will be reduced as will the transport requirements and landfill void space demands. Any disposal of such material will be to sanitary landfills designed to EU standards (i.e. the EU Landfill Directive) and volumes to be disposed of will be considered in landfill design under the wider Kitchener Drain Depollution Programme.
The Omar Bek drain currently discharges into the Nile River and Zifta Bahary drain, which flows into the Kitchener Drain. In order to improve the quality of the water in the Nile, and noting the presence of a potable water uptake and treatment station downstream of the Omar Bek/Nile confluence, it is proposed to discharge the Omar Bek drain into the Kitchener Drain only. This will involve blocking the inlet to the Nile, upgrading existing pump station capacity and expanding the existing syphon and culvert near Mahalla City. At Mahalla city the Zifta Bahary drain passes under an existing canal (water supply) via a syphon and then flows through a covered culvert around Mahalla city. To accommodate the extra water flow a second parallel syphon will be required and the culvert will need to be expanded, but within the existing culvert right of way. The culvert right of way and accommodate the expansion and is largely free from development save for a small number (l5) of informal dwellings. The potential for the need to relocate these dwellings, and impact on any informal land use, will be assessed during detailed design. The due diligence has included the development of a resettlement and livelihood restoration framework, which will ensure that any resettlement or impacts to livelihoods will be managed in line with PR5 requirements. The pre-feasibility study has indicated that the Kitchener Drain is able to accommodate the increase in flow as well as other future discharges into the drain. Most of the increased flow is expected to be utilised for irrigation purposes reducing the demand on fresh water and groundwater.
The Project includes upgrades to existing pumping stations, which will result in a reduced energy demand and indirect GHG emissions. Hydraulic flow in the drain will be improved through dredging and the pump upgrades and a flow and water quality monitoring system will be implemented. This will allow better monitoring and control of water availability and monitoring of water quality particularly with respect to its use in irrigation. Awareness raising together with the solid waste management aspect of the Programme is expected to substantially reduce the disposal of solid waste into the drain thus limiting future dredging requirements.
Drain works will be undertaken through contractors with oversight and management provided by the PIU. The due diligence has included the development of an Environmental and Social Action Plan ("ESAP"), which includes a series of actions to structure the Project in line with the Bank's E&S requirements. These include the development of E&S management systems and plans; contractor E&S provisions; further development of the resettlement and livelihood restoration framework; provisions to manage labour and biodiversity risks; health and safety requirements; appropriate consideration of dredged material disposal; and the undertaking of the necessary assessments for permitting purposes. The due diligence has also included the development of a Stakeholder Engagement Plan and a Non-Technical Summary, which will be disclosed, to guide stakeholder engagement and awareness raising on the project and to communicate details about the Project.
TC1: Environmental and social due diligence and technical review to conduct environmental and social due diligence of the Project including a review of the potential impacts associated with the Project and technical solutions for the handling and disposal of dredged material. The estimated cost of the assignment is up to EUR 0.17 million, financed by the Infrastructure Project Preparation Facility ("IPPF").
TC2: Project Implementation Support and development of PIU to be established at the appropriate level to assist with project implementation including review of the technical requirements and the procurement cycle, management and mitigation of environmental and social impacts and risks, as well assistance with compliance to loan requirements (disbursement, covenants and project reporting). The estimated cost of the assignment is up to EUR 2 million, proposed to be financed by the NIF.
TC3: Construction Supervision to provide for oversight on all the construction activities under the component and to carry out the duties of the Engineer as defined in the Contractor's contract. The estimated cost of the assignment is up to EUR 3 million, proposed to be financed by the loan.
TC4: Capacity Building Support to develop and support the implementation of a Drainage Management Action Plan or ("DMAP"). The DMAP will identify the routine, operation and management requirements of the drain, setting out the tasks, task frequencies, competencies and resources necessary to assure the sustainability of the benefits of the investment. This includes defining regular drain inspections, tests, dredging regime etc. within a well-developed, pragmatic planned maintenance schedule. The DMAP will also include the preparation and testing of unplanned and emergency responses to deal with situations within and outside the immediate control of drain operators (such as pumping station power outages, severe pollution incidents etc.). It will also include embedding the collation and analysis of business critical data to inform future capital maintenance programmes and further refine the DMAP. To ensure that the workforce is properly equipped a complementary programme of training, upskilling and/or recruitment shall be also included. The estimated cost of the assignment is up to EUR 0.25 million, proposed to be financed by the NIF.
TC5: Stakeholder Participation Programme to raise awareness on the impact of the Project, as well as ensure sustainability of the Project. Community education and ongoing engagement with local communities will be crucial to minimising drain misuse but also to bestow wider ownership for its daily use. The estimated cost of the total assignment is up to EUR 0.75 million, proposed to be financed by the NIF.
The Project will be co-financed by an investment grant of up to EUR 9.0 million proposed to be financed by the NIF.
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Eng. Mohamed Hassab
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