ST PETERSBURG WATER & ENVIRONMENTAL SERVICES IMPROV. PROGRAM

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An investment programme to improve water supply and water demand management as well as waste-water collection services in the city of St Petersburg. Following signing this project has been restructured in April 1999. The principal objective is to address the investment needs of St Petersburg regarding water supply and waste-water collection. The secondary objective is to enhance the financial and operational performance of Vodokanal through improved management, increased cost efficiency and cost recovery. The investments will improve the availability and quality of water supply services in St Petersburg and improve the recreational value of coastal areas in the Gulf of Finland. The State Unitary Enterprise Vodokanal of St Petersburg. EBRD loan: DEM 35 million Co-financing (NIB): DEM 15 million State/local contribution: DEM 15 million International grants: DEM 21 million. DEM 86 million (ECU 43.8 million). This project's objectives are primarily environmental as it would contribute to the improvement of the basic living conditions in a large part of St Petersburg through improving the quality of drinking water and the reliability of the water supply. It would also bring environmental benefits through the reduction of pollution to the Neva River and the Gulf of Finland. The environmental analysis which has been prepared for this project demonstrated that all key environmental issues associated with the investment programme will be adequately addressed in the design and during the construction. In particular, the implementation of the project will contribute to achieving the following objectives: The borrower will be requested to report annually to the EBRD on the project implementation, including environmental and health and safety issues. Technical cooperation will be provided by bilateral donors for the Corporate Partnership Programme, engineering design, and the preparation of tender documents as well as for the completion of the Sestoretsk Waste-water Treatment Plant.