Yuzhno-Sakhalinsk District Heating Project

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Translated version of this PSD: Russian The EBRD is considering to extend a senior loan of up to RUB 450 million (EUR 11.3 million) to OJSC Sakhalinskaya Kommunalnaya Kompaniya (the “Company”) for rehabilitation of district heating infrastructure in the City of Yuzhno-Sakhalinsk (the “City”) in the Russian Far East. Transition impact is expected to be achieved through the: OJSC Sakhalinskaya Kommunalnaya Kompaniya is a district heating, water and wastewater utility, 51.81 per cent owned by the City and 48.19 per cent by JSC SakhalinEnergo, a regional power generating company ultimately owned by the Russian Federation. Senior corporate loan to the Company of up to RUB 450 million (EUR 11.3 million), guaranteed by the City. Up to RUB 600 million (EUR 15 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. The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Company’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Company’s ability to carry out the Project in compliance with the Bank’s Performance Requirements. An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. Information on environmental and social performance and a summary of the agreed ESAP will be released to stakeholders. This PSD will be updated when the results of due diligence are known. The following Technical Cooperation will support the project: Pre-signing Post-signing