Kyrgyz Republic: Issyk-Kul Sustainable Development Project

Sovereign Project | 41548-013

Summary

The Issyk Kul Sustainable Development Project (the Project) is the first phase in a longer-term initiative by the Asian Development Bank (ADB) to support environmental management and to improve urban service delivery in the Issyk-Kul Oblast. ADB and government collaboration in Issyk-Kul will ensure that urban services interventions will increase access to potable water and safe sanitation, including use of proven technologies for treatment and disposal of solid and liquid waste. The Project will (i) improve urban infrastructure, including sewerage and sanitation, solid waste management, water supply, and community upgrading; and (ii) improve service delivery through better enterprise resource management.

The Project covers the cities of Balykchy, Cholpon-Ata, and Karakol. Its outputs are:

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Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Issyk-Kul Sustainable Development Project Oct 2013

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Project Name Issyk-Kul Sustainable Development Project
Project Number 41548-013
Country Kyrgyz Republic
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0163-KGZ: Issyk-Kul Sustainable Development Project
Asian Development Fund US$ 13.50 million
Loan 2556-KGZ: Issyk-Kul Sustainable Development Project
Asian Development Fund US$ 16.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The Issyk Kul Sustainable Development Project (the Project) is the first phase in a longer-term initiative by the Asian Development Bank (ADB) to support environmental management and to improve urban service delivery in the Issyk-Kul Oblast. ADB and government collaboration in Issyk-Kul will ensure that urban services interventions will increase access to potable water and safe sanitation, including use of proven technologies for treatment and disposal of solid and liquid waste. The Project will (i) improve urban infrastructure, including sewerage and sanitation, solid waste management, water supply, and community upgrading; and (ii) improve service delivery through better enterprise resource management.

The Project covers the cities of Balykchy, Cholpon-Ata, and Karakol. Its outputs are:

(i) replacing a 13.4-kilometer (km) sewer network (specifically addressing pumping mains to sewage treatment plants); rehabilitating pumping stations in Balykchy and Karakol; extending the sewer network by 12 km to uncovered areas in Karakol; and supplying relevant tools, equipment, and vehicles for sewer maintenance;

(ii) re-engineering 42.5 hectares of waste dumps into sanitary landfills, closing existing dumps in all three project cities, providing waste segregation and recyclable sorting equipment, and supplying vehicles and equipment for waste collection and transport;

(iii) installing 8,550 water meters, training vodokanal enterprises in meter reading and leak control, constructing a presedimentation treatment tank at the Karakol water headworks, replacing a 2 km corroded transmission main in Balykchy, and reconstructing 10 boreholes (with treatment, energy efficient pumps, storage, and protection facilities) in Balykchy and Cholpon-Ata;

(iv) providing in the three project cities, water and sanitation facilities in pre-schools, schools and health care organizations; and

(v) implementing an enterprise resource management component comprising a management information system, accounting and financial management, geographic information system, asset inventory and management, and institutional effectiveness program for cities, vodokanal enterprises and tazalyk enterprises.

Project Rationale and Linkage to Country/Regional Strategy

Lake Issyk-Kul ("warm lake" in Kyrgyz) is the world's second largest saline lake; a Ramsar site of globally significant biodiversity; and a United Nations Educational, Scientific and Cultural Organization (UNESCO)-designated biosphere reserve. The lake forms a significant part of Issyk-Kul Oblast and contributes to its economic growth by providing tourism opportunities. Attracting approximately 1 million tourists annually, equivalent to 70% of the country's annual tourist of 1.4 million persons, the lake is a major economic driver in the region.

Increasing tourism has resulted in the construction of many resorts that are now sprawled around the lake's northern shores. However, existing water supply and sanitation infrastructure, ncluding solid waste management, is decrepit, dysfunctional, and poorly maintained. Current infrastructure is unable to serve the high number of tourists, which exceeds the resident population by a factor of four. Excessive pressure on existing infrastructure is partially responsible for the lake's pollution.

The country development strategy, 2009 2011, emphasizes environmental sustainability. The Project, and its focus on protecting the lake, features under the strategy's investment project for the Issyk-Kul region. In February 2009, the Concept of Sustainable Development of the Ecological and Economic System of Issyk-Kul was passed through a presidential decree. Subsequently, the Government of Kyrgyz Republic passed a resolution in May 2009 that prioritizes implementation of the Project.

