Translated version of this PSD: Arabic
Sovereign loan of up to EUR 79 million to the Government of Egypt to finance the Municipal Solid Waste Management ("MSWM") component of the integrated depollution programme for the Kitchener Drain, the main agricultural drain passing through three governorates in the Delta region.
The proposed EBRD loan will finance the (i) purchase of equipment for primary waste collection (containers and tractors); (ii) rehabilitation and construction of up to 10 transfer stations; (iii) rehabilitation and construction of up to 6 waste treatment facilities; (iv) rehabilitation and construction of up to 5 sanitary landfills; and (v) closure and rehabilitation and existing open dumpsites which will be used for the new solid waste management facilities (the "Project").
The MSWM investment component is one of three components forming the integrated depollution programme of the Kitchener Drain. The other two components consist of (i) a wastewater expansion and plant rehabilitation project proposed to be financed by the EIB; and (ii) a drain infrastructure rehabilitation 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 ("KES"), Gharbeya ("GHB") and Dakahleya ("DKH") 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 significantly improve the management of municipal solid waste (which includes collection, transportation, sorting, recycling and final disposal of waste) generated in the three targeted governorates, whose uncontrolled disposal represents a significant source of pollution in the Kitchener Drain which in turn has negative health implications on the population in the area. Accordingly, the Project will provide access to improved waste services to over 5 million people in the 11 districts of the three governorates pertaining to the catchment area in addition to rehabilitate and close the existing waste accumulations on the numerous open dump sites.
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 significantly contribute to improving municipal solid waste management in the governorates thus reducing the current environmental pollution caused by uncontrolled disposal of waste in open dumpsite and in the Kitchener drainage system; the new sanitary landfills will comply with EU standards thus enhancing the current environmental standards applied for sanitary landfilling; the waste treatment facilities will include a waste sorting facility which will enable to contribute to recycling waste. The landfills are expected to be equipped with methane capture systems which will enable a reduction in Greenhouse Gas ("GHG") emissions to atmosphere.
Implementing Ministry: Ministry of Local Development ("MoLD")
The MoLD is the implementing ministry responsible for the improvement of SWM, including (i) assisting governorates in developing SWM facilities, (ii) supervising grants and loans provided to governorates and (iii) monitoring implementation of new investment projects.
Beneficiaries: Governorates, through their solid waste units
The governorates of KES, GHB and DKH are the competent authorities for MSWM services in their geographical territories. They may choose to provide MSWM services directly (i.e. through Local Administration Units) or by contracting NGOs or to a lesser extent private companies. The EU and KfW funded National Solid Waste Management Programme has helped to build capacity in the KES and GHB governorates through the recent establishment of SWM units, however DKH still does not have an assigned dedicated department.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The Project is expected to result in significant environmental and social ("E&S") benefits through the implementation of a modern municipal solid waste management system, the elimination of informal dumping practices and the closure and rehabilitation of existing, sub-standard solid waste facilities. Up to 6 million people in the Project area are expected to benefit from the Project. The establishment of various infrastructures, and the operation thereof, may, however, result in E&S impacts, which will need to be appropriately mitigated and managed. Impacts associated with most Project components, such as the development of waste transfer and treatment stations, are expected to be limited with the implementation of appropriate mitigation measures and are categorised as B. Other components, such as the development of large sanitary landfills, may be associated with significant environmental and social impacts and may potentially be categorised as A requiring comprehensive Environmental and Social Impact Assessments ("ESIA"). The exact location and design of such landfills is not finalised and therefore it is not possible to conduct ESIAs for such landfills. Once adequately defined, the Project will be required, following agreement with the EBRD, to undertake the necessary ESIAs, and disclosure thereof, to inform such developments. The overall Project has been categorised as B, noting, however, the potential for future category A components. The potential impacts of new landfills have already been considered to the extent possible during the due diligence and the necessary measures identified to address such impacts.
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 and operation; waste site closure risks; E&S risks associated with the development and operation of landfills; and potential livelihood impacts associated with waste pickers.
