Rustavi Solid Waste Management Project

Location:

Georgia

Project number:

40019

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

A

Approval date:

06 May 2009

Status:

Repaying

PSD disclosed:

19 Feb 2009

Project Description

The EBRD is considering to participate in a project to construct a sanitary landfill for the Georgian municipalities Rustavi and Gardabani in compliance with EU standards. This will be complemented by the purchase of vehicles, bins, equipment as well as the establishment of a management company by the city of Rustavi which will receive institution building support.

The Rustavi landfill site will be compliant with EU Directives. The current landfill infrastructure in Georgia does not meet EU standards. The landfill will be located, designed and operated in accordance with EC Directive 1999/3 I/EC. Appropriate measures will be taken in order to:

  • Control water from precipitations entering into the landfill body;
     
  • Prevent surface water and/or groundwater from entering into the landfill waste;
     
  • Collect and recirculate contaminated water and leachate;
     
  • Control the accumulation and migration of landfill gas.

The design will take account of the local geological setting and specifically the sub-surface permeability criteria described in EU Directive 1999/3 I/EC.
The intended project will include the closure of the existing dumpsite in Gardabani.

Transition Impact

The Project will contribute to the transition process by:

Operational Improvement, Commercialisation and a Business Plan: The Bank will assist with the establishment of the company and support the company and the city to improve service quality in Rustavi and Gardabani. The company and the city will need external support and advice to develop the project and establish the operating company into an efficient, financially sustainable service company. The Bank’s experience in the Tashkent Solid Waste Project shows that a commercial approach and operational improvement can be achieved in solid waste management in Early Transition Countries.

Public Service Contract: The Bank will help in developing a Public Service Contract with defined operational targets to bring greater transparency and service quality in solid waste operations in Rustavi.

Improved standards of transparency and governance: Improved standards of transparency and governance: The requirement for international tendering for contracts and independent consultants to review the implementation will increase transparency and expose local staff to new work modes. The project would also improve standards of transparency and governance in other ways such as: requiring an accounting system capable of producing reports to International Financial Reporting Standards; requiring annual financial and health and safety reports to be produced and published; and, increasing public disclosure and accountability for the new company.

The Client

The EBRD loan will be provided to the Republic Georgia and on-lent to the city of Rustavi which will establish the waste management company for the purpose of constructing and operating the regional solid waste landfill for Rustavi and Gardabani.

EBRD Finance

The proposal is for a loan of up to EUR 1.6 million to the Government of Georgia to on-lend to the city of Rustavi for capital investment in the newly created company.

Project Cost

The total capital cost is estimated in the range of EUR 5.46 million. The Bank would lend EUR 1.6 million and a co-financing grant of EUR 4.66 million is being sought from a donor and EUR 0.8 will be a local contribution.

Environmental Impact

Screened A (according to the EBRD’s Environmental and Social Policy 2008).
The project will bring substantial environmental, community and workers health and safety benefits to the city of Rustavi, the town Gardabani and the surrounding communities by providing an adequate and affordable municipal solid waste management, including a new sanitary landfill. A new company to manage the sanitary landfill will be established.

However, the construction and operation of a sanitary landfill according to EU standards may be associated with a number of adverse environmental, social, community and workers health and safety impacts. Therefore, an Environmental and Social Impact Assessment will need to be carried out to identify and assess environmental, social, community and workers health and safety impacts associated with construction and operation of a new sanitary landfill and to determine measure for their mitigation. The new sanitary landfill will need to be constructed and operated according to national and EU standards.

British Petroleum (BP) has been involved in the preparation of a preliminary design for a new municipal solid waste sanitary landfill for Rustavi and Gardabani municipalities and has carried out landfill site selection, an EIA including public information and consultation process according to national, BP and EU requirements. EBRD is currently reviewing the available BP’s documents and if needed additional investigation will be carried out to ensure that the project is prepared according to national, EU and EBRD's Environmental and Social Policy 2008 requirements.

There is an Environmental and Social Impact Assessment available for this project.

Technical Cooperation

Two Technical Co-operation assignments are foreseen for the Project:

Project Implementation and Procurement Support (to be funded by the ETC Fund) International consultants to assist the project implementation unit during the estimated 2 year implementation period. The consultants will support Rustavi municipality in establishment of the Company, provide procurement support, tender evaluation, contract award and administration, financial control, project management, and reporting services.

Corporate Development, Stakeholder Participation and City support Programme to

(i) assist the City to establish the Landfill Management Company (the “Company”). The aim is to assist the City in selection of human resources with relevant/suitable qualifications; prepare a list of equipment needed for proper functioning of the Company and carry out initial trainings of staff on the basics of landfill management and assist the Company to establish corporate, financial and operational efficiency;

(ii) implement a Stakeholder Participation Programme covering Rustavi and Gardabani cities to assist them and the Company to develop, sign and implement the Public Service Agreement and

(iii) assisting Rustavi to implement the Project Agreements; and general assistance in financial planning, budgeting and project reporting.

 

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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