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2008-09-15 00:00:00
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| Project name: |
Vozdvizheniye |
| Country: |
Russia |
| Project number: |
38681 |
| Business sector: |
Municipal and environmental infrastructure |
| Public/Private: |
Public |
| Environmental category: |
B |
| Board date: |
26 January 2009 |
| Status: |
Passed concept review, Pending final review |
Date PSD disclosed:
Date PSD updated: |
24 September 2008
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| Local language translation: |
Перевод на русский  |
| Date translation disclosed: |
6 October 2008 |
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Project description
and objectives:
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The EBRD is considering to finance the completion of the Water Treatment Plant “Vozdvizhenie” (with a capacity of 100,000 m3 per day) and transmission water mains connecting the water treatment facility with the municipal water supply system, which will allow to improve water quality and sustainability of water service provision to the residents of the city of Yaroslavl.
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Transition impact:
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The Yaroslavl water company, YaroslavlVodokanal (“YVK” or the “Company”), has recently been corporatised into an open joint stock company and moved to the second stage of its transition towards a modern, efficient and market oriented water utility.
Framework for markets and tariff reform
The corporatisation of YVK into an open joint stock company coupled with an enhanced service contract for YVK as operator as well as the revision of the tariff policy resulting in further advancement of the tariff setting methodology (through introduction of an investment component on a multi-year basis reflecting construction and operation of the new assets under the Vozdvizhenie project) will contribute to improve the framework for markets.
Demonstration of successful restructuring
The reorganisation of YVK into an open joint stock company will lead to improvement of corporate governance and decision making standards at the Company level as these will be brought in line with international practice of corporate governance acceptable in the water sector. The operation will result in further efficiency improvement in the provision of municipal water services to city residents and will support institutional strengthening. The demonstration effect will be further enhanced through the revision of the service contract introduced in 2005 to ensure good standards of water services to city residents.
YVK is one of the best municipal utilities in Russia and could be seen as a role model for large- and medium-size cities across the country, which could follow the example of a successful restructuring in the municipal water sector.
Additionality
The transaction is additional by providing long-term RUB financing with commercial bank participation for the construction of a water treatment plant and related infrastructure.
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The client:
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Open Joint Stock Company “YaroslavlVodokanal”, a water operator owned by the city of Yaroslavl responsible for provision of water and wastewater services to the city residents.
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EBRD finance:
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Long term syndicated A/B loan facility to the Company of up to RUB 1.5 billion (~ EUR 41.7 million).
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Total project cost:
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Total project cost: RUB 2.0 billion (~ EUR 55.6 million).
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Environmental impact:
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The project is screened as B/1. Construction related impacts that may arise in this project are likely to be localised, short term in nature and can be easily mitigated or prevented by good construction practices. The project will have a considerable positive impact on the drinking water quality in Yaroslavl.
As part of the environmental due diligence, an environmental analysis will need to be carried out to identify and quantify environmental benefits and to assess the adverse impacts arising from the project as well as to make recommendations for mitigation measures. In addition, an environmental review will need to be carried out to identify any issues associated with existing facilities. As part of the environmental audit, the consultant will review the Annual Environmental Reports received from YVK for the Yaroslavl Municipal Water Services Development Programme (Project ID 13383) and verify the status of the actions identified in the Environmental Action Plan (EAP) of that project. The environmental review will also cover the issues with regard to the nearby upstream industrial facilities. An Environmental & Social Action Plan (ESAP) including a monitoring plan will need to be developed and agreed with the Company, based on the recommendations of the environmental due diligence. This summary will be revised as soon as the environmental due diligence is finalised to include the main outcomes of the due diligence and the implementation requirements.
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Technical
cooperation:
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Project Preparation (technical cooperation funds used):
- Technical and Environmental due diligence (up to EUR 30,000), financed by the Bank’s own funds;
- Preparation of the Terms of Reference for design works and tender documents (up to EUR 50,000), financed by the Bank’s own resources.
Project Implementation (technical cooperation funds to be used):
- Corporate Performance Enhancement (up to EUR 100 000) – donor to be identified.
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.
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EBRD contact:
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Eugene Ofrikhter, Operation Leader: ofrikhte@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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