ADB-led investment and policy dialogue in the region will improve the infrastructure and quality of urban services, foster tourism, and preserve the lake's environment. Institutional, legal, and municipal finance assessments in Issyk-Kul will provide a suitable platform for developing ADB's urban services sector development strategy for Kyrgyz Republic. Development of performance-based service contracts through the Project will also improve opportunities for public private partnerships in the water supply and sanitation sector.

Impact Improved health of resident population in the Issy-Kul Oblast and environmental preservation of Issyk-Kul
Project Outcome
Description of Outcome Improved urban basic services comprising sewerage and sanitation, solid waste management, and water supply in the cities of Balykchy, Cholpon-Ata, and Karakol
Progress Toward Outcome Bidding for major civil works packages successfully completed. Majority of works contracts are in progress.
Implementation Progress
Description of Project Outputs

A. Infrastructure Improvement

Sewerage: 13.43 km of sewer lines replaced in Balykchy and Karakol, 12 km of new sewer lines laid in Karakol, and 6 pumping stations rehabilitated in Balykchy and Karakol

Solid waste management: 42.5 hectares of existing waste dumps reengineered into sanitary landfills in all three project cities and waste segregation and recyclable sorting units installed

Water Supply: 8,550 domestic water meters installed in three project cities, 2 km of water transmission pipeline replaced in Balykchy, presedimentation treatment tank at Karakol water headworks constructed, and 10 boreholes with treatment, energy efficient pumps, storage, and protection facilities constructed in Balykchy and Cholpon-Ata

Community Upgrading: Community water and sanitation facilities constructed

Part B: Enterprise Resource Management

Accounting systems developed for all cities, vodokanal enterprises, and tazalyk enterprise

GIS developed for each city and infrastructure assets mapped

Management capacity of vodokanal enterprises enhanced

Performance-based service contracts for water supply and sewerage awarded

Part C: Project Assistance Facility

IEC campaign effectively implemented, materials on hygiene and sanitation disseminated, and women developed as hygiene and sanitation advocates

Status of Implementation Progress (Outputs, Activities, and Issues)

A. Infrastructure Improvement

Outputs

Sewerage: Sewer line rehabilitated in Balykchy. Major sewer rehabilitation and new construction started in Karakol and Balykchy.

Solid Waste Management: Plans for landfills being finalized. Garbage trucks and containers delivered.

Water Supply: Procured machinery for Karakol, Balykchy and Cholpon Ata vodokanals. Boreholes in Balykchy complete. Construction of water transmission line in Balykchy has started. Meters procured.

Community Upgrading: Construction of school sanitation facilities in Balykchy is complete. Construction of school sanitation facilities in Cholpon-Ata and Karakol has started.

Activities

Sewerage: Procurement complete, construction started.

Solid Waste Management: Finalizing bidding documents for controlled landfills.

Water Supply: Procurement complete, construction started.

Community Upgrading: Procurement complete, construction ongoing.

Issues:

Water supply, sewerage and community upgrading: None.

Solid Waste Management: Obtaining final approval to proceed from State Agency for Environmental Protection and Forestry.

Part B: Enterprise Resource Management

Outputs:

Accounting systems developed: Work completed and systems are operational.

GIS developed: Work completed GIS system operational.

Enhanced Management capacity: MIS Consultant engaged. Work ongoing.

Performance-based service contracts awarded: Not yet due.

Activities:

MIS consultants developing plans for management improvements.

Issues:

None

Part C: Project Assistance Facility

Outputs:

PMO and PIO offices fully operational

Activities

Engineering Design: Ongoing.

Effective IEC campaign implemented: Ongoing.

Issues: None

Geographical Location Issyk-Kul Region (Balykchy, Cholpon-Ata, Karakol)
Safeguard Categories
Environment A
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The Project was classified as environmental category A under ADB's Environment Policy (2002) as its subcomponents are located in the Issyk Kul Biosphere Reserve, which includes several protected wetlands registered under the Ramsar Convention. As part of the project preparatory technical assistance an environmental impact assessment (EIA) was carried out for all subcomponents. Early in the environmental assessment process, relevant environment information was disclosed to likely affected people through stakeholder consultations, workshops, and focus group discussions. The summary EIA report in Russian was also disclosed by city governments and reviewed by SAEPF and its regional departments. News articles in local newspapers preceded the consultations, indicating the EIA content and availability with the city governments. Stakeholder comments from consultations were integrated into the Project. In accordance with ADB's Public Communications Policy (2005), the summary EIA was posted on the ADB website on 1 June 2009 to meet the 120-day disclosure requirement before Board consideration of the Project.

