Kyrgyz Republic : Issyk-Kul Sustainable Development Project

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

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) management of 42.5 hectares of existing waste dumps improved to increase environmental safety and sites operation lifetime and solid waste collection service coverage increased in three project cities;

(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.

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.

Performance targets remain on track:

(i) Achieved. Population access to safe sanitation increased from 43.0 thousand in 2010 to 108.6 thousand person in 2016 (73.5 thousand citizens and schools pupil through sewage system, and 35.1 thousand citizens and school pupil through onsite sanitation).

And this is a pessimistic evaluation not included number of tourist equivalent population estimated as 52.5 thousand by the Consultant. Then it will be around 161.1 persons.

(ii) Close to be achieved. Capacity of solid waste collection improved through supply of collection vehicles (20) and 1200 collection bins and 3 mini-tractors. In 2016 Municipal solid waste collection cover 122.5 thousand populations including 70 thousand populations in 3 cities and tourist equivalent of 52.5 thousand people. Additional equipment for SW management was supplied in Q4 2017 that will enhance the services of Tazalyks and SWM at dump sites.

(iii) Improved reliability in water supply through rehabilitation of 6 boreholes in Balykchy and Cholpon-Ata and constructing 2 new ones. Rehabilitation work of 4 boreholes in Balykchy and 2 boreholes in Cholpon-Ata completed at the end of 2014. Construction of new borehole in Balykchy -1 and Cholpon-Ata -1 was completed in June 2017. Water Supply in Karakol receives Swiss Aid (SECO) and Project completed in July 2017 the construction of water intake facilities: rehabilitation of the water intake to supply 15000 m3/day, and sedimintation tank to supply 5000 m3/day, the commissioning of the sedimintation tank was posponed till the next high sediment season in 2018. The state commissioning is planned in June-July 2018.

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: Management of 42.5 hectares of existing waste dumps improved to increase environmental safety and sites operation lifetime and solid waste collection service coverage increased in three project cities.

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

The project is finacially closed in September 2018.

(i) Achieved.

Access to sewage network increased in 2016 to 73,500 population including 50,000 population and 23,500 school pupils. This does not include number of tourist equivalent population estimated as 52,500 people, and then it will be around 126,000 people.

(ii) Achieved. FSDC Consultant evaluated average daily sewage flows at 13,772 cum/day in 2014: in Balykchy 2.5 cum/day, in Cholpon-Ata 2.2 cum/day, Karakol 9.0 cum/day.

(iii) Achieved. Totally for 3 cities Vodokanals will be delivered 18 units of special vehicles and trucks, out of them 3 vehicles will be delivery in October 2017: 2 off-road vehicles for Cholpon-Ata and Balykchy, and 1 Cess pool emptying truck for Cholpon-Ata.

(iv) Achieved. 4 Sewage pumps stations (SPS) rehabilitated or newly constructed: - 3 SPS under rehabilitation works in Karakol completed in July 2017, and 1 new SPS is completed in Balykchy in April 30 2016.

(i) Close to be achieved.

In 2016 Municipal solid waste collection cover122.5 thousand populations including 70 thousand populations in 3 cities and tourist equivalent of 52.5 thousand people.

Totally supplied 1200 waste collection bins and 8 waste collection trucks for 3 cities. Additionally 12 SW collection trucks, by 4 per each city will be provide in October 2017 that will further increase coverage.

(ii) Achieved partly.

FSDC Consultant estimated at 106.1 metric ton of waste disposed daily in 3 cities in 2013: in Balykchy 16.1 ton/daily, Cholpon-Ata 25.9 ton/daily, and Karakol 64.1 ton/daily. Waste segregation and recyclable sorting units not installed.

(iii) Achieved.

41 special equipment and vehicles will be delivery to the 3 cities. 11 special vehicles were supplied, out of them 8 SW collection trucks and 3 mini-tractors: Karakol city 4 pc., Cholpon-Ata city 4 pc., and Balykchy city 3 pc. And 30 more samples of special vehicles, including following vehicles per each city: Landfill compactors 1unit,4 wheeled loader / backhoes 2 units, Dump trucks - 2 unit, Rear loading solid waste collection vehicles -4 units, and Bucket trucks 1 unit to Tazalyk enterprises will be provided in October-November 2017 for improvement operations on existing dump sites in 3 cities.

Bulk meters and 6250 domestic meters procured for Balykchy and Cholpon-Ata. Karakol under purview of Swiss Aid. Replacement of dual water main in Balykchy completed in December 2015. The pre-sedimentation tank in Karakol was completed by June 2017. Total of 6 boreholes rehabilitated and 2 new constructed in Balykchy and Cholpon-Ata.

(i) Not yet achieved.

In midterm review was noted the performance target for Non-Revenue Water (NRW) reduction is unrealistic: First the baseline figure needs to be established through metering. Then a reduction of 5-10% should be targeted. Reduction of 40% is completely unrealistic, without a significantly bigger investment. So this target needs to be shifted for the Phase II. Average annual Non Revenue Water for 3 cities is about 45% for 2012-2017 years: in Balykchy 44%, Cholpon-Ata 51%, and Karakol 36%. If we taking into account normative technical losses and deterioration of the network accepted by Vodokanals at 35%, and also the acquired experience, knowledge and provided special equipment, hydraulic network models, network zoning, now Vodokanals have opportunities to reduce their non-commercial losses.

The project has installed water meters on water supply sources in Balykchy and Cholpon-Ata cities in July 2017. It is expected now that measured data will show reliable data from the mentioned Vodokanals.

