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.
The project addressed urgently needed water supply and wastewater treatment systems improvement in the city of Nerungri.
ETI score: 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.
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
Total Project Cost
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.
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
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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