To ensure that the biosphere reserve is not affected, subcomponents have been suitably located. Location of sanitary landfills is critical. In Balykchy and Cholpon Ata, the project component sites are located in areas designated for improvement, and in Karakol, the project component site is in the transition zone.

An efficient, engineering design will mitigate any localized or temporary impacts. Impacts during operations will be mitigated through effective implementation of the environmental management plan. The following measures will mitigate key impacts.

Location. Buffer zones within and buffer strips with restricted development around sanitary landfill sites will mitigate moderate but permanent location impacts.

Construction. Good construction techniques, provision of standby equipment in case of power failures and disruptions, soil surface stabilization, and safe disposal of contaminated water and oil will mitigate moderate to severe impacts. The impacts are anticipated from groundwork and transport activities; exhaust, gas, oil, and fuel spills; and soil excavation and storage causing runoffs and soil-level alteration.

Seismic activity. Hydrogeological and geotechnical investigations will form the basis for designs, choice of materials, and construction methods to mitigate severe impacts through structural damage and sinking of foundations and soil.

Operations. Effective implementation of sludge management plans, occupational and safety plans, and emergency response plans will mitigate system operations impacts resulting from leaks, spillovers, and sludge disposal; windblown waste; gases emitted from landfills; and improper closure of existing dumps.

The state ecological expertise, complying with Kyrgyz Republic laws on environmental clearance, will be made mandatory before bidding. The independent ecological expertise will provide third-party quality assurance and ensure effective environmental management plan implementation; it will also address public grievances through the public ecological expertise process.

The environmental management and monitoring plan will be implemented by BRD and IDEP. IDEP will be directly responsible for mitigating and monitoring impacts during project design, construction, and operation. BRD will complement IDEP's activities through a parallel monitoring function and ensure that project activities comply with environmental regulations within the biosphere reserve. The Project will ensure both IDEP and BRD are adequately equipped and trained.The international environment specialist at the PIO will provide training to staff members on monitoring and mitigation activities and ensure that the plan is updated as required.

Involuntary Resettlement The Project will not have any land acquisition and resettlement impact as documented in due diligence reports prepared for each of the three project cities. The Project has chosen existing sites for siting bulk facilities and made all efforts to avoid land acquisition and resettlement impacts by choosing appropriate design options and by prioritizing rehabilitation and reconstruction of existing facilities. New construction, to the extent feasible, will be done on unused land already owned by the Government. The due diligence reports were prepared recognizing ADB s Policy on Involuntary Resettlement (1995) and applicable laws and regulations of Kyrgyz Republic.
Indigenous Peoples The Project is not expected to affect indigenous people as defined under ADB's Policy on Indigenous Peoples (1998). The project areas are fairly homogenous, with majority Kyrgyz and other ethnic minorities comprising Kazakhs, Russians, and Uzbeks. These ethnic groups do not differ in their needs or levels of water supply or sanitation services, and all will benefit from project activities.
Stakeholder Communication, Participation, and Consultation
During Project Design Stakeholder consultation workshops held in all three towns, with participation from government entities, media, individuals, NGOs and local buisnesses.
During Project Implementation NGOs are included in the tender evalaution committees.
Business Opportunities
Consulting Services Consultants will be selected and engaged in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended to date) using quality-and cost-based selection for firms ang government procedures acceptable to ADB for individuals. Simplified technical proposals or full technical proposals, as appropriate, will be required from firms. The EA will ensure that position-based terms of reference (for each expert) will be used when it invites shortlisted consultants. The PMO will appoint six individual specialists to support the PMO and PIO in overseeing consulting services. Three international specialists (40 person-months of water and sewerage, environmental management, and solid wste management strategy development) will provide third-party quality assurance on engineering designs and construction supervision, update the environmental impact assessment and accordingly, revise the environmental management plan, and develop a waste management strategy to reduce waste generation and disposal. Three domestic specialists (90 person-months of project performance monitoring, social and gender development, and procurement expertise) will assist the PIO.
Procurement The PMO will procure works, goods, and services in accordance with ADB's Procurement Guidelines (2007, as amended to date) based on the procurement plan. The procurement plan is for an 18-month period and will be updated annually by the EA. Civil works, equipment, and material will be procured through international competitive bidding (ICB) and ntional competitive bidding (NCB) procedures as appropriate. (i) Civil works includes rehabilitation of sewerage systems (two ICB contracts) water supply improvement (two ICB contracts), construction of sanitary landfills (ICB or NCB), and construction of community water and sanitation facilities (three NCB contracts). (ii) Goods include equipment and selected materials for vodokanal enterprises, tazalyk enterprises, and the PMO (two ICB contracts, one shopping), environmental monitoring equipment for IDEP and BRD (shopping) and waste collection and associated equipment (one ICB contract). ADB's shopping procedures will apply to off-the-shelf items and standard products costing the equivalent of $100,000 or less.
Responsible ADB Officer Hao Zhang
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Ministry of FinanceMirlan BaiganchokovPublic Debt Department Room 500
58 Erkindik Boulevard
Bishkek 720040, Kyrgzy Republic
Timetable
Concept Clearance 02 Jan 2009
Fact Finding 08 Jul 2009 to 01 Aug 2009
MRM 19 Aug 2009
Approval 30 Sep 2009
Last Review Mission -
PDS Creation Date 27 Jul 2009
Last PDS Update 24 Mar 2015

