NOVGOROD WATER SERVICES REHABILITATION

cancelled

Investments targeted at improving the performance of Novgorod's utilities, particularly water services and district heating, improving the city's ability to manage its utilities, and enhancing its creditworthiness. Investments targeted at improving the performance of Novgorod's water services and district heating utilities, improving the city's ability to manage its utilities, and enhancing its creditworthiness. The project will include corporatisation and commercialisation of utilities. The project supports transition through the improvement of essential municipal and environmental services. It will also encourage reform in funding, moving way from traditional centralised funding. The project will emphasise the financial and economic feasibility of investments and aims to enhance the municipality's creditworthiness so that in future it can borrow in its own right. The borrower will be the City of Novgorod. Loan proceeds would be on-lent to the beneficiary utilities (water, district heating) as appropriate. Loan of US$ 35 million (ECU 31.3 million), either with sovereign guarantee or as a sovereign loan. Donor grants of US$ 15 million are being sought for environmental and other components. US$ 68 million (ECU 61 million). The project will have predominantly environmental benefits, particularly regarding health issues. The proposed investments will help to improve the basic living conditions for the population living in the service area and will reduce water consumption, water losses and energy use. There will also be a significant positive impact on the environment through improved quality of effluents from the waste-water treatment plant and a reduction in leakage. The Environmental Analysis will review potentially negative environmental impact associated with construction works (traffic disturbance, noise, dust, removal and disposal of hazardous materials, workers' health and safety etc.) and operation of the facilities. Technical cooperation funding will be required for Corporate Development Assistance and Implementation Support.