North Tajik Water Rehabilitation II



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

12 Dec 2012



PSD disclosed:

10 Sep 2012


Translated version of this PSD: Russian

Project Description

The EBRD is considering providing financing for a programme of priority capital investments to improve the municipal water services in the North Tajik cities of Istravshan, Panzhakent, Shakhriston and Zafarobod. The overall objectives of this project are to:

(a) rehabilitate the water supply system and, where applicable, allow selected wastewater improvements;

(b) improve both billing and collection; and

(c) improve financial and operational management.

Transition Impact

The transition impact of this project is expected to include:

  • Application of the new water tariff methodology within affordability limits including support to low income groups;
  • Increased collection rates;
  • Development and signing of public service agreements between the Cities and the respective water supply company;
  • Improvements to the operational and financial management of the participating water supply companies, together with enhanced transparency and corporate governance;
  • Commercialisation and capacity building of the water supply companies; and
  • Implementation of a stakeholder participation programme.

The Client

The client for this project is the State Unitary Enterprise Khojagii Manziliyu-Kommunali (“KMK”), which is the owner of the water supply companies in the four cities.

EBRD Finance

The EBRD will provide a sovereign guaranteed loan to KMK in an amount of USD 7 million. The proceeds of the loan will be on-lent to the respective water supply companies.

Project Cost

USD 16 million including related technical cooperation. The project will be co-financed by an investment grant from an international donor.

Environmental Impact

Categorised B in accordance with EBRD's 2008 Environmental and Social Policy. The project is a multi-site water rehabilitation facility and is expected to improve the quality, reliability and efficiency of water supply systems in the Cities of Istravshan, Panzhakent, Shakhriston and Zafarobod, thus providing uninterrupted access to safe drinking water and improving public health.

The environmental and social due diligence is on-going and will include an environmental, health and safety and social audit to assess the respective water companies’ current environmental and social management systems and their past and current performance against EBRD's Performance Requirements (PRs); an environmental and social analysis of any potential environmental and social impacts and benefits of the priority investment programme (PIP), and an assessment of climate change impacts. An Environmental and Social Action Plan will be prepared for the water companies to address any environmental and social issues identified during the due diligence to achieve and maintain compliance with the Bank's PRs within a reasonable time-frame. A Stakeholder Engagement Plan will need to be developed for the water supply companies; including a grievance mechanism and information on environmental and social performance and a summary of the agreed Action Plan will need to be released to stakeholders. This PSD will be updated when the results of due diligence are known.

Technical Cooperation

The following technical co-operation (“TC”) assignments are envisaged as part of this project:

Project Implementation Support
International consultants to assist the project implementation group within KMK and the water companies with engineering design, procurement, preparation and evaluation of tenders, contract award administration, financial control, project management and reporting. (USD 1 million to be financed by an international donor, the Shareholder Special Fund or the ETC Fund).

Corporate Development Programme
International consultants to support operational and financial improvements to ensure the sustainability of the individual water supply companies. The TC would also include regulatory support as required, based on achievements of TCs for the South Tajik project (Project ID 37656), North Tajik project (Project ID 40717) and Central Tajik Project (Project ID 41642), which are under implementation. (USD 0.6 million to be financed by an international donor, the Shareholder Special Fund or the ETC Fund).

Stakeholder Participation Programme
International consultants to implement a Stakeholder Participation Programme in the participating cities. (USD 300,000 to be financed by an international donor, the Shareholder Special Fund or the ETC Fund). For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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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