Grant 0163-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2009 05 Nov 2009 29 Jan 2010 30 Jun 2015 30 Jun 2016 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.50 Cumulative Contract Awards
ADB 13.50 30 Sep 2009 10.66 0.00 79%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2009 8.94 0.00 66%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory

Loan 2556-KGZ

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2009 05 Nov 2009 29 Jan 2010 30 Jun 2015 30 Jun 2016 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 24.00 Cumulative Contract Awards
ADB 16.50 30 Sep 2009 10.27 0.00 68%
Counterpart 7.50 Cumulative Disbursements
Cofinancing 0.00 30 Sep 2009 7.40 0.00 49%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - - - Satisfactory - Satisfactory
Title Document Type Document Date
Issyk-Kul Sustainable Development Project Procurement Plans Oct 2013
Issyk-Kul Sustainable Development Project Project/Program Administration Manual Jan 2010
Financing Agreement for Issyk-Kul Sustainable Development Project between Kyrgyz Republic and Asian Development Bank dated 05 November 2009 Financing Agreement Nov 2009
Issyk-Kul Sustainable Development Project Reports and Recommendations of the President Sep 2009
Проект Устойчивого Развития Иссык-Куля Reports and Recommendations of the President Sep 2009
Issyk-Kul Sustainable Development Project Gender Action Plans Sep 2009

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Issyk-Kul Sustainable Development Project: Environmental Monitoring Report (November 2013 - April 2014) Environmental Monitoring Reports Apr 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Improved Sanitary Facilities in Schools in Cholpon-Ata and Karakol Environmental Management Plans Mar 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - New and Refurbished Boreholes in Cholpon-Ata and Balykchy Environmental Management Plans Mar 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Karakol Sewerage Network Environmental Management Plans Mar 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Balykchy Water Transmission Main Environmental Management Plans Feb 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Balykchy Rising Main Sewer Environmental Management Plans Feb 2014
Issyk-Kul Sustainable Development Project: Environmental Management Plan - New and Refurbished Boreholes Environmental Management Plans May 2013
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Water Supply and Sewerage Networks Environmental Management Plans May 2013
Issyk-Kul Sustainable Development Project: Environmental Management Plan - Improved Sanitary Facilities in Schools Environmental Management Plans May 2013
Issyk-Kul Sustainable Development Project: Environmental Management and Monitoring Plan Environmental Management Plans Oct 2012
Issyk-Kul Sustainable Development Project Summary Environmental Impact Assessment Summary Environmental Impact Assessments May 2009
Проект устойчивого развития Иссык-кульского региона Summary Environmental Impact Assessments May 2009

Evaluation Documents

See also: Independent Evaluation

No documents found.


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