Nerungri Water Modernisation Project

Location:

Russian Federation

Project number:

43958

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

17 Dec 2013

Status:

Repaying

PSD disclosed:

10 Oct 2013

Project Description

In 2013 the EBRD signed Nerungri Water Modernisation Project, a senior loan of RUB 450 million to Open Joint Stock Company "Nerungri City Vodokanal" (the "Company") a public utility enterprise responsible for the provision of water supply and wastewater services in the city of Nerungri (the "City") with the population of 60,000, in the Republic of Sakha (Yakutia) (the "Republic"). The proceeds of the loan were provided to co-finance company's Priority Investment Programme (the "PIP") aimed at the rehabilitation and modernisation of the municipal water and wastewater infrastructure and necessary energy efficiency improvements.

Project Objectives

The project addressed urgently needed water supply and wastewater treatment systems improvement in the city of Nerungri.

Transition Impact

ETI score: 60

ETI 60

Transition impact is derived from:

  • Introduction of a Regulatory Agreement which will govern the relationship between the company, the city and the republic and specify the rights and responsibilities of each party to improve service levels;
  • Improvement in the tariff methodology to ensure move towards the achievement of full cost recovery and incentives for cost efficiency;
  • Demonstration of successful cost restructuring including reductions in operating and maintenance costs.

Client Information

WATER AND SEWAGE COMPANY OF THECITY OF NERUNGRI

Open Joint Stock Company "Nerungri City Vodokanal", a public utility company, wholly owned by the Municipality of Nerungrinsky Rayon, responsible for the provision of water supply and waste water services in the city of Nerungri in the south of the Republic of Sakha (Yakutia).

EBRD Finance Summary

RUB 76,708,792.00

Total Project Cost

RUB 146,708,800.00

Environmental and Social Summary

Categorised B in accordance with 2008 Environmental and Social Policy. The environmental and social due diligence of the Company and the project was undertaken by independent consultants, consisting of an audit of the company's current management systems and practices, the existing facilities and operations, and an analysis of the impacts and benefits of the proposed priority investment programme (PIP). Due diligence concluded significant environmental and social benefits through the improved water quality and reliability of supply and the improved effluent treatment. In particular the PIP enabled the company to meet applicable EU standards for water quality and effluent discharge.

The company operates in line with the Russian national standards, including national legislation on human resources and labour protection. The Environmental and Social Action Plan (ESAP) was developed to bring the company into full compliance with the EBRD Performance Requirements. This included provisions to bring the environmental and health and safety management systems in line with ISO14001 and OSHAS18001 standards, to improve sludge management, and to introduce protective zones for ground water sources.

The ESAP required the company to ensure  the implementation of the project in accordance with the PRs. The TC-funded implementation support consultant assisted the company and the contractors in this regard. 

Any adverse future environmental and social impacts resulting from the project implementation will be temporary, and limited to the Company's operational and project construction/modernisation sites. Potential adverse impacts will include noise, dust and air pollution from the construction machinery, and generation of construction wastes. The ESAP required the company to ensure that contractors plan and implement the PIP in accordance with the PRs and in a way that minimises disruptions to local people. The TC-funded implementation support consultant assisted the Company and the contractors in this regard. The Company  notified local stakeholders about the project and the timing of works, and had a mechanism for grievances and complaints in place.

Implementation summary

The  components implemented under the revised investment programme helped the company resolve a number of specific tasks associated with technical modernisation for achieving sustainable water supply. The project resulted in: (i) the improvement of management efficiency, (ii) the increase in water supply reliability and safety, (iii) the improvement of drinking water quality, and (iv) the upgrade of the Vodokanal's technical equipment.

From an environmental perspective, the company meets the requirements for drinking water supplied to the population and is reporting annually on its E&S performance. While the company made some progress in implementing relevant measures under the Environmental and Social Action Plan (ESAP), a limited progress was made with regards to the improvement of standards for wastewater treatment due to the significant reduction of the originally approved financing plan. 

The Transition Impact achievements are mainly represented by long-term tariffs, energy savings and the demonstration effect derived from disclosure of information on the company's webpage.

PSD last updated

04 Feb 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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