The technical review has determined that the proposed Project is robust and includes the necessary elements of a municipal solid waste management system. The Project aims to ensure adequate waste collection, transfer and treatment facilities to accommodate projected waste generation. The Project will make full use of existing waste and dump sites to the extent possible and early works will include the rehabilitation of such sites. The Project expects up to five new sanitary landfills. These landfills will be designed to meet EU standards (ie the EU Landfill Directive). At this stage it is expected that one existing sanitary landfill will be expanded as part of the Project while existing dumpsites are expected to be converted into waste treatment facilities and landfills. This will be confirmed through the design phase and depending on land availability and potential sensitivities. Waste treatment facilities will allow for the separation of recyclable and compostable fractions to reduce the amount of waste to landfill (20 per cent). While the Project will be designed in line with EU standards, full compliance with aspects of the Waste Framework Directive, such as the requirement for a high degree of waste segregation, reuse and recycling, may not be possible due to financial and local capacity limitations and therefore derogation from the Bank's E&S Policy will need to be sought. Furthermore, it may not be possible to fully ensure that hazardous and medical wastes are not disposed of to landfills.
Community and worker health and safety risks can be adequately addressed through appropriate construction and operational management plans. The implementation of such plans will be overseen through a PIU and consultants during the construction phase and early operation. Waste facilities are expected to be operated by third party waste contractors. Controls will be put in place to manage typical waste facility impacts such as temporary land use, traffic, noise, dust, odour, birds and vermin, health and safety and access control.
Existing dumpsites will be closed or converted into waste treatment facilities. These dumpsites are widespread in the region and contain a variety of waste. During the closure process some of this waste may need to be removed but in general the proposal is to compact and cap dumpsites to reduce infiltration and either reuse the sites or rehabilitate them. These dumpsites present an on-going risk of groundwater (which varies in depth across the region) contamination and therefore monitoring systems will be included to monitor such risk. In general, groundwater use is limited as most water is sourced from canals and drains but in areas groundwater and surface water intersect thus presenting a cross contamination risk.
Like with dumpsites, landfills present a risk to groundwater and to surrounding land uses. All landfills will be designed as engineered sanitary landfills to EU standards including lined cells, leachate collection and treatment, gas collection, access control and a capping process. The due diligence has conducted an initial groundwater risk assessment for landfill development and while groundwater is not routinely used, the due diligence has defined measures such as adequate landfill lining and a groundwater monitoring networks to minimise such risks. Groundwater risks will be considered during landfill location selection and design.
Waste pickers have been identified at some transfer stations and dumpsites. The due diligence has included the development of a livelihood restoration framework, further development and implementation of which will allow the Project to manage potential livelihood risks. Mitigation measures include the inclusion of waste pickers in the Project through employment will be explored further during project development to ensure these potential impacts are addressed in line with PR5.
The Project is expected to reduce GHG gas emissions (approx. 160kt CO2e/year) compared to current waste practices by prevention of uncontrolled burning of waste, capturing and burning of landfill gas, increased efficiencies in waste collection and processing, reduced organic waste to landfill and enhanced recycling.
The Project will be implemented through a Project Implementation Unit with the support of a Consultant. Actual development works and operations will be undertaken by contractors and waste companies. 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 livelihood restoration framework; provisions to manage labour and biodiversity risks; health and safety requirements; groundwater risk management; and the undertaking of the necessary assessments, including ESIAs, for permitting purposes and in line with EBRD requirements. 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.
The Project is expected to benefit from the following Technical Co-operation assignments.
TC1: Environmental and social due diligence and technical review to conduct environmental and social due diligence of the Project .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 MoLD 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, contract management/supervision and administration, as well assistance with compliance to loan requirements (disbursement, covenants and project reporting). The estimated cost of the assignment is up to EUR 3.15 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 2 million, proposed to be financed by the loan.
TC4: Capacity building at local level with establishment of a SWM unit at DKH Governorate: Establishment of a SWM unit at the Dakahleya Governorate in a similar fashion with the units created in the Kafr El Sheikh and Gharbeya governorates through the NSWMP. This assignment will focus on their human resources competencies, organisational development, in planning and supervising/monitoring collection performance, monitor and evaluation plan on the contracts (clear evaluation criteria), enforcement and effective environmental monitoring of the waste management facilities. The estimated cost of the assignment is up to EUR 1 million, proposed to be financed by the NIF.
TC5: Stakeholder Participation Programme: Development of an effective public awareness campaigns at local level targeting the individual households and focusing on issues relating to the provided waste collection infrastructure (e.g., location of bins and collection schedules), public health issues associated with inappropriate waste disposal and how individual best practice waste management at household level can improve living, health and environmental standards. The estimated cost of the total assignment is up to EUR 0.85 million, proposed to be financed by the NIF.
The Project will be co-financed by an investment grant of up to EUR 3.0 million expected to be financed by the NIF.
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Dr. Mohamed Hegazy
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