Project description
and objectives:
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The proposed project involves a loan to the municipal water and wastewater
utility of the Communal Water and Wastewater Management Utility of the South
Coast of the Crimea (the “Company”), owned by the Autonomous Republic of
Crimea in Ukraine. 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 of Yalta and a number of smaller
municipalities along the south coast called “Great Yalta”, the most famous
resort area in the Crimea. The investments are expected to contribute
significantly to decreasing the level of polluting discharges into the Black
Sea.
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Transition
impact:
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The proposed project will have an impact on the transition process through:
(i) corporatisation and commercialisation of the Company
(ii) billing according to actual consumption;
(iii) transfer of skills during the implementation phase including the
procurement, design, installation and contracts supervision in accordance to
the best available international engineering practice.
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The client:
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The borrower will be the Communal Water and Wastewater Management Utility of
the South Coast of the Crimea.
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EBRD
finance:
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A senior loan of up to EUR 6 million to the Company.
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Total project cost:
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Equivalent to EUR 8 million.
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Environmental impact:
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Environmental classification and rationale
The EBRD has classified the project B/1, requiring an Environmental
Audit/Review of the key operating assets to be undertaken and an Environmental
Analysis to assess the potential environmental impacts of the priority
investments. The prioritisation of the investment programme should take into
consideration environmental issues.
The project would improve the quality and efficiency of drinking water supply
and wastewater collection and treatment services in the City of Yalta and a
number of smaller municipalities along the south coast of the Crimean
peninsula. The operation would also support the achievement of important
environmental objectives in the Black Sea area by improving water and
wastewater management. The project would be structured in accordance with
Ukrainian and EU environmental standards that would be directly applicable to
the project.
The Company will, together with the project implementation unit and with a
help of a reputable international consultant, prepare an Environmental
Management Plan (EMP) guiding the Company and the Republic towards achieving
wastewater services compliant with international standards. The EMP will be
implemented within a timeframe acceptable to the Bank and other parties
involved with an intention to protect the Black Sea waters from further
pollution.
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Technical
cooperation:
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It is foreseen that the proposed project would include further technical
cooperation support:
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Update of the Technical Feasibility Study, prepared by COWI in 2001. Funding
has been approved by Denmark.
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Financial Due Diligence and IFRS Audit of the Company. Funding to be
identified. Environmental Management Plan (the “EMP”) estimated at EUR 50,000
envisaged to be financed bilaterally by the EU DABLAS facility for the Black
Sea area;
-
Municipal Development Programme (the “MDP”) for the Republic and the City of
Yalta to advise on tariff setting through regulatory advice to the Republic,
where the options for non-sovereign lending to the Republic and the secondary
cities of Simpheropol, Sebastopol, Eupatoria, Kerch and Theodosia will be
further reviewed, estimated at EUR 300,000
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Grzegorz Gajda, Operation Leader: gajdag@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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