Bijeljina Waste Water Collection System

complete

The proposed project concerns a loan towards the cost of construction of the priority waste water collection network in the town of Bijeljina in order to prevent further pollution of underground water (aquifers) that are used as the source of potable water, thus reducing the health hazard for the town’s population. The project envisages simultaneous replacement of dilapidated asbestos-cement water pipes. The project would be implemented by Vodovod I Kanalizacija Bijeljina with support from the Bijeljina Authorities. Preparation and implementation of the Financial and Operational Improvement Programme for the company with the focus on cost reductions and efficiency gains. City of Bijeljina Credit Enhancement Programme to facilitate future borrowing without State Guarantees. Commercialisation of the water operations through introduction of a transparent tariff policy to secure a full cost recovery. Policy dialogue in regard to transfer of ownership from the central government to the local authorities. Improved procurement skills by applying international open tendering procedures. Vodovod i Kanalizacija Bijeljina is a joint stock company with 65% of the equity owned by the Government of Republika Srpska, 10% owned by the pension fund and 5% by the Restitution Fund of Republika Srpska. The remaining 20% is owned by individuals and privatisation investment funds. EUR 7.0 million Sovereign Loan to Bosnia and Herzegovina to be on-loaned under same conditions to Republika Srpska and further to the company Vodovod I Kanalizacija Bijeljina. City of Bijeljina will contribute EUR 4.5 million towards the overall project cost (including taxes). EUR 11.5 million. Screened B/1. The project offers the opportunity to construct wastewater collection system in the town of Bijeljina, to improve sanitation conditions and protect groundwater resources. Environmental due diligence needs to be carried out to identify current environmental conditions and to predict potential impacts of the construction of the wastewater collection system, and to assess the ability of the project to bring the facilities towards compliance with national and EU environmental standards. It should be noted that the proposed Phase 1 project will only involve sewerage collection and no wastewater treatment. Therefore, it will not fully comply with the EBRD’s Environmental Policy requirements. Moreover, the construction of the wastewater collection system and discharging into local water bodies may be associated with significant environmental impacts. Those will need to be adequately assessed within the framework of environmental due diligence. The Client should commit to carry out further investments to achieve full compliance with the EU environmental standards. TC funds are being sought for the following support: Project management (design, procurement and supervision) Assistance to the City of Bijeljina with a Creditworthiness Enhancement Programme