Nizhny Novgorod Water

cancelled

Translated version of this PSD: Russian The EBRD is considering to co-finance a portion of a long term investment programme of RUB 9 billion (~EUR 225 million) over 2011-2016 for the rehabilitation and upgrade of water and wastewater infrastructure and facilities in Nizhniy Novgorod. Transition impact will be delivered through the following: OJSC “Nizhegorodsky Vodokanal” (the “Company”), a local utility company providing water and wastewater services in Nizhny Novgorod, the fifth largest city in Russia and capital of Nizhegorodskaya oblast (the “Oblast”). The Company is wholly owned by the City. A senior loan to the Company of up to RUB 5 billion (~EUR 125 million) in two equal tranches of up to RUB 2.5 billion (~EUR 62.5 million). Availability of the second tranche will be based on progress towards achieving specific financial targets. The total cost of the Company’s investment programme is RUB 9 billion (~EUR 225 million). The proposed project has been categorised B in accordance with the 2008 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 Company’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 Company’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. The 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. Project Management Consultants for the project management, procurement, engineering and supervision of works (up to EUR 500,000; donor to be identified).