Novgorod District Heating Project

cancelled

The EBRD is considering financing the rehabilitation and upgrade of the district heating infrastructure in the City of Novgorod. The priority investments to be financed by EBRD will be defined by consultants in a feasibility study. Transition impact is expected to be achieved through the: “Teploenergo” MUE (the “Company”), a municipal company providing district heating services to both residential and industrial customers in the City of Novgorod (the “City”) and wholly owned by the City. Senior corporate loan to the Company of up to RUB 1,000 million (equivalent of around EUR 25 million), guaranteed by the Novgorod Oblast. Up to RUB 1.5 billion Categorised B in accordance with EBRD's 2008 Environmental and Social Policy. The Project is expected to improve efficiency of the district heating services in the City. The potential adverse future environmental and/or social impacts of the rehabilitation of the district heating systems are likely to be site-specific and can be readily identified and addressed through adequate mitigation measures. The environmental and social due diligence is on-going and will include an independent environmental and social audit/review of the Company's current EHS and labour/OHS management systems, operations and facilities, and an analysis of potential environmental, social, workers' and community's health and safety issues and benefits associated with the proposed investment project. Upon completion of the due diligence an Environmental and Social Action Plan (ESAP) satisfactory to the Bank will be prepared and agreed as a condition of the EBRD's investment to address any environmental and social issues identified during the due diligence. The ESAP will be targeted at ensuring the project's compliance with the Bank’s PRs, improving Company's operations and district heating facilities to meet national and EU standards. The Client will also 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. Grant funds will be sought for: