The EBRD is considering financing of construction, rehabilitation, upgrade of boilers and distribution network (pipes) in the Lomonosov municipal district (the “Municipality”) within the Leningrad region. The priority investments to be financed by EBRD will be defined by consultants in a feasibility study.
Transition impact is expected to be achieved through:
* Introduction of transition related performance indicators, to be identified during due diligence;
* Skills and knowledge transfer during the Corporate Development Support Programme and training for the Project Implementation Unit;
* Cost restructuring (demonstration effect);
* Introduction of a service agreement to further commercialise the operations of the Operating Company;
* Development and implementation of an Environmental and Social Action Plan (ESAP) which will significantly improve the Operating Company’s environmental management and overall performance.
The client:
* “LR TEK” LLC (the Operating Company), providing water, wastewater and district heating services to both residential and industrial customers in the Lomonosov municipal district within the Leningrad region and wholly owned by the Municipality
* “LEK” Jsc (the Company), holding water, wastewater and district heating assets operated and leased by the Operating Company and wholly owned by the Municipality;
EBRD finance:
Senior loan of up to RUB 900 million (equivalent to ca EUR 20 million) to the Operating Company, backed by a financial guarantee from the Company and the Municipality. The loan is proposed to be co-financed by a capital grant from the Northern Dimension Environmental Partnership (“NDEP”).
Total project cost:
Up to RUB 1 495 million. |
