Khujand Solid Waste Management Project

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Translated version of this PSD: Russian The EBRD is considering providing financing for a programme of priority capital investments, to improve the municipal solid waste management services in the City of Khujand, the capital of Soughd Province in the north of the country. The project objectives include: (i) rehabilitation of waste collection, transportation, recycling and disposal services in Khujand and the surrounding area; (ii) restructuring of the waste management sector to increase operational efficiency and hygiene standards; and (iii) the commercialisation and corporatisation of the waste management operations of the solid waste management company to convert it into a financially and operationally self-sustainable entity The transition impact of this project is expected to include: The client for this project is the State Enterprise “Special Sanitary Cleaning Motor Pool” in the City of Khujand (the “Company”) responsible for solid waste collection in the City and surrounding area and utilisation of the collected waste at the City landfill. When approved by the EBRD’s Board of Directors, the Bank will provide a sovereign guaranteed loan to the Company in the amount of US$ 2.5 million. US$ 2.5 million including related technical cooperation to support the Company with the project preparation, implementation and its corporate development. It is expected that the proceeds of the loan will be supplemented by an investment grant of US$ 2.5 million, subject to availability, to be provided by bilateral donors or the EBRD Shareholder Special Fund. The potential adverse future environmental and social (E&S) impacts associated with the purchase of waste collection trucks, restructuring waste management system and rehabilitation and extension of the existing landfill are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. Therefore, the project is categorised “B”. The Environmental and Social Due Diligence (ESDD), which is currently underway includes an independent environmental and social audit of the Company's current operations and facilities, including the existing landfill, maintenance depots, and the existing waste management fleet, and an analysis of potential environmental and social issues associated with the proposed Priority Investment Programme (PIP). The Company's environmental and social management capabilities are also being reviewed and assessed, together with tariff affordability issues, livelihood and gender-related impacts. As part of the Project, the old part of the landfill will be closed and an extension will be constructed. The old landfill will be taken out of operation immediately after the new extention of the landfill is constructed. The initial results of the ESDD confirms that the existing waste management practices and facilities are not in compliance with the current EU legislation and the EBRD's requirements. Currently, the available machinery capacity and human resources for waste collection are rather limited and cannot cover an increase of the waste collection volume. The landfill site is being operated with very limited technical equipment and the operation does not comply with basic environmental and health standards. Also due to the lack of personnal protective equipment, health and safety standards for the workers performing waste collection and landfill operations are very poor. However, the initial investigations indicate that if adequate technical and operational measures are implemented, the area of the existing landfill can be used for future extension without significant risks to human health and environment pollution. The project will bring substantial environmental, health and safety benefits to the town of Khujand and the surrounding communities, by rehabilitation of waste collection, transportation, recycling and disposal services, increased operational efficiency and environment and hygiene standards. However, the initial results of the Feasibility Study indicates that due to the limitations to the budget of the PIP, no gas collection and flaring system or the need for long-term institutional, educational and organisational campaigns, can be included in the PIP. As a result, the Project will not be able to ensure full compliance with the relevant EU Directives and therefore a formal derogation from the Environmental and Social Policy will be sought. This PSD will be updated after completion of the ESDD and approval of the ESAP. The following technical co-operation (“TC”) funds are envisaged as part of this project: