The European Bank for Reconstruction and Development (EBRD) has approved a sovereign loan of 35 million euros for the reconstruction of water supply, sanitation and stormwater management network in the city of Ganja, Report informs referring to the EBRD.
The total project cost is 410 million euros.
The financing will be provided in several tranches and co-financed by an investment grant from an international donor.
The Project is proposed as a follow-on investment under the Green Cities 3 Window 2.
The Project will promote the Green transition quality by improving water supply services and reducing water losses in Ganja. The Project will also support the Well-governed transition quality through the development and implementation of a tailored Governance Action Plan ("GAP") and Financial and Operational Performance Improvement Program ("FOPIP").
Upon the Project completion it is expected that part of city of Ganja will be covered by uninterrupted water supply and wastewater sanitation services, and flood risks will be decreased by introducing a stormwater management system.
The Project and the wider PIP will improve water and wastewater services in Ganja region and improve its resilience to climate change risks through enhancing stormwater management. The implementation of the PIP components will have positive Environmental and Social ("E&S") impact on the city, provide a more reliable supply of clean drinking water, prevent water losses, reduce pollution from untreated wastewater discharges into Ganja River, and improve health and well-being of the population. The Project is a follow-on investment under Ganja's GCAP to address the priority environmental challenges in water supply and sanitation.
There are no sensitive protected areas or critical habitats within or in the close vicinity of the proposed reservoir sites and networks planned under the Project and the wider PIP. The existing reservoirs, networks and facilities are located in a highly urbanised area of Ganja. No areas of archaeological or cultural significance would be affected, however precautions will need to be taken during the construction works including a chance finds procedure. The Project and the wider PIP do not require any land acquisition, physical resettlement of households or businesses or economic displacement, and this will be further checked during the design review. In case of any significant changes and if the Project and the wider PIP would require establishment and enforcement of the Sanitary Protection Zone, resulting in involuntary land acquisition and resettlement, then the Water Agency will prepare, disclose, approve and implement a Resettlement Plan compliant with EBRD PR5 requirements.
Given the scale of the construction works, specific precautions will need to be taken by the contractors, including development of the Construction E&S Management Plan. Relevant E&S requirements will need to be included in the tenders and contracts for the contractors.
The borrower of the loan is the Ministry of Finance of Azerbaijan, and the beneficiary is the State Water Resources Agency.