Tajik Water II - Khorog GBAO Water Rehabilitation

Location:

Tajikistan

Project number:

46935

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

10 Dec 2014

Status:

Signed

PSD disclosed:

25 Sep 2014

Translated version of this PSD: Russian

Project Description

The Tajik Water II Project (the Project) would be an additional project under the Integrated Approach and provide additional financing to continue important water supply and wastewater improvements in the 20 cities where the Bank already works through KMK.

As part of the Project Long Term Investment Programmes (LTIP), PIPs have been developed for the five sub-projects under the Integrated Approach.

The EBRD is considering supporting the Khorog Water Sub-Project. The EBRD would extend a loan of up to USD 2 million to the Khorog Water Company and Khojagii Manziliyu-Kommunali (KMK), the owner of the Khorog Water Company, on a joint and several basis. The Republic of Tajikistan would provide a sovereign guarantee. The EBRD will also seek an investment grant of USD 2 million from an international donor to facilitate implementation of the sub-project.

Building on the achievements under the Tajik Water Rehabilitation Project, the overall objectives of this project are to: (a) further rehabilitate the water supply and make selected wastewater improvements; and (b) further improve financial and operational management of the Khorog Water Company.

Transition Impact

Transition Impact of the project would be:

  • The proposed new project will help establish regional water companies;
  • Establishment of a contractual arrangement between the city and the company;
  • Capacity building of the company, including the iimprovements of operational and financial management of the Khorog Water Company, preparation and publication of IFRS and a business plan, training on procurement, etc.
  • Establishment of high corporate governance standards and introduction of a formal consultation process with water users in form of a community based stakeholder participation programme.
  • The development of a nationwide (and corporate) strategy on rural water.

The Client

Khojagii Manziliyu-Kommunali (KMK) and Khorog Water Company (subsidiary of KMK) as joint and several co-borrowers.

EBRD Finance

Loan of up to USD 2.0 million under the sovereign guarantee to Khojagii Manziliyu-Kommunali (KMK) and Khorog Water Company (subsidiary of KMK), on a joint and several basis.

Project Cost

The total project cost is USD 4.94 million including technical cooperation. The project will be co-financed by an investment grant from an international donor.

Environmental Impact

Categorised B. Implementation of the next priority components of the LTIP to further improve municipal water and wastewater services in the 20 cities, where the Bank already has water rehabilitation projects under the Integrated Approach, is expected to result in environmental and community health benefits associated with the improved efficiency, reliability and quality of water and wastewater services. Any adverse future environmental and social impacts associated with the proposed project are expected to be site-specific and readily addressed through adequate mitigation measures.

The environmental and social due diligence (ESDD) for the existing projects under the Integrated Approach showed that the water utilities in the 20 cities had weak environmental, health and safety, and social (EHSS) management capabilities and underdeveloped EHSS management systems.

The ESDD for the proposed project will include a review of the progress made with respect to the implementation of the existing environmental and social action plans for the utilities, and an environmental and social analysis of the LTIP components to be financed under the proposed project.

The existing five projects under the Integrated Approach showed that extensive additional investments are needed to bring the water networks and treatment facilities in the 20 cities into full compliance with EU standards. Therefore, on account of constraints arising from affordability and limited financial resources, derogation from the EBRD's Environmental and Social Policy were required for these projects. While it is likely that derogation would also need to be sought on the same basis for the proposed sub-project, it is important to benchmark the water utilities’ performance against relevant EU standards and assess further investments required to achieve full EU compliance. It should be noted that the human health implications of the shortfalls from EU standards are assessed to be minor compared to the benefits of the proposed project to deliver safer and more reliable water supply to the local population.
This PSD will be updated once the ESDD is completed.

Technical Cooperation

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

  • Project Implementation Support. International consultants to assist the project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, sub-project management and reporting. (USD 500,000 to be financed by an international donor, the Shareholders Special Fund or the ETC Fund).
  • Corporate Development and Stakeholder Participation Programme: (i) support institutional development in the form of operational improvements and financial improvements to secure sustainability of the water company; and (ii) implement a Stakeholder Participation Programme. (USD 440,000 to be financed by an international donor or the Shareholder Special Fund).
 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.