This project is still under review by the EWS. Project information and/or project analysis may be incomplete.
Naryn Water Sub-Project (EBRD-45358)

Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 3, 2014
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ EBRD website

Disclosed by Bank Jun 3, 2014


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.
TRANSLATED VERSION OF THIS PSD:RUSSIAN Russian PROJECT DESCRIPTION The EBRD is considering supporting the Naryn Water Sub-Project. The EBRD would extend a sovereign loan of up to EUR2 million to the Kyrgyz Republic, to be transferred to Naryn City for the benefit of the Naryn Water Company for improvement of water supply and selected wastewater services.The EBRD will also seek an investment grant from an international donor of EUR3 million to facilitate implementation of the sub-project which will address urgently needed water and wastewater infrastructure rehabilitation needs.This support will be extended under the existing EBRD sovereign framework of up to EUR20 million, established by the Bank to co-finance with international donors priority water and wastewater rehabilitation sub-projects across the Kyrgyz Republic. The framework envisages sovereign loans that would be transferred to the cities for the benefit of the water companies involved and would address urgently needed water and wastewater infrastructure rehabilitation needs.The overall objectives of this sub-project are to: (a) rehabilitate the water supply and selected wastewater improvements; and (b) improve financial and operational management. TRANSITION IMPACT Transition Impact of the sub-project would be: THE CLIENT Government of the Kyrgyz Republic, transferred to Naryn City for the benefit of the Naryn Water Company. EBRD FINANCE Sovereign loan of up to EUR2.0 million to the Kyrgyz Republic, transferred to Naryn City for the benefit of the Naryn Water Company. PROJECT COST The total sub-project cost is EUR5.9 million including technical cooperation. The sub-project will be co-financed by an investment grant from an international donor. ENVIRONMENTAL IMPACT The sub-project has been categorised B under the EBRD Environmental and Social Policy. An Environmental and Social Review of the Water Company's current Environmental Health and Safety, and Social (EHSS) management practices, operations and facilities, and an Environmental and Social Analysis of the proposed priority investment programme has been carried out as part of the Feasibility Study by independent consultants. Based on the findings of the Feasibility Study, the implementation of the proposed priority investment project is expected to significantly improve efficiency, reliability and quality of the water supply and wastewater collection in Naryn, thus contributing to the provision of access to safe drinking water, prevention of ground and watercourses pollution and improvement of public health. The priority investment programme components will mostly involve rehabilitation of water and wastewater systems. The implementation of the priority investment programme involves construction works that will result in limited, localised and short-term adverse environmental impacts, which will be mitigated or prevented by adhering to good construction practice.The results of due diligence investigations has shown that the Water Company has weak EHSS management capabilities and underdeveloped EHSS management systems, and that their current occupational health and safety and stakeholder engagement practices require further improvement to meet EBRD's Performance Requirements (PRs).The Water Company's facilities are currently in poor operating condition resulting in unreliable and low quality water supply, high water losses and energy consumption. Currently only a limited part of the city is served by a piped sewerage network and large scale extensions will be necessary to reach the long term objectives. The existing wastewater treatment plant is operating at around 30 per cent treatment efficiency and the discharge to Naryn River is non-compliant with local regulatory and EU requirements.The results of the due diligence indicate that the reliability and quality of the drinking water supply will be significantly improved, however additional long-term investments into water networks would be required to bring it in full compliance with the EU standards. The priority investment plan will include limited expansion of the sewer network renovation of a small wastewater treatment plant which will serve a limited area. Further expansion and renovation of wastewater infrastructure needs to be included in the long term investment programme due to affordability reasons. At this time the financing for the long-term investment programme from the Company's own revenues cannot be confirmed and no potential sources of external funding have been identified. Therefore, on account of constraints arising from affordability and limited financial resources, derogation will be sought from the EBRD's Environmental and Social Policy.The results of the Environmental and Social Due Diligence (ESDD) show that the sub-project will have a significant positive impact on public health and the environment despite the sub-project not being able to achieve full EU compliance in the short term. The human health implications of the shortfalls from EU standards are assessed to be minor compared to the benefits of the priority investment programme implementation resulting in safer and more reliable water supply to the local population. However, untreated wastewater discharges will remain in the short term, and although the Naryn river has a high assimilative capacity, these discharges will continue to present health risks to the local communities. Awareness raising programmes to prevent risks of water borne diseases will be developed and implemented as part of mitigation plans.An Environmental and Social Action Plan (ESAP) has been developed to bring the Water Company into compliance with national regulations and to meet EBRD's PRs, where financially feasible. A Stakeholder Engagement Plan is also under development for the Naryn Water Company. TECHNICAL COOPERATION The following technical co-operation (TC) assignments are envisaged as part of this sub-project:
Investment Description
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Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
ACCOUNTABILITY MECHANISM OF EBRD The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.

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