The EBRD is considering to provide a senior loan of up to RUB 400 million (~ EUR 11.4 million) to the Municipal Unitary Enterprise “Petropavlovsk Gorvodokanal” (the “Company”), the water utility in Petropavlovsk-Kamchatsky (the “City”) in the Russian Far East to finance a priority investment programme. The loan will be supported by a guarantee from the City.
The loan proceeds will be used to finance PIP focusing on:
(i) rehabilitation and upgrade of water pumping stations with the objective to improve energy efficiency of operations
(ii) upgrade of wastewater treatment facilities to improve reliability and efficiency;
(iii) rehabilitation of water distribution networks to reduce water losses; and
(iv) other auxiliary investments.
Transition impact comes from:
(i) Commercialisation
The operation will result in much needed efficiency improvement in the provision of municipal water services to the city residents and will support institutional strengthening;
(ii) Tariff reform
The operation will facilitate a comprehensive tariff reform based on full cost recovery, and
(iii) Transfer of skills and standards
Procurement and decision making standards will be improved through application of the Bank’s Procurement Policies and Rules. Skills and knowledge transfer also occurs during preparation of the Technical Feasibility Study and subsequent project technical implementation.
Petropavlovsk Gorvodokanal is a municipal unitary enterprise fully owned by the City providing water supply and waste water services to Petropavlovsk and a number of neighbouring settlements: Avacha, Zaozerny, Khalaktyrka, Zavoyko, Dolinovka, and Chapaevka, which are also included in City limits. The Company is servicing 196 thousand residents, heat supply organisations, and other consumers.
EBRD finance: Senior loan to the Company, of up to RUB 400 Million (equivalent of approximately ˆ 11.4 million) under a guarantee of the City.
Total project cost: Total Project cost (Priority Investment Program): RUB 600 million (~ EUR 17.1 million). |
