Archangelsk Municipal Water Services

The Archangelsk Region is situated in North-Western Russia on the waters of the White Sea, the Kara Sea and the Barents Sea. It benefits from rich natural resources and a diversified industrial base but its infrastructure is suffering from underinvestment and insufficient budgets for maintenance leading to environmental and health concerns.

One of the Region’s priorities is to improve the capital’s water and wastewater infrastructure but the task proves challenging due to the lack of long-term financing from local banks and the current tariffs, which cannot sustain the investment needed.
The EBRD was approached for a loan to finance modernisation of municipal water and wastewater infrastructure but the affordability constrains limited loan funded capita expenditure for extension and upgrade of assets to the required Russian and EU environmental standards. For this purpose the NDEP co-financed a grant of EUR 7.30 million for capital investments and a grant of EUR 0.9 million for TC components.

Environmental Benefits

  • The project reduces public health hazards through improved water supply.
  • The environmental impact on the Northern Dvina River and the Brents Sea basin is lessened through a reduction of waste water overflows and improved sewage collectors and networks.
  • The operation would also result in considerable energy savings.
  • Further environmental benefits are associated with improved sustainability and cash generation as these are pre-conditions for any significant future investments required to rehabilitate and upgrade the environmental infrastructure.

At a glance

Sector:
Water and wastewater treatment
Client:
Archangelsk Vodokanal
Grant agreement signed:
11-02-2013
Project status:
Nearing completion
Implementing IFI:
EBRD

Financing

National Funds

  • Local Funds
  • €6,100,000

IFI Loans

  • EBRD
  • €10,000,000

NDEP Grant

  • Investment
  • €7,300,000

NDEP Grant

  • TC
  • €900,000

Other Grants

  • Luxembourg
  • €200,000

Other Grants

  • SIDA
  • €600,000

Other Grants

  • DFID
  • €200,000

Other Grants

  • Finland
  • €230,000
  • Total
  • €25,530,000

Contact

  • Jane Kieran
  • EBRD
  • One Exchange Square
    London
    EC2A 2JN
  • Tel: +44 20 7338 6843
  • Email: kieranj@ebrd.com