The EBRD is considering a senior loan to Volzhski Vodokanal, a municipal water services company under a financial guarantee of Volzhski City for the purposes of co-financing a priority investment programme on rehabilitation and upgrade of water supply and wastewater treatment facilities.
Transition impact:
(i) Improvement of municipal services and operational efficiencies of Volzhski Vodokanall
(ii) Commercialisation of municipal services (target is to reach full cost recovery for residential users)
(iii) Gradual elimination of current level of cross-subsidisation, step-by-step adjustment to tariff levels;
(iv) Improved management and skills transfer for Volzhki Vodokanal
Municipal Enterprise Volzhski Vodokanal fully owned by the municipality of Volzhski City that would be providing full financial guarantee for the project.
EBRD finance:
Senior loan of RUB 360 mln to finance reconstruction of the waste water treatment plant.
Total project cost:
RUB 450 million, including RUB 90 million co-financing from local sources. |
