Vahdat SW Project Sub-project

Location:

Tajikistan

Project number:

49295

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

13 Nov 2018

Status:

Cancelled

PSD disclosed:

21 Nov 2018

Translated version of this PSD: Russian

Project Description

Provision of a loan of up to EUR 1.7 million to State Enterprise "Utility Management and Construction Company" of the city of Vahdat (the "Company"), a company responsible for the provision of solid waste services in the city of Vahdat (the "City").

The financing plan also includes an investment grant of EUR 1.7 million from international donors or the EBRD Shareholder Special Fund ("SSF") to facilitate implementation of the project.

The proceeds of the loan and the grant will be used to finance construction of a new sanitary landfill, as well as to upgrade solid waste collection and transportation systems. The project will result in improved solid waste services and environmental standards in Vahdat.

Project Objectives

1. Rehabilitation of the solid waste infrastructure in Vahdat; and

2. Improvement of the Client's financial and operational management.

Transition Impact

Strong Good

The project's transition impact includes:

  • Improved standards of transparency and governance via the introduction of a Public Service Contract;
     
  • Development of a tariff methodology and associated tariff amendments to achieve cost recovery and increased collection rates;
     
  • Building the solid waste company's capacity through the preparation of a business plan and FOPIP application of IFRS, implementation of an MIS, accounts separation between landfill and waste collection;
     
  • Introduction of a formal consultation process with solid waste service users in the form of a community-based stakeholder participation programme.

Moreover, the project's environmental standards are substantially higher than local standards and practices. The project is also intended to achieve inclusion impact by providing solid waste services to households and improving health and living standards via controlled waste collection and landfill operations.

Client Information

UTILITY MANAGEMENT AND CONSTRUCTION COMPANY OF THE CITY OF VAHDAT

A municipal company, wholly owned by the city of Vahdat. Its main activities include solid waste management, street cleaning and municipal construction activities. As part of the project, reorganisation of the Company will be undertaken to separate solid waste management and street cleaning activities into a separate entity.

EBRD Finance Summary

EUR 1,700,000.00

A loan of up to EUR 1.7 million to the Client under a sovereign guarantee.

Total Project Cost

EUR 3,400,000.00

Project Capex is up to EUR 3.4 million.

Environmental and Social Summary

The project has been categorised B in accordance with the Bank's 2014 Environmental and Social (E&S) Policy, following an Initial Environmental and Social Examination ("IESE"). The IESE confirmed that the project's potential adverse impacts would be localised and readily addressed through careful design, mitigation measures and appropriate management practices.

The environmental and social due diligence ("ESDD") carried out by independent consultants reviewed the solid waste management company's current environmental and social management practices, existing facilities and operations, and conducted an Environmental and Social Analysis of the project.

The ESDD showed that the Company's current waste management practices and facilities are poor and do not comply with the relevant EU standards or the EBRD's Performance Requirements ("PRs"). At present, solid waste is disposed of at the dumpsite managed by the Company.

Operations at the site do not meet basic environmental, health and safety standards, and health and safety standards for workers performing waste collection and landfill operations are low. Despite all the improvements to be delivered by the project, further investments would be needed to achieve compliance with EBRD PRs and EU Directives with respect to management of hazardous and medical waste, as well as waste recovery and recycling. Therefore, on account of limited financial resources and affordability constraints, derogation from the 2014 Environmental and Social Policy ("ESP") is sought.

The shortfalls from EU requirements are not considered to pose significant environmental, health or safety risks.

The Company will provide the Bank with annual environmental and social reports, including updates on the implementation of the Environmental and Social Action Plan. The Bank will conduct monitoring visits, as required, and commission a completion audit.

Technical Cooperation

The following technical cooperation (the "TC") assignments are envisaged as part of this project:

Pre Loan Signing

  • Technical due diligence to support scoping and structuring of the project, financial analysis and an environmental and social assessment (EUR 190,000 financed by the SSF)

Post Loan Signing

  • Project Implementation Support. International consultant to support the Project Implementation Unit with detailed engineering design and approval, procurement, preparation and evaluation of tenders, contract award and administration, financial control, project management and reporting.

    The assignment's cost is estimated at up to EUR 500,000, proposed to be provided by an international donor or the SSF;
     
  • Corporate Development Support Programme. The assignment's cost is estimated at up to EUR 300,000, proposed to be provided by an international donor or the SSF.

Company Contact Information

Mr. Rasulov Ilhom
mustafo54@mail.ru
+992 313623984
7 Barotov street, Vahdat, Tajikistan, 735400

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

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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