Kyzylorda (the “City”), with a population of over 250,000 inhabitants, has 541 km of water supply network that includes water mains, district distributions and yard distributions. About 69 per cent of the City’s population is connected to the centralized water supply system. The network’s average depreciation ratio is currently about 70 per cent. This is a major factor causing a high level of technical losses of over 27 per cent based on the estimates made according to national standards. In general, the current water supply system is characterised by the low efficiency of the pumping equipment, overflowing of wells, high power consumption and frequent leakages in the transmission and distribution network.
The sewerage network of 308 km is connected to a wastewater treatment plant (WWTP) with a daily capacity of 70,000 m3. Unlike the water supply network, it covers only about 53 per cent of the City’s population, as a significant number of private residential houses are not connected. At present, only up to 43 per cent of the nominal capacity of the WWTP is utilised. The sewerage system is characterised by heavy power consumption, inefficient pumping equipment, absence of metering and a lack of pre-treatment facilities at industrial facilities. No major investments have been made in the system over the last decades, which results in high clogging rates, network failures and inadequate wastewater treatment (4 breakdowns per km of the network in 2013), hence posing a risk to the environment and the population.
In December 2014, European Bank for Reconstruction and Development (“EBRD”) and the Company entered into a loan agreement to finance the rehabilitation and upgrade of the water supply and wastewater management system (the “Project”) in the city of Kyzylorda (the “City”). The project is supported by the City and Oblast Akimats.
In parallel with the hard investments, the Project will contribute to the development and institutional strengthening of the Company with respect to procurement, corporatisation, credit worthiness enhancement, and an improvement of the environmental situation in the City.
The aim of technical assistance assignment of Corporate Solutions (UK) and BDC Consulting KZ is to support the Company, and later the private management company (the Manager – to be selected during the Project implementation period), operating under the terms of a Public Service Management Contract (PSMC) to improve the Company’s commercial standing, service and environmental, and social performance.
Besides, the objectives of the technical assistance project are as follows:
- Review and introduction, including tender preparation, evaluation of tenders and contracting of a performance based PSMC between the Company, the Akimat and a private operator with the aim to advance the management performance for more cost effective services with less energy waste. The draft PSMC has been developed by the Project Feasibility Study consultant and will be available to the Consultant upon signing the consultancy services contract.
- Development and implementation of a Financial and Operational Performance Improvement Programme (“FOPIP”) for the Company in a close co-operation with the Manager.
- In a close co-operation with the Manager, development and adoption of a medium-term focused Corporate Development Plan for the Company and to improve its corporate planning capacity to assist its ongoing transition towards a self-sustaining entity and commercial operations, as well as implementing the Environmental and Social Action Plan (“ESAP”) developed for the Company.
- In a close co-operation with the Manager, development and introduction of a Management Information System (“MIS”).
- In a close co-operation with the Manager, development and implementation of the Stakeholder Participation Programme (“SPP”) aimed at increasing public participation in the provision of water and wastewater services (service quality, rehabilitation activities, tariffs integrating poverty and social issues) and raising public awareness on issues related to the project implementation.