Kutaisi Water Project Phase II

cancelled

The EBRD is considering a second phase project following the Kutaisi Water Supply Improvement Project Phase One (total cost EUR 12.5 million) which is currently financing water supply priority investments. The Kutaisi Water Supply Improvement Project Phase Two will fund additional water supply, wastewater treatment and storm water investments in the Avtoqarkhana district of the City containing almost 40,000 residents, or 35 per cent of the total population. Phase Two is intended to extend the transition impact achievements of Phase One, and will bring enhanced Transition Impact with two additional initiatives: The EBRD loan will be provided to Georgia and on-lent to the Kutaisi Water Company, which implements the project and makes the loan repayments to the government from its tariff revenues. The City of Kutaisi and the Ministry of Economic Development will enter into a project support agreement containing performance undertakings. The proposal is for a loan of up to EUR 1.5 million EBRD loan to Georgia to finance municipal water supply capital expenditure. The total project cost is estimated to be up to EUR 13.8 million. The Bank will lend EUR 1.5 million, a grant of EUR 10.3 million is considered from donors and there will be a EUR 2.0 million local contribution. Screened B in accordance with EBRD's 2008 Environmental and Social Policy. The project will improve the quality and efficiency of water supply and wastewater collection in the Avtoqarkhana district of the City of Kutaisi, thus providing uninterrupted access to safe drinking water, preventing pollution of the watercourses and improving public health. The environmental and social due diligence is on-going and will include an environmental, health and safety and social audit to assess the Company's current environmental and social management systems and the Company's past and current performance against EBRD's Performance Requirements (PRs), and environmental and social analysis of any potential environmental and social impacts and benefits of the priority investment programme (PIP). An Environmental and Social Action Plan will be prepared and agreed with the Company to address any environmental and social issues identified during the due diligence to achieve and maintain compliance with the Bank's PRs within a reasonable time-frame. The Client will develop a Stakeholder Engagement Plan, including a grievance mechanism, and will release information on environmental and social performance and a summary of the agreed Action Plan to stakeholders. This PSD will be updated when the results of due diligence are known. Three technical co-operation assignments are considered to support project development and institutional development as follows: