Yakutsk Water Modernisation Project

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Translated version of this PSD: Russian The EBRD is considering to provide a senior loan up to RUB 2,100 million (~EUR 51.7 million) to Open Joint Stock Company “Vodokanal” (The “Company”) a public utility enterprise responsible for the provision of water supply and wastewater services in the City of Yakutsk (the “City”), the capital of the Republic of Sakha (Yakutia) (the “Republic”). The proceeds of the proposed loan will be used to co-finance Company’s Priority Investment Programme (the “PIP”) aimed at rehabilitation and modernisation of the water intake and water supply systems in the City and necessary energy efficiency improvements. The PIP components include construction of (i) basin pond for water intake with extended capacity; (ii) pumping station (including installation of energy efficient pumps); (iii) water treatment plant modernisation; (iv) series of smaller investments targeting energy efficiency improvements. Transition impact is expected to be achieved through the: Open Joint Stock Company “Vodokanal”, a public utility company located in Yakutsk, wholly owned by the Republic of Sakha (Yakutia), responsible for provision of water supply and waste water services in the City. Senior loan of up to RUB 2,100 million (~ EUR 51.7 million) to the Company. Up to RUB 3,956 million (~EUR 97.4 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. Environmental and social due diligence (ESDD) of the Company and the project was undertaken by independent consultant, consisting of an E&S audit of the Company's management systems and practices, the existing facilities and operations, and an E&S analysis of the impacts and benefits of the proposed priority investment programme (PIP). The ESDD confirmed that the Project will enable the Company to modernise water supply system to improve quality of water supplied to the residents of the City of Yakutsk and to improve energy efficiency of drinking water supply and wastewater treatment collection systems. The ESDD concluded that any adverse future environmental and social impacts resulting from the project implementation will be temporary, and limited to the Company’s operational and project construction/modernisation sites. An Environmental and Social Action Plan (ESAP) will be prepared for the project. The ESAP requires the Company to further develop, improve and implement its EHSS management system; obtain the necessary permits; carry out public disclosure in line with national requirements; introduce efficient construction and maintenance contractors' EHSS management and performance monitoring practices; and implement a Stakeholder Engagement Plan and a grievance mechanism. The Company will be required to provide the Bank with annual environmental and social reports, including updates on the implementation of project and the ESAP in compliance with EBRD PRs. Pre-signing Post signing