Manas airport rehabilitation

Location:

Kyrgyz Republic

Project number:

48677

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

04 May 2017

Status:

Cancelled

PSD disclosed:

10 Nov 2016

Transdlated version of this PSD: Russian

Project Description

A non-sovereign loan of up to EUR 4.2 million to JSC "Manas International Airport" ("Manas"), majority owned by the Government of Kyrgyzstan. Proceeds of the loan will be used to finance part of the rehabilitation programme of Bishkek Airport's infrastructure, namely the installation of a new
ventilation/heating system, which will meet international standards.

Project Objectives

Address the growing demand for quality airport services in the Kyrgyz Republic, and include the installation of a ventilation/heating system which complies with international best practice and energy efficiency standards.

Transition Impact

Good.

Transition impact is expected to be derived from the following:

Setting standards for corporate governance and business conduct: The Project will support the implementation of energy efficiency solutions and technologies by a state owned airports operator in a country which is characterised by a relatively high level of energy intensity and low level of
penetration of energy efficiency technologies. Cooperation on energy efficiency with a major transport player visible on a country level will have a significant demonstration effect and help setting standards for energy and resource efficiency in the Kyrgyz conatruction sector and beyond. The
focus on energy efficiency technology transfer and green projects in the infrastructure sector is fully in line with the Bank's Green Economy Transition Approach.

Demonstration effects - Commercialisation and efficiency improvements of operations (including energy efficiency) and financial management:
The Company has room for improvement in terms of financial management, operations, procurement, safety management and resource management practices. The Bank will provide TC support to enhance the Company's financial and procurement capacity of the Company, including cost management and accounting separation practices, which will facilitate its commercialisation.

The Project is expected to have a strong demonstration effect across the region for the improved operational and financial performance, as well as energy efficiency for a state owned airport.

Client Information

MANAS INTERNATIONAL AIRPORT

JSC "Manas International Airport"

EBRD Finance Summary

USD 4,700,000.00

Total Project Cost

USD 10,700,000.00

The Project will be co-financed by a loan of USD 5.5 MM (EUR 5.0 MM) from the Russian-Kyrgyz Development Fund ("RKDF") and, subject to availability of donor resources, by a capital grant of USD 0.5 MM (EUR 0.45 MM).

Environmental and Social Summary

Categorised B (2014). An Environmental and social due diligence (ESDD) has been undertaken by the Bank’s environmental and social specialists based on a review of the Company’s corporate management systems and relevant information provided by the Client. The ESDD confirmed that the project will have limited environmental and social impacts which will be mitigated by a number of measures established in the Environmental and Social Action Plan.

The investigations identified that potential future adverse impacts associated with the upgrade of the heating and ventilation systems of Manas International Airport in Bishkek are related only to the construction activities and include potential impacts related to noise, vibration, waste management and occupational health and safety. All of these impacts are expected to be site specific, limited to construction phase only and addressed through appropriate mitigation measures. The ESDD also included a review of the Company’s EHSS management systems and an analysis of the potential risks and impacts associated with the investment programme, and confirmed that the Company has adequate corporate systems in place to manage their environmental, health and safety (EHS) issues and that the overall investment programme is limited to the urban area within the boundaries of the existing airport and no sensitive ecological receptors or protected zones will be affected. It was confirmed that the project will not have any significant adverse social impacts to local communities or other project affected parties, nor will the project require the acquisition of lands or result in involuntary resettlement or economic displacement.

An Environmental and Social Action Plan (ESAP) has been developed for the Company to address some areas of improvements in the Company's E&S and HR management systems, occupational health and safety standards, as well as improvements in managing construction activities and contractors to avoid, minimise and mitigate the potential adverse E&S impacts of the project.

The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.

Technical Cooperation

The following Technical Co-operation assignments are envisaged as part of this project:

  • Market Due Diligence - EUR 74,860. Funding provided by the EBRD Shareholder Special Fund;
  • Energy Efficiency Audit - EUR 36,600. Funding provided by the EBRD Shareholder Special Fund.

Company Contact Information

Janyl Abikova
abikova.j@mail.ru
+996 312 898 749
www.airport.kg
Airport "Manas", 720062 Bishkek, Kyrgyz Republic

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