Water and Waste Water Modernisation Framework

Location:

Kazakhstan

Project number:

46814

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

FW

Approval date:

27 May 2015

Status:

Approved

PSD disclosed:

26 Sep 2014

Sub-projects signed under this framework

Project Description

Under the Enhanced Partnership – Water and Waste Water Modernisation Framework the EBRD is considering financing priority capital investments in water and waste water sector for selected cities in Kazakhstan. The Framework consists of sub-projects aimed at improving the water and waste water infrastructure. This Framework is integral part of Enhanced Partnership Framework Arrangements, signed between the EBRD and Government of Kazakhstan in May 2014.

Loans will be provided to local utilities and proceeds from loans and local contribution for each sub-project will address urgent needs in rehabilitation of water and waste water infrastructure in respective cities.

The Bank will closely monitor the progress of the framework. For each sub-project, it is proposed that the following indicators be monitored before and after the project implementation:

  • Population with improved water and waste water services, measured by the number of households multiplied by the average household size.
  • Implementation of the financial and operational targets through technical assistance.

Transition Impact

Within the partnership agreement, EBRD intends to conduct policy dialogue with the government to improve the national policy and regulatory frameworks. Specific areas of focus are:

(i) Development of a model Public Service Contract with performance indicators to be deployed across the country;
(ii) Corporate Development and Restructuring focused on cost reduction measures in all participating utilities;
(iii) Tariff increases and improved collection rates with the aim of achieving operating cost recovery in all participating utilities;
(iv) Wider penetration of individual meters and implementation of meter-based billing system;
(v) Private sector participation – in the form of management contracts, leases or concessions - on a case by case basis;
(vi) Application of Best Available Technology (BAT) and Resource Efficiency.

The Client

Water company in each participating city.

EBRD Finance

For each sub-project the EBRD will provide loans to the water companies with Project Support Agreement signed with local authorities. Total amount of the loans proposed under the framework: EUR 150 million.

Sub-projects will be co-financed by local contribution provided by local authorities or Government of Kazakhstan.

Project Cost

Total project cost to be determined.

Environmental Impact

The Framework is not categorised; however, each sub-project under the Framework will be categorised at CRM stage and will undergo separate Environmental and Social Due Diligence (ESDD). The sub-projects are expected to help in providing a wide range of environmental, health and safety improvements and enhancing quality and reliability of the key municipal services in various cities across Kazakhstan. The ESDD for each sub-project will include at minimum an assessment of potential environmental and social (E&S) impacts and benefits, and an E&S audit of the operations and facilities of each participating Municipality to help structure the PIPs. The sub-projects will aim to achieve EU compliance and good industry practice, and also adopt EU Best Available Techniques (BAT), where applicable. Corrective Environmental and Social Action Plans (ESAPs) and Stakeholder Engagement Plans (SEPs) will be prepared for implementation during the projects, where necessary. All sub-projects categorised "A" will be submitted to Board for approval regardless of size of the loan. A separate PSD will be published for each sub-project under the Framework and will include a detailed E&S section upon completion of ESDD.

Technical Cooperation

Each sub-project will have individually designed pre- and post-signing TCs; typically this will include:

Pre Loan Signing

Feasibility Studies which may consist of financial, technical and environmental and social due diligence. The estimated average cost of the assignment, per sub-project, is EUR 300,000.

IFRS audit of the financial statements of prospective borrowers. The estimated average cost of the assignment, per sub-project, is EUR 50,000.

Post Loan Signing

Project Implementation Support to facilitate the timely and effective implementation of the sub-project by rendering assistance to the utility in areas such as engineering design, procurement, contract administration, engineering supervision, financial control and project management/reporting. The estimated average cost of the assignment, per sub-project, is EUR 600,000.

Corporate Development Plan, Financial and Operational Performance Improvements Programme, Creditworthiness Enhancement Programme or similar type assignments, which may support operational and financial improvements, secure the sustainability of operations and improve the entities ability to attract and manage investment finance in the future. The estimated average cost of each assignment, per sub-project, is EUR 400,000.

Public Service Contracts: The development and introduction of PSCs between each company and respective Akimat to ensure the sustainable development of the partner companies in the long-term. The estimated average cost of the assignment, per sub-project, is EUR 50,000.

 

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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