Komi Syktyvkar Municipal Water Services Improvement

The Republic of Komi, a priority region of the NDEP, is situated in North-Western Russia by the large rivers of Northern Dvina and Pechora which flow into the Barents Sea Basin.
Its municipal infrastructure is obsolete, inefficient and is the cause of health and environmental concerns. To improve the water and wastewater infrastructure in its cities of Syktyvkar and Vorkuta the Republic has approached the EBRD for loans to finance the modernisation of municipal water infrastructure as there is a lack of long-term financing from local banks in Russia. The affordability constrains limit loan funded capital expenditure for extension and upgrade of assets to the required Russian and EU environmental standards. In order to alleviate such affordability constraints, the NDEP Support Fund has provided an investment co-financing grant of EUR 5 million for capital investments and a grant of EUR 0.9 million for technical co-operation. The technical co-operation will cover design, engineering, procurement and contracts supervision.

The main objective of the Republic, the Cities and the Companies, in respect of water and wastewater infrastructure and services, is to achieve sustainability in accordance with Russian and EU regulations. The Project will constitute a first step of a long-term capital investment programme that will focus on:

  • Rehabilitation of municipal water treatment facilities and water
    distribution networks;
  • Upgrade of the municipal wastewater treatment facilities,
    modernisation and extension of wastewater network and collectors in
    view of eliminating direct discharges of untreated wastewater;
  • Improvement of service standards and strengthening of the
    operational performance of the Companies;
  • Financial and operational restructuring of the Companies and the
    implementation of a tariff setting policy, which will enhance the
    financial standing of the Companies;
  • Institutional support through Corporate Development Support
    Programme, Creditworthiness Enhancement Programme and Project
    Implementation Support.

Gallery

At a glance

Sector:
Water and wastewater treatment
Client:
Syktyvkar Vodokanal and Vorkuta Teplovodokanal
Grant agreement signed:
19-11-2004
Project status:
Nearing completion
Implementing IFI:
EBRD

Financing

National Funds

  • Vodokanal
  • €7,430,000

IFI Loans

  • EBRD
  • €15,000,000

NDEP Grant

  • Investment
  • €5,000,000

NDEP Grant

  • TC
  • €1,035,000

Other Grants

  • Sweden
  • €500,000

Other Grants

  • Canada
  • €600,000

Other Grants

  • EU
  • €300,000

Other Grants

  • Finland
  • €330,000
  • Total
  • €30,195,000

Contact

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