Nizhny Novgorod Water

Location:

Russia

Project number:

42891

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

13 Dec 2011

Status:

Cancelled

PSD disclosed:

21 Sep 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering to co-finance a portion of a long term investment programme of RUB 9 billion (~EUR 225 million) over 2011-2016 for the rehabilitation and upgrade of water and wastewater infrastructure and facilities in Nizhniy Novgorod.

Transition Impact

Transition impact will be delivered through the following:

  • Commercialisation: The project will bring improvements in financial, operational and efficiency performance of the Company which would result in improvement of the quality of water and wastewater services provision to the City residents. Introduction of a Public Service Contract (the “PSC”) will result in institutional strengthening and optimisation of the relations between the City and the Company. The PSC will define the respective rights and obligations of the City and the Company as well as quality of the services to be provided by the Company. The introduction of a PSC will:

    (a) establish standards and a transparent structure for the provision of services; and
    (b) allow the Company to agree with the City on investment plan and financing.
  • Transfer of skills: Involvement of international consultants under the TC assignments will provide the Company with a training-on-the job access to international financial, corporate, managerial, procurement and engineering skills and knowledge transfer.

The Client

OJSC “Nizhegorodsky Vodokanal” (the “Company”), a local utility company providing water and wastewater services in Nizhny Novgorod, the fifth largest city in Russia and capital of Nizhegorodskaya oblast (the “Oblast”). The Company is wholly owned by the City.

EBRD Finance

A senior loan to the Company of up to RUB 5 billion (~EUR 125 million) in two equal tranches of up to RUB 2.5 billion (~EUR 62.5 million). Availability of the second tranche will be based on progress towards achieving specific financial targets.

Project Cost

The total cost of the Company’s investment programme is RUB 9 billion (~EUR 225 million).

Environmental Impact

The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Company’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Company’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. The information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

Project Management Consultants for the project management, procurement, engineering and supervision of works (up to EUR 500,000; donor to be identified).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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