Zivinice Regional Solid Waste Project

Location:

Bosnia and Herzegovina

Project number:

49631

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

A

Target board date:

28 Nov 2018

Status:

Concept Reviewed

PSD disclosed:

05 Jul 2018

Project Description

Construction of a regional, EU-compliant, solid waste landfill with the introduction of waste separation and a recycling yard which will serve three municipalities in Tuzla Canton, namely: Zivinice, Banovici and Kladanj (the "Project"). The Project is proposed to be financed by an EBRD loan of up to EUR 6 million and co-financed with a potential investment grant of up to EUR 2 million. The EBRD sovereign loan will be provided (via a legislated cascade of sub-loans) to the newly established regional solid waste company "Eko-Sep".

Project Objectives

Improvement of the overall solid waste management system in the three municipalities, a reduction of water and soil pollution, a reduction of emissions of greenhouse gases, and a reduction of the amounts of disposed waste.

Transition Impact

The Project derives potential transition impact largely from its environmental benefits and by the introduction of a Public Service Contract between the municipalities and the Company,
eliminating cross-subsidies and improving the operational efficiency of the Company. The 'green' transition quality stems from its environmental impact (i.e. the establishment of an EU-compliant, efficiently operated regional solid waste landfill with a recycling yard).

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

The Borrower will be the State of Bosnia and Herzegovina.

The Client will be a Special Purpose Vehicle ('SPV") company, regional sanitary landfill "Eko-Sep" ltd.

The direct beneficiaries will be the Municipalities Zivinice, Banovici and Kladanj with a total population of 95,000 inhabitants. They are the founders and co-owners of the SPV company Eko-
Sep.

EBRD Finance Summary

EUR 6,000,000.00

EUR 6,000,000 to be provided in two tranches. Committed Tranche 1 of EUR 4,000,000 and ncommittted Tranche 2 of EUR 2,000,000.

Total Project Cost

EUR 8,000,000.00

Environmental and Social Summary

Categorised A (2014 ESP). The project involves the construction and operation of a large-scale unicipal solid waste facility and so requires the development and disclosure of an ESIA. An EIA
has been prepared for local approval purposes. EBRD has engaged consultants to carry out a gap nalysis of this EIA and to prepare a Stakeholder Engagement Plan (SEP), Environmental and Social Action Plan (ESAP) and Non-Technical Summary (NTS). The ESIA documents were published on 04 uly 2018 or for public comment in Bosnian and English. The gap analysis identified the need for a umulative impact assessment and some updated baseline data. This work has been completed and his supplementary information is included in the disclosure package.

The construction of an EU-compliant landfill and regional waste management centre will significantly upgrade waste management services for three municipalities, Zivinice, Banovici and Kladanj.
Together they have a population of around 95,000. The loan and the grant will finance the first two phases of the project, which include the construction of the landfill body, facilities for mechanical biological treatment of waste, composting, a transfer station, waste sorting facilities and landfill gas collection and flaring. Phases three and four will be financed and approved separately and will involve construction of a leachate treatment plant and system for electricity generation from landfill gas.

The selected site for the project is located in the Municipality of Zivince approximately 12km from the urban centre. It covers 21 hectares and was previously used as a disposal site for tailings from the local coal mine, creating an approx. 53 m deep tailings layer. The current state of the site is modified and degraded. Access to the site is via a 1.2 km paved road which is in poor condition and will be reconstructed. The nearest settlement is the village of Jezevac which is located 500m from the boundary of the project. It is inhabited by internally displaced persons with a population of approximately 30 people. The project could impact on noise and air quality in the settlement and to address this, the ESAP requires the introduction of a forested green zone between the village and the landfill. A consultation meeting was held in Jezevac in April 2018 and consultation on the EIA was carried out in 2015. The SEP sets out plans for additional consultation along with the mechanism for stakeholders to raise grievances with the company.

The ESAP for the project contains actions related to permitting, contractor management and monitoring of noise and emissions. Collection and flaring of landfill gas will avoid GHG emission or more than 20 thousand tonnes per year of CO2e and project allows for recycling and reuse of up to 5000 tonnes of material. No involuntary land acquisition or resettlement is required. The due diligence consultants have confirmed that the project has been structured to meet EBRD Performance requirement and relevant EU Directives. EBRD will monitor implementation of the project through client reports and site visits if required.

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

Technical Cooperation

Technical Cooperation for this operation will be provided to assist with: (i) environmental impact assessment gap analysis; (ii) technical and financial due diligence, (iii) advance procurement assistance; and (iv) corporate development assistance - to be financed by EBRD or bilateral donor funds.

Additional technical cooperation for supervision of construction works - is proposed to be financed under the EU's Western Balkans Investment Framework ('WBIF').

Company Contact Information

Selmir Sljivic, Director
sljivics@gmail.com
Tel: +387 35 775 402
Eko Sep doo, Oslobodjenja bb Blok 5, 75270 Zivinice

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)

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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.