GrCF2 W2 Lviv Wastewater Project

signed

The provision of a € 15 million loan to Lviv City Communal Enterprise "Lvivvodokanal" (the "Company") to finance critical rehabilitation and modernisation of two operating wastewater treatment plants. The EBRD loan is a part of a broader financial package, which includes a € 3 million loan from the Nordic Environment Finance Corporation. The Project is part of the Green Cities Framework 2. The facility is designed to serve as a sector-wide catalyst for addressing environmental challenges at the city level. The Project aims to provide a sustainable operation of the existing wastewater treatment plants in the City of Lviv and enhance wastewater treatment quality to ensure compliance with the national and EU/HELCOM standards/recommendations for effluent quality treatment and reduction of air, soil, and water pollution. The Project is to facilitate the implementation of the on-going Lviv wastewater biogas project and improve the Company's operational and financial performance and capacity. The project is part of the Green City Framework 2 (GrCF2). The GrCF2 is a strategic and multiproject approach targeting environmental issues in selected large cities in our countries of operation. The primary goal is to achieve significant environmental improvements and promote the green transition quality within the relevant cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination among various stakeholders within the relevant cities in order improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. These objectives are supported by the development and implementation of a city-specific GCAP identifying and prioritising environmental challenges and ways to address them through targeted investments, services and policy instruments. The project will pursue a minimum of two TI objectives, being green and well governed, all of which is consistent with the GrCF transition impact. WATER AND SEWAGE COMPANY OF THECITY OF LVIV Lviv City Communal Enterprise "Lvivvodokanal", a municipal utility wholly-owned by the City of Lviv, is responsible for the water intake, treatment, supply and distribution as well as for the wastewater collection, treatment and discharge in Lviv. The Company operates 1100 km of water networks, water treatment facilities and 17 water intakes located at the distances of 10 to 105 km from the City. The Company also operates two wastewater treatment plants located at each bank of the Poltva River (the Baltic Sea catchment area). EUR 15,000,000.00 EUR 26,400,000.00 The proposed project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures. The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements. An Environmental and Social Action Plan (ESAP) will be prepared  for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders. This PSD will be updated when the results of due diligence are known. Pre-signing: Post-signing: Dmytro Vankovych lvivvodokanal@ukr.net +38 (032) 240-11-40 +38 (032) 276-74-07 https://lvivvodokanal.com.ua/ 64 Zelena St., Lviv, Ukraine 79017