Nurek Solid Waste sub-project

Location:

Tajikistan

Project number:

46409

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

17 Dec 2014

Status:

Repaying

PSD disclosed:

25 Sep 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering financing a programme of priority capital investments to improve the solid waste management services in Nurek city, Tajikistan.

Proceeds from this transaction will (i) improve landfill sanitary and operating standards and (ii) increase efficiency/coverage of solid waste collection and transportation in the city.

The Bank will closely monitor the success of the project. It is proposed that the following indicators will be monitored before and after the project implementation:

  • Population with improved solid waste management services, measured by the number of households with improved solid waste management services multiplied by the average household size.
  • Implementation of the financial and operational targets through technical assistance.
  • Covenanted collection rates achieved.

Transition Impact

The proposed sovereign guaranteed loan to a solid waste company of Nurek aims at the following:

(i) Consolidation of solid waste activities under one company;
(ii) The signing of a Public Service Contract;
(iii) Tariff reform (i.e., adoption of cost recovery principle, tariff increases to operational cost recovery, etc.); and
(iv) Capacity building for the company (e.g., preparation of a Corporate Development Programme).

The Client

Newly created, municipality-owned solid waste company in the city of Nurek.

EBRD Finance

The EBRD will provide a sovereign guaranteed loan of up to USD 2 million to the client.

The project will be co-financed by an investment grant from an international donor.

Project Cost

Up to USD 5.3 million including investment and technical cooperation grants.

Environmental Impact

The project has been categorised B in accordance with the Bank's 2008 Environmental and Social Policy, following an Initial Environmental and Social Examination (IESE). The IESE was carried out through the review of the results of the site visit and review of existing documents by independent consultants, which confirmed that the potential adverse impacts from the proposed development in the proposed location would be localised and be readily addressed through careful design, the implementation of mitigation measures and appropriate management practices. 
 
The project involves the construction of a new EU-compliant landfill and allow for the closure of the existing dump site. The project will bring substantial environmental, health and safety benefits to Nurek City through the rehabilitation of waste collection, transportation, and disposal services; increased operational efficiency, and environmental and hygiene standards. The project will result in subsequent closure of the official dumpsite which will bring significant benefits for not only public and worker health and safety but also the environment. However, due to the limitations to the budget of the PIP, the waste management system to be introduced will not ensure full compliance with the relevant EU Directives (in particular, European Waste Framework Directive's requirements on waste recycling and recovery) and EBRD Performance Requirements. Therefore, on account of constraints arising from affordability and limited financial resources, derogation from the EBRD’s Environmental and Social Policy is sought.
 
The environmental and social due diligence (ESDD) carried out by independent consultants covered a review of the environmental and social management practices and existing facilities and operations of the solid waste management company; and an Environmental and Social Analysis.
 
The ESDD showed that the Company has some procedures and records in place, but no formal Environmental, Social or Health and Safety Management Systems.  The company is adequately staffed to deliver and manage the Project. The staff has identified roles and responsibilities and they are aware of Health, Safety and Environmental matters. However, further training and capacity building is required to ensure that waste management activities of the company will meet the national legislative requirements and the EBRD PRs.
 
Land required for the location of the new landfill is state owned and no land acquisition is required. Access to land adjacent to the site is to be provided via a new route to the north of the landfill, mitigating the project impact on the herders who use this publicly-owned land for cattle grazing and accessing surrounding alternative pasture land.
 
A public consultation meeting was held in October 2014 to discuss the scope of environmental and social analysis, project alternatives, potential E&S impacts and further planned stakeholder engagement activities at an early stage of the project planning. A Stakeholder Engagement Plan is developed for the project and will be finalised after the consultations. A national EIA is required for the project and will include an additional consultation meeting/hearing with the local population in accordance with national requirements of Tajikistan.
 
The Environmental and Social Action Plan (ESAP) agreed with the Client includes the following main requirements:
  • Appoint a qualified Environmental & Social Manager  and a Health and Safety Manager;
  • Develop and implement an integrated environmental, social, health and safety management systems in line with the requirements of ISO 14001 and OHSAS 18001;
  • Prepare and implement a specific Human Resource Policy;
  • Develop a methodological approach for managing design changes;
  • Prepare appropriate environmental and social assessments for the Project to meet the requirements of Tajik Legislation and to verify and confirm the conclusions of the ESA and obtain approvals prior to start of construction;
  • Include the Environmental, Social and Health & Safety requirements as described in the ESA, ESAP, ESMMP, and SEP as contractual requirements for all appointed contractors and sub-contractors;
  • Implement the Stakeholder Engagement Plan including a grievance mechanism;
  • Develop a Chance Finds Procedure, to be implemented in the event that archaeological assets are identified during works;
  • Deelop and implement training/public awareness programme before the landfill becomes operational.
 
The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP and resettlement action plan. The Bank will conduct monitoring visits, as required, and commission a completion audit.
 

Technical Cooperation

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

Feasibility Study
USD 385,000 (EUR 280,000), feasibility study financed by the Early Transition Countries Fund will, inter alia: (a) prepare a plan and cost estimates for improving waste collection and the disposal capacity of the landfill, (b) assess the options for landfill facility upgrade, (c) review operations and recommend improvements, and, (d) prepare a strategic and operational business plan for the Company.

Project Implementation Support
International consultants will assist the project implementation group with engineering design, procurement, contract administration, engineer’s supervision, financial control, project management and reporting. USD 500,000 (EUR 362,000), proposed to be financed by an international donor.

Corporate Development, Stakeholder Participation and City Support Programme
International consultants will support operational and financial improvements to secure the sustainability of the Company operations, implement a Stakeholder Participation Programme, and introduce a Public Service Contract between the Company and the City. USD 440,000 (EUR 318,000) proposed to be financed by an international donor.

 

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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