Uzbekistan: Water Supply and Sanitation Services Investment Program - Tranche 4

Sovereign Project | 42489-053

Summary

The current sewerage system in Fergana and Margilan is also used by Tashlak and nearby districts. There is one treatment plant covering these cities which was built in the 1970s and because of the aging infrastructure and inadequate maintenance the sewage treatment facility is only operating at 20% of its designed capacity. The treated sewage has high levels of pollutants. Sewage is discharged into the nearby river when the sewage treatment facility is non-operational. Due to frequent sewer breakage, the surrounding streets and land are highly polluted. Where expansion has occurred in the cities, these areas have not been covered by the sewerage system.

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Project Name Water Supply and Sanitation Services Investment Program - Tranche 4
Project Number 42489-053
Country Uzbekistan
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3064-UZB: MFF-Water Supply and Sanitation Services Investment Program Tranche 4
Asian Development Fund US$ 42.00 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 water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The current sewerage system in Fergana and Margilan is also used by Tashlak and nearby districts. There is one treatment plant covering these cities which was built in the 1970s and because of the aging infrastructure and inadequate maintenance the sewage treatment facility is only operating at 20% of its designed capacity. The treated sewage has high levels of pollutants. Sewage is discharged into the nearby river when the sewage treatment facility is non-operational. Due to frequent sewer breakage, the surrounding streets and land are highly polluted. Where expansion has occurred in the cities, these areas have not been covered by the sewerage system.

The government has decentralized many WSS services to devolve greater ownership and responsibility to local level, but the success at the level of local water enterprises is limited, with little accountability and incentives to improve services. Vodokanal staff have had limited opportunities for upgrading their skills. Consumption of electricity is high. Improvements are required in O&M procedures, system maintenance, customer relations, collection rate, performance monitoring, and benchmarking systems.

On 11 February 2013, the government submitted a periodic financing request (PFR) to ADB for Tranche 4, to finance rehabilitation and expansion of the sewerage system in Fergana and Margilan cities, and capacity development and project implementation support.

Project Rationale and Linkage to Country/Regional Strategy

The current sewerage system in Fergana and Margilan, which is also used by Tashlak city and nearby districts, was built in the 1970s. Because of aging infrastructure and inadequate maintenance, the remaining rates of main pollutants are as high as 14-54% and the sewage treatment facility is operating at 20% of its designed capacity. Sewage is discharged to nearby river when the sewage treatment facility does not function. Due to frequent breakage of the sewers, street and land are highly polluted. A number of sewers are overloaded. Most extension areas of the cities have not been covered by the sewerage system.

The government has decentralized many WSS services to devolve greater ownership and responsibility to local level, but the success at the level of local water enterprises (vodokanals) is limited, with little accountability and incentives to improve services. Vodokanal staff have had limited opportunities for upgrading their skills. Consumption of electricity is high. There are many areas to be improved, such as O&M procedures, system maintenance, customer relations, collection rate, performance monitoring, and benchmarking systems.

Impact Improved living standards, environment, and public health in Fergana, Margilan, and Tashlak cities and the surrounding districts
Project Outcome
Description of Outcome Safe, reliable, and sustainable sewerage services in Fergana, Margilan, and Tashlak cities and the surrounding districts
Progress Toward Outcome Loan declared effective on 5 September 2014. Too early to assess outcome.
Implementation Progress
Description of Project Outputs

1.Rehabilitation and expansion of sewerage management system in Fergana and Margilan cities

2. Management structure and capacity for vodokanals improved, and implementation effectively supported

Status of Implementation Progress (Outputs, Activities, and Issues) Detailed design and engineering supervision consultant commenced services in January 2015. First civil works contract expected in Q1 2016. Procurement of equipment via NCB ongoing.
Geographical Location Fergana
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Tranche 4 is categorized as a B project for environment in accordance with ADB s Safeguard Policy Statement (SPS) (2009). The IEE report was prepared by UCSA and disclosed on the ADB website on 14 February 2013. The IEE report includes the findings from the environmental audit compliance review for the existing facilities, which was carried out to comply with ADB requirements. The IEE findings indicated that most environmental impacts will occur during the construction period. The environmental management plan (EMP), which covers all required mitigation measures for minimizing environmental impacts, including measures to improve environmental performance based on audit result, was also prepared. The contractor will be responsible for implementing the EMP to mitigate impacts associated with construction activities. The PPMU environmental specialist will continue to be responsible for guiding and monitoring the implementation of the EMP. The environmental monitoring report will be submitted to ADB annually and will be disclosed on ADB s website.
Involuntary Resettlement Social Safeguards. Tranche 4 is categorized as C in accordance with the SPS for involuntary resettlement. The due diligence on land acquisition also confirms that Tranche 4 does not involve any land acquisition. The pipelines will be placed along the roads, and all civil works confined to the existing road boundaries. Tranche 4 also has no adverse impact on indigenous peoples. None of the ethnic groups in the project areas maintain cultural and social identities separate from the mainstream Uzbekistan society that would classify them as indigenous peoples. Therefore, Tranche 4 is categorized as C project for indigenous peoples in accordance with the SPS.
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation and focused discussions were conducted with stakeholders including the local population, UCSA, local vodokanal staff and khokimiyat officials in the conduct of poverty and social analysis. Consultation with mahallas, neighborhood groups, schools and vodokanals in the project areas will be continued, but as part of the ongoing Tranche 2 of the MFF. Issues related to sanitation/sewerage will be included in the consultation.
During Project Implementation The major involvement of the of the CSO's are formalized and explained thoroughly in the GAP. It includes consultation and participation of the population in the projet areas and enables them to participate in the project implementation, as well as provide feedback on the quality of services.
Business Opportunities
Consulting Services All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2013, as amended from time to time). Before the start of any procurement, ADB and the government will review the public procurement laws of the central and state governments to ensure consistency with ADB's Procurement Guidelines.
Procurement All advance contracting and retroactive financing will be undertaken in conformity with ADB's Procurement Guidelines (2013, as amended from time to time) and ADB's Guidelines on the Use of Consultants (2013, as amended from time to time). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. Retroactive financing has been requested for the civil works contract and consultancy contracts mentioned above. Retroactive financing of up to 20% of the respective loan will be applied only for eligible expenditures incurred before the loan effectiveness but not earlier than 12 months before the loan signing. The borrower and UCSA have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the project.
Responsible ADB Officer Hao Zhang
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Uzbekistan Communal Serv's Agency"Uzkommunkhizmat"PMU_2466@RAMBLER.RU1, Niyozbek Yuli Str.
Tashkent 100035
Republic of Uzbekistan
Timetable
Concept Clearance -
Fact Finding -
MRM 13 Jun 2013
Approval 25 Nov 2013
Last Review Mission -
Last PDS Update 25 Mar 2015

Loan 3064-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
25 Nov 2013 27 Feb 2014 05 Sep 2014 31 Mar 2018 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 52.50 Cumulative Contract Awards
ADB 42.00 25 Nov 2013 1.17 0.00 3%
Counterpart 10.50 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2013 0.66 0.00 2%

Evaluation Documents

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