Cazin Waste Water

cancelled

Translated version of this PSD: Bosnian The EBRD is considering providing a loan in the amount of up to EUR 5 million for construction of the sewage network and wastewater treatment plant in Municipality Cazin, Bosnia and Herzegovina, which will be operated by the Cazin public utility company for water and wastewater (the “Company” or “JKP Vodovod”). The Project should contribute to environment protection and improve the quality of services in the Municipality Cazin which has about 70,000 inhabitants. As part of the project, the company will implement improved cost-recovery principles in order to improve overall business performance. The project will provide a better framework for markets, with an arms-length service agreement between the Municipality and the Company with the aim of setting service standards, efficiency indicators, automatic tariff adjustments and measures for bill collection. The project will improve standards for corporate governance, by assisting the Company to meet compliance standards as per the EU Directive for urban wastewater. The client is the Cazin Public Utility Company for Water and Wastewater which is wholly owned by the Municipality of Cazin. Sovereign loan in the amount of up to EUR 5 million. The Swedish International Development Cooperation Agency (Sida) is considering to provide an investment grant in the amount of EUR 2.5 million. The Government of the Netherlands, through its ORIO programme, is contemplating an investment grant in the amount of EUR 2.0 million in parallel with grant funds in the amount of EUR 1.5 million towards financing the operation and maintenance costs of the wastewater treatment plant. EUR 15.6 million. The project has been categorised B in accordance with EBRD’s 2008 Environmental and Social Policy. The potential E&S impacts of expansion of sewerage collection networks and construction of a wastewater treatment plant are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The investment components proposed fall under Annex II of the EU EIA Directive and will require a screening decision from the competent environmental authority to confirm whether the project will have significant environmental impacts and whether an EIA would be required. Providing high quality wastewater services to communities, the project is expected to result in significant community health benefits. The due diligence will include an E&S review of the corporate EHSS management systems, an audit of the existing facilities and operations of the Company, and an E&S analysis of the proposed investments to assess compliance with the EBRD PRs. An Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan (SEP) will also be developed. This PSD will be updated upon completion of the due diligence. EUR 300,000 from the European Western Balkans Joint Fund (EWBJF) for preparation of the Feasibility Study. EUR 350,000 from the EBRD Shareholder Special Fund for design preparation and implementation support.