Project description
and objectives:
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The proposed project involves a loan to the municipal water and wastewater
treatment utility of the City of Vologda. The proceeds of the loan would be
used to finance priority capital investments to improve the municipal water
and wastewater infrastructure and services in the City, which will contribute
significantly to decreasing the level of polluting discharges into the Vologda
River and the Beloye Sea basin and improved drinking water and decreased
pollution in Vologda. The Project components include:
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Investment programme: modernization/ reconstruction of the water treatment
facilities for drinking water in the city of Vologda (EBRD loan); in addition
upgrade the wastewater treatment system (NDEP grant).
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Institutional support: Improvement of service standards and tariff setting
policies, improvement of financial and operational performance of the
Vologdagorvodokanal, as well as management support through the project
implementation and supporting TCs.
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Transition
impact:
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(i) Improvement of municipal services and operational efficiencies of
Vologdagorvodokanal
(ii) Commercialisation of municipal services (target is to reach full cost
recovery for residential users, motivated by the improvement of water quality
and services);
(iii) Lowering current level of cross-subsidisation, step-by-step adjustment
to tariff levels;
(iv) Improved management and skills transfer for VGVK.
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The client:
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The borrower will be the municipal water and wastewater utility
(tVologdagorvodokanal) of the City of Vologda under guarantee of the Vologda
region
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EBRD
finance:
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A senior loan of RUB 367 million to Vologdagorvodokanal.
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Total project cost:
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Investment program amounted to RUB 550 million.
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Environmental impact:
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The project has been classified B/1.
This project presents significant environmental opportunities regarding
improving the quality of Vologda city drinking water and the quality of
effluent, thereby reducing the threat to public health and reducing pollution
of the Vologda River. The environmental due diligence will assess the ability
of the project to bring the facilities into compliance with applicable Russian
Federation and EU environmental standards. It will also assess possible
environmental liabilities associated with current potable water supply system
both in summer and winter, as well as wastewater collection and treatment
facilities.
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Technical
cooperation:
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The project has benefited from the following technical cooperation programmes:
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Technical Feasibility Study including the development of the Environmental
Action Plan, financed by the Finnish Ministry of Trade and Industry.
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IFRS Auditof Vologdagorvodokanal, funded by the European Commission.
It is foreseen that the proposed project would include further technical
cooperation support:
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Project Engineer for assistance to PIU in procurement, design and contracts
supervision. Funding to be identified.
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Corporate Development Support Program to enhance the company’s financial,
managerial and operational performance. Funding to be identified.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Svetlana Radchenko, Operation Leader: radchens@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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