Lipetsk Wastewater Treatment Plant

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Translated version of this PSD: Russian The EBRD is considering providing a loan of up to RUB 300 million (~EUR 7.6 million) to Lipetsk Municipal Unitary Enterprise “Lipetsk Aeration Station” to finance the rehabilitation of the main wastewater treatment plant of the City of Lipetsk. The project will contribute significantly to improving the environmental and health situation in the Lipetsk region by decreasing the level of polluting discharges into the Voronezh river and the Volga-Don basin. The proposed investments will also reduce energy consumption and operating costs of the Company. The transition impact will be delivered through: (i) A Public Service Contract establishing an arms length relationship between the Company and the City, regular tariff adjustments, incorporation of investment costs on a systematic basis and transparent tariff-setting process that will increase the financial and operational sustainability of the Company and allow medium to long-term investment financing. (ii) Involvement of international consultants at the preparation and implementation phases through the technical cooperation initiatives that will allow relevant employees of the City and the Company to tap international financial, managerial, procurement and engineering expertise and result in significant knowledge and skills transfer. (iii) Rehabilitation and modernisation of wastewater treatment plant that will result in energy efficiency improvement by reducing energy consumption for wastewater operations. The technical due diligence will assess and quantify projected energy efficiency gains. (iv) Adoption of a Stakeholder Engagement Plan (SEP), as part of the Environmental and Social Action Plan, that will allow the Company to improve its business conduct and external communications. Lipetsk Municipal Unitary Enterprise “Lipetsk Aeration Station” (the “Company”), a municipal company, wholly owned by the City of Lipetsk (the “City”). Senior loan of up to RUB 300 million (~EUR 7.6 million) to the Company under the full municipal guarantee of the City of Lipetsk (the “City”). RUB 360 million (~ EUR 9.2 million). Categorised B in accordance with EBRD's Environmental and Social Policy. The project is expected to have environmental benefits by reducing polluting discharges from Lipetsk to the Voronezh river and the Volga-Don basin and by improving energy efficiency. Environmental and social due diligence will be undertaken covering the WWTP networks, sludge management practises and any other associated facilities. Based on the results of due diligence, an Environmental and Social Action Plan (ESAP) 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. A project-specific Stakeholder Engagement Plan (SEP) will need to be prepared. This PSD will be updated when the results of due diligence are known. Project preparation Project implementation