The cities of Ust-Kamenogorsk (335 thousand people) and Semey (344 thousand people) (the “Cities”) are the two largest cities in the East-Kazakhstan Oblast, with the former being the region’s capital. Together the Cities are home to about 50 per cent of the region’s population. Proper utilisation and treatment of waste is becoming very important, as each city generates around 100,000 tonnes of waste per year. The landfills in the Cities have been in operation since the 1960s with no significant modernisation. Moreover, these sites are working at or near maximum capacity and approaching the end of their lifetime. Closure of the existing sites and construction of new sanitary landfills complying with the country’s Ecological Code and best international standards (including the EU Directive 1999/31/EC on the landfill of waste) must be undertaken to deal with the pressing environmental concerns.
Significant improvements to the solid waste management (“SWM”) system are also strongly required. Currently, the generated municipal solid waste (“MSW”) is not collected separately from households and is simply dumped at landfills. However, from January 2019, Kazakhstan’s Ecological Code will stipulate that valuable materials (recyclables) such as paper, glass, and plastics should be separately collected and recycled. Therefore the introduction of sorting and processing facilities is the top priority for the Cities.
In light of the above, the Akimat of Eastern Kazakhstan Oblast (the “Oblast Akimat”), the Akimat of Ust-Kamenogorsk City (the “Ust-Kamenogorsk City Akimat”), the Akimat of Semey City (the “Semey City Akimat”) have approached the European Bank for Reconstruction and Development (the “Bank” or the “EBRD”) with a request to assess the possibility of financing modernization of the SWM systems in the city of Ust-Kamenogorsk and the city of Semey (separately for each of the Cities – the “Project”). It is expected that the EBRD finance will be provided in form of a loan to (i) a municipal company fully owned by the Ust-Kamenogorsk City Akimat for implementation of the Project in the city of Ust-Kamenogorsk and (b) a municipal company fully owned by the Semey City Akimat for implementation of the Project in the city of Semey (hereinafter “the Company” means a municipal company in either the city of Ust-Kamenogorsk or the city of Semey as appropriate).
The Bank contracted GWCC-INTERIVAL ZT GmbH (Austria) and BDC Consulting KZ to conduct a comprehensive feasibility study (“FS”), to prepare a bankable Project and to develop a priority investment programme (the “PIP”) and evaluate its benefits, including assessing the environmental and social feasibility for each of the Cities (the “Assignment”). are developing a feasibility study and justification of investment projects.