Talas Water and Wastewater Rehabilitation

Location:

Kyrgyz Republic

Project number:

43256

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

01 Feb 2013

Status:

Repaying

PSD disclosed:

22 Oct 2012

Translated version of this PSD: Russian

Project Description

The EBRD is considering supporting the Talas Water and Wastewater Sub-Project. The EBRD would extend a sovereign loan of up to €2 million to the Kyrgyz Republic, to be on-lent to Talas City for the benefit of the Talas Water Company for improvement of water supply and wastewater services.

The EBRD will also seek an investment grant from an international donor of €3 million to facilitate implementation of the project which will address urgently needed water and wastewater infrastructure rehabilitation needs.

This support will be extended under the existing EBRD sovereign framework of up to €20 million, established by the Bank to co-finance with international donors priority water and wastewater rehabilitation sub-projects across the Kyrgyz Republic. The framework envisages sovereign loans that would be on-lent to the cities for the benefit of the water companies involved and would address urgently needed water and wastewater infrastructure rehabilitation needs.

The overall objectives of this sub-project are to:

(a) rehabilitate the water supply and wastewater system; and
(b) improve financial and operational management.

Transition Impact

Transition Impact of the sub-project would be:

  • Access to basic public utilities;
  • Introduction of tariff reform within affordability limits;
  • Increased collection rates;
  • Establishment of a contractual arrangement between the city and the company;
  • Improvement of operational and financial management of the Talas Water company (including a community based shareholder participation programme, preparation and publication of IFRS and business plan, training on procurement, etc).

The Client

Government of the Kyrgyz Republic, with on-lending to Talas City for the benefit of the Talas Water Company.

EBRD Finance

Sovereign loan of up to €2.0 million to the Kyrgyz Republic, on-lent to Talas City for the benefit of the Talas Water Company.

Project Cost

The total sub-project cost is €5.9 million including technical cooperation. The sub-project will be co-financed by an investment grant from an international donor.

Environmental Impact

The project has been categorised B in accordance with EBRD’s 2008 Environmental and Social Policy. An Environmental and Social (E&S) Audit/Review of current E&S management practices, operations and facilities, and an Environmental and Social Analysis of the proposed Priority Investment Programme (PIP) is underway as part of the Feasibility Study, by independent consultants.

The potential E&S impacts of priority investments in rehabilitation and modernisation of the Company's existing water supply and wastewater services are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The initial due diligence results indicate, that the Company’s Environment, Health and Safety management capacity and capabilities are deficient, and that their current occupational health and safety and stakeholder engagement practices require further improvement to meet EBRD's Performance Requirements (PRs).

The implementation of the proposed PIP is expected to improve efficiency, reliability and the quality of water supply and wastewater services in Talas, thus contributing to the provision of uninterrupted access to safe drinking water, reducing leakages, preventing ground and watercourse pollution and improving public health.

An Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan (SEP) will be developed for the Company. This PSD will be updated upon completion of the due diligence.

Technical Cooperation

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

  • Sub-Project Implementation Support. International consultants to assist the sub-project implementation unit with engineering design, procurement, preparation and evaluation of tenders, contract award and administration, financial control, sub-project management and reporting. (€480,000 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. (€400,000 to be financed by an international donor the Shareholder Special Fund or the ETC 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

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