The project carried out all the necessary preparatory work, including the provision of equipment, preparation of computer models of the water supply systems, breakdown of the systems into water management areas, pilot area installation of water meters in the network and to consumers with data loggers in Balykchy and Cholpon-Ata cities. These two Vodokanal were provided with laptops and 2 representatives were trained in data collection in 22-25 August 2017.

Future work on reducing NRW should be accompanied with further increase of coverage consumers by water meters, now all new connections supplied with the water meter installation.

(ii) Close to be achieved.

In Balykchy, 4 Boreholes were rehabilitated and 1 new Borehole was built. Under the contract for the installation of water meters, pumps supplying water to the apartment buildings were replaced with more energy-efficient ones in July 2017.

In Cholpon-Ata, 2 Boreholes were rehabilitated, 1 new Borehole was built and 3 pumps were replaced at the headworks with the rehabilitated and connected to the water supply system reservoir in July 2017.

According to the data of the MIS of the Vodokanals in Balykchy and Cholpon-Ata cities a cost for electricity for the first half of 2017 decreased by 17% and 68% respectively. This good trend is expected to affect the annual energy efficiency for 1017 year.

(iii) Partly achieved.

Residual chlorine in the network is maintained at 0.3 ppm in Karakol and Cholpon-Ata city network, in Balykchy is not determined due to the lack of a Vodokanal's laboratory (see Supplementary Appendix D).

Wells are UV treated.

Achieved. The city councils required that all schools in their cities have their sanitary provisions improved, in lieu of the original planning of dealing with the schools over the planned three phases of the project. Total more than 27,800 students and teachers are benefitting from this approach in 21 schools and 1 kindergarten.

Rehabilitation of sanitary facilities in 10 schools in Balykchy completed in 2014. 9 schools in Karakol and 2 schools and 1 kindergarten in Cholpon-Ata completed at the end of 2015.

(i) Close to be achieved.

All three cities are not subsidized. The operating ratio is about 1.0 for 2016: in Karakol about 1.00, Balykchy 1.03, and Cholpon-Ata 0.98. The average still more than 0.8 and about 1.0. Operation ratio for MEs steel higher than 1. For example, in average among 3 Vodokanals the level of subsidies accounted 14% of revenue from 2010 to 2014, in Cholpon-Ata 22%, in Balykchy 17% and in Karakol 7%. In 2015 the situation in this respect slightly improved. They estimate the situation as to be a planned unprofitable enterprises, because the level of tariff almost half of the cost of the services. Karakol not received subsidies' from the city, their earnings cover operation and only 25% of the amortization cost. The level of yearly subsidies in Cholpon-Ata Vodokanal decreasing to 1.3 soms.

Balykchy Vodokanal received more than 6 mln soms, and also has a debt for electricity for the previous period about 50 mln soms (debt about 16 mln soms and penalty about 34 mln soms). Mayor of city Office had developed schedule to pay this debt till 2020.

(ii) Close to be achieved.

The three Vodokanals revenue collection efficiency are improving the average rate close to 90%: with collection efficiency for 2016 for Cholpon-Ata -80% Balykchy 105%, and Karakol 100%. As this indicator related to evaluation commercial losses it is need to be mention about accounts receivable. All 3 ME's have had about 54% of accounts receivables in relation to revenues from sales: in Balykchy 62%, Cholpon-Ata 35%, and Karakol 64%. An accounts receivable higher in Karakol from population, Cholpon-Ata from organizations, and in Balykchy from population. According a data from 2017 the situation improved in Balykchy, the accounts receivable decreased for 28%, the situation in two other municipalities not changed.

(iii) Achieved. Gender disaggregated database created for Vodokanal and Tazalyk enterprises.

(i) Achieved. Satellite images have been purchased for three towns, cadastral maps obtained.

(ii) Close to be achieved.

GIS maps installed in all 3 cities Vodokanal. Network model prepared for water supply network in Balykchy and Cholpon-Ata. Calibration of the network models implementing now by trained specialist of Vodokanals, Balykchy and Cholpon-Ata cities. Additionally provided Ultrasonic water meters per 1 set for each city, Balykchy and Cholpon-Ata in September 2017.

) Partly achieved.

Twinning program entered into, cancelled because of cultural mismatch. Vodokanal and Tazalyk management of the 3 cities made study tour to New Zealand's Water and Solid Waste processing plants in March 2014.

(ii) Achieved.

One representative of each Vodokanals of Balykchy city and Cholpon-Ata city trained in industrial water meters reading and using data cables to upload data to the laptop provided. The project provided special vehicles and equipment for rectification works. Some training also provided along with network rehabilitation works of contractor NCB-3.15 in June 2017. Now Vodokanals specialists are working on calibration network models. Calibrated network models will allow indicating areas with leaks. And then it will be possible to develop some correction actions.

(iii) Not yet achieved

This target will be achievable after the Phase 2. Sewage Treatment plants need to be upgraded, ADB TA project for preparation II phase is on-going.

(iv) Achieved.

About 32 women staff trained in 3 cities by GIS and MIS program: 13 in Karakol, 9 in Cholpon-Ata and 10 in Balykchy. Additional training was arranged by PMO in November 2015 and February 2016, in May July 2017.

Not achieved yet.

As some performance base indicators as NRW not yet measured as well as rehabilitation of Sewage treatment plants for all 3 cities will be in Phase II. This task should be shifted to Phase II.

Achieved.

The IEC services being provided by FNT Consultants are renewed in 3 quarter 2016 and contract completed in August 31 2017.

Additionally all relevant information is disclosed through the project web-site in Russian and English: www.isdp.kg

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.

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.

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 and national environment specialists at the PIO will provide training to staff members on monitoring and mitigation activities and ensure that the plan is updated as required.