Project description
and objectives:
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The EBRD is considering to provide a senior loan of up to RUB 400 million (~ EUR 11.4 million) to the Municipal Unitary Enterprise “Petropavlovsk Gorvodokanal” (the “Company”), the water utility in Petropavlovsk-Kamchatsky (the “City”) in the Russian Far East to finance a priority investment programme. The loan will be supported by a guarantee from the City.
The loan proceeds will be used to finance PIP focusing on:
(i) rehabilitation and upgrade of water pumping stations with the objective to improve energy efficiency of operations
(ii) upgrade of wastewater treatment facilities to improve reliability and efficiency;
(iii) rehabilitation of water distribution networks to reduce water losses; and
(iv) other auxiliary investments.
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Transition
impact:
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Transition impact comes from:
(i) Commercialisation
The operation will result in much needed efficiency improvement in the provision of municipal water services to the city residents and will support institutional strengthening;
(ii) Tariff reform
The operation will facilitate a comprehensive tariff reform based on full cost recovery, and
(iii) Transfer of skills and standards
Procurement and decision making standards will be improved through application of the Bank’s Procurement Policies and Rules. Skills and knowledge transfer also occurs during preparation of the Technical Feasibility Study and subsequent project technical implementation.
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The client:
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Petropavlovsk Gorvodokanal is a municipal unitary enterprise fully owned by the City providing water supply and waste water services to Petropavlovsk and a number of neighbouring settlements: Avacha, Zaozerny, Khalaktyrka, Zavoyko, Dolinovka, and Chapaevka, which are also included in City limits. The Company is servicing 196 thousand residents, heat supply organisations, and other consumers.
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EBRD
finance:
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Senior loan to the Company, of up to RUB 400 Million (equivalent of approximately € 11.4 million) under a guarantee of the City.
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Total project cost:
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Total Project cost (Priority Investment Program): RUB 600 million (~ EUR 17.1 million).
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Environmental impact:
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Screened B/1. The project would improve the quality and efficiency of water utility services in the City of Petropavlovsk-Kamchatsky. The environmental benefits of improving the technical infrastructure and operational management are expected to be significant as they will improve energy efficiency as well as improve the quality of drinking water thereby reducing the threat to public health and pollution. A combined Environmental Analysis and Environmental Audit will need to be carried out to quantify environmental risks, benefits and impacts and to develop mitigation measures, as needed. The environmental due diligence will be part of the Feasibility Study and will bring forward environmental considerations to be taken into account during the selection of the priority investment components.
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Technical
cooperation:
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Project Preparation (technical cooperation funds used):
- Technical Feasibility Study (EUR 349,000), financed by the Canadian International Development Agency (CIDA);
- Creditworthiness Assessment of the City (EUR99,180), financed by the Bank’s own resources.
Project Implementation (technical cooperation funds to be used):
- Project Implementation Unit Training and Initial Support (up to EUR 150 000) – donor to be identified
- Financial and Operational Performance Improvement Programme (up to EUR 350 000) – donor to be identified
- Creditworthiness Enhancement Programme focused on debt management program for the City (EUR 150 000) – 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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