Surgut Waste Water Collection and Rehabilitation

complete

The EBRD is considering providing finance for the renovation of major wastewater collectors in the city of Surgut in order to improve environmental standards. Positive impact: This is a follow-up second project with a client that has had a good track record of reform. As several transition challenges have already been addressed (tariff increases, service contract, collection improvements, financial restructuring) in the first engagement with the company (Surgut MSDP), this project is expected to generate transition impact through addressing the remaining challenges, i.e. moving to a meter-based billing system and adoption of a multi-year tariff policy that incorporates capital charges beside the current coverage for operation and maintenance costs. Surgut Municipal Unitary Enterprise “GorVodokanal”, a water and wastewater operator owned by the city of Surgut, responsible for provision of water and wastewater services to the city residents. Long term loan facility to the Company of up to RUB 200 million (~ EUR 5.6 million). Total project cost: RUB 300 million (~ EUR 8.4 million). Screened B/1. The project involves the rehabilitation and upgrade of the wastewater collectors for the existing Client, and it is expected to further improve operating efficiency and environmental standards on the wastewater collection services in the City of Surgut. The environmental due diligence will review the current status of the existing facilities, and will assess environmental benefits and impacts of the proposed project components. An Environmental & Social Action Plan (ESAP) will be prepared based on the outcomes of the due diligence. Technical and Environmental due diligence (up to EUR 40,000), financed by the Bank’s own funds; Project Implementation Consultant (up to RUB 10 million (~EUR 280 000)).