Romania Iasi County Solid Waste Management

Location:

Romania

Project number:

44912

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

08 Apr 2015

Status:

Disbursing

PSD disclosed:

05 Jun 2014

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a loan of EUR 7.5 million (or RON equivalent) to the County of Iasi (“County”) to co-finance the County’s EUR 46.8 million integrated waste management system's improvement programme alongside the Cohesion Fund Environment Sector Operating Programme (“SOP”).
 
The Project will enable the development of the waste infrastructure in the County in accordance with EU standards by enhancing the quality of waste collection and management services, enhancing waste recycling systems and setting up new waste sorting facilities and additional waste warehouse structures. The Bank’s loan will also fund closing landfills that are non-compliant with relevant EU directives.

Transition Impact

The Project involves establishment of one of the first modern integrated waste management system and it is expected to provide a structure that facilitates cost recovery in the collection and disposal of waste. It will establish a model structure that can be replicated by other regional authorities wishing to establish such facilities.
 
Private sector participation will be implemented through the County tendering for private sector operators for both solid waste collection and the landfill. The Bank will assist the County in consolidating solid waste services under one solid waste operator and tendering for private sector contractors for collections and operations of landfill.
 
The Bank will undertake a review of the conditions of private sector engagement to get lessons to improve the quality of service contracts and tendering procedures and will work with the County on introduction of a performance based service contract with the newly created regional operator.
 
The expected transition impact rating is ‘good’.

The Client

The County, which is the third largest in Romania, is located in the north-east of the country and has a population of ca. 720,000 inhabitants.

EBRD Finance

A senior loan of EUR 7.5 Million to the County.

Project Cost

The total cost of the project is estimated at EUR 46.8 million.

Environmental Impact

Categorised B, following an Initial Environmental and Social Examination (IESE). The potential adverse future environmental and social impacts associated with the project are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures.
 
The project is structured to comply with the relevant EU directives on waste management, namely Waste Framework Directive, Landfill Directive, and Industrial Emission Directive (IED). The Project will enhance the quality of waste collection and management services provided to the County population (ca 720,000) and bring the operations of the Company into compliance with the EU standards. The project will realise the closure of four non-compliant landfills (Pascani, Harlau, Targu Frumos and Tomesti) with the introduction of controls designed to manage leachate and landfill gas generation, capture and treatment. The project will also enable separate collection of recyclable and household waste in urban and rural areas and implementation of home composting in 25% of the households in rural area.
 
The environmental and social due diligence (ESDD) has been carried out by independent consultants and covered a review of the corporate environmental and social management practices, existing facilities and operations of the Waste Management Company; and a Gap Analysis.
 
As part of the ESDD a high level Best Available Techniques (BAT) review has been undertaken and which demonstrates that the project is largely aligned to meet compliance with BAT. As the detailed designs were not complete, detailed BAT reviews are required under the Environmental and Social Action Plan (ESAP) for the Tutora site that includes a review of the MBT process prior to completion of design and purchase of process equipment, evaluation of the reuse and recycling opportunities (reject concentrate from treated wastewater, treated water and MBT residues) and the gas collection arrangements including the economics for energy recovery.
 
The ESDD has confirmed that there are no significant adverse impacts associated with the project provided there is adequate management of the facilities and operations. Potential impacts can be mitigated through good construction and operation practices. Still, there are a number of areas where further improvements and actions are needed to ensure compliance with the EBRD Performance Requirements (PRs), including mainly ESH management systems, contractor management and monitoring, implementation of the required health and safety arrangements, pest control measures at Tutora Landfill, security arrangements around existing dumpsites, and dust control during waste transport.
 
ESDD has confirmed that no land acquisition, physical or economic displacement is required. However, informal pickers were observed at the Pascani landfill that is no longer in use. The picking on the landfill is a temporary supplementary activity for the duration of waste being excavated and ‘valuable’ fractions surfacing from the bottom layers. The site will shortly be closed and secured with a fence. Securing the site is important from the basic safety point of view.
 
There have been localised elevated levels of metals detected at Tomesti landfill, although a remedial action plan is planned to address this in the future. The designs have not been completed to address landfill stability at Targu Frumos and Harlau landfills where it was observed that there is subsidence. At the Tomesti landfill, it is required in the ESAP that the existing permanent and temporary dams are evaluated for their integrity and levels of contaminants in nearby water bodies should be assessed. 
 
Stakeholder Engagement Plan (SEP) has been developed for the project, which will allow the Company the opportunity to develop a more structured approach to information disclosure and public consultation. In addition, a mechanism for handling public complaints and grievances, should they arise, has been developed.
An ESAP has been developed for mitigation of identified E&S issues and impacts during preparation, construction and operation of the project including the following main areas: development of  formal human resources policies; revision of the organisational structure for environmental, health and safety (EHS) management responsibilities; development and implementation of an environmental, health and safety management system in line with international standards; inclusion of EHS considerations in tendering process; improvement of contractor management and monitoring; obtaining all required permits; soil and groundwater monitoring; integrity of the dams and monitoring for potential contaminants in the nearby water courses (Tomesti); conducting a BAT review with regards to the MBT process to ensure conformity with BAT as described in the original environmental permit application; conducting a BAT review of disposal of the leachate reject concentrate; implementation of dust control measures during waste transport; exploring the feasibility of using the residue from the MBT process for other uses higher up the waste hierarchy than landfilling (Tutora); finalisation of the design for both Targu Frumas and Harlau landfills for stability; assessment of emissions from the incinerator stack and improvements to signage of the incinerator for hot surfaces (Harlau); review of landfill gas arrangements to ensure compliance with BAT to include an assessment to determine when the economics are favourable for energy recovery (Tutora landfill); improvement of  security arrangements to ensure that there is no access for informal pickers or for further tipping to take place at the closed landfills (Tutora, Harlau, Pascani, Targu Frumos and Tomesti); implementation of  pest control measures (Tutora); review of health and safety arrangements at all operational sites; implementation of fire prevention and response measures in the storage area of the composting, the sorting facility and also the new sorting and MBT facility (Tutora); and, undertaking a site specific bioaerosols risk assessments and for the high risk sites identified, a one-off bioaerosol monitoring test.
 
The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the ESAP and SEP. The Bank will conduct monitoring visits, as required, and commission a completion audit.

Technical Cooperation


The TC proposed assignments are non-reimbursable and will include:
  • Financial Due Diligence. EUR 12,000, financed by the Bank’s own resources.
     
  • Analysis of the environmental and social impacts, issues and risks and a gap analysis. EUR 35,000, financed by the Bank’s own resources.
     
  • Technical and institutional due diligence. EUR 18,850, financed by the Bank’s own resources.
Institutional and strategy support to the County during the required reforms of the solid waste system, including during the implementation of performance-based management of the regional integrated waste management system. EUR 200,000, proposed to be funded by an international donor or the EBRD Shareholder Special Fund (“SSF”).
 

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