Uzbekistan: Tashkent Province Sewerage Improvement Project

Sovereign Project | 52045-001

The project takes an integrated approach to improving the access to and reliability of water supply and sanitation (WSS) services in Tashkent Province; and will strengthen climate resilience, gender equality, and environmental sustainability for a green and inclusive recovery after the coronavirus disease (COVID-19) pandemic. It will achieve this by (i) enhancing sewerage coverage in cities; (ii) improving decentralized sanitation in rural areas; (iii) installing production and consumption water meters; (iv) supporting comprehensive capacity building of the Tashkent Suvtaminot (TST), the provincial WSS utility; (v) preventing the spread of COVID-19 through gender-friendly awareness campaigns for water, sanitation, hygiene, and health (WASH+H) measures; and (vi) engaging civil society for broad citizen participation.

Project Details

  • Project Officer
    Petrone, Massimo
    Central and West Asia Department
    Request for information
  • Country/Economy
    Uzbekistan
  • Sector
    • Water and other urban infrastructure and services
Project Name Tashkent Province Sewerage Improvement Project
Project Number 52045-001
Country / Economy Uzbekistan
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4146-UZB: Tashkent Province Sewerage Improvement Project
Ordinary capital resources US$ 161.00 million
TA 6837-UZB: Institutional Capacity Support for Modern Utility Management
Republic of Korea e-Asia and Knowledge Partnership Fund US$ 400,000.00
Spanish Cooperation Fund for Technical Assistance US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

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

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The project takes an integrated approach to improving the access to and reliability of water supply and sanitation (WSS) services in Tashkent Province; and will strengthen climate resilience, gender equality, and environmental sustainability for a green and inclusive recovery after the coronavirus disease (COVID-19) pandemic. It will achieve this by (i) enhancing sewerage coverage in cities; (ii) improving decentralized sanitation in rural areas; (iii) installing production and consumption water meters; (iv) supporting comprehensive capacity building of the Tashkent Suvtaminot (TST), the provincial WSS utility; (v) preventing the spread of COVID-19 through gender-friendly awareness campaigns for water, sanitation, hygiene, and health (WASH+H) measures; and (vi) engaging civil society for broad citizen participation.

The project will develop an integrated wastewater management system in six cities, one urban center, and 70 rural settlements in three districts in Tashkent Province._It will provide inclusive access to centralized sewerage to more than 800,000 people in urban areas, and access to decentralized sanitation systems to 136,000 people in rural areas._ The project will also help establish TST as a model utility for replication in other provinces.

Project Rationale and Linkage to Country/Regional Strategy

Macroeconomic situation and COVID-19 recovery. Uzbekistan is a lower middle-income country and one of Central Asia's fastest-growing economies, achieving a consistent annual growth rate of 4%6%, with real gross domestic product (GDP) increasing from 4.4% in 2017 to 5.4% in 2018 and expanding to 5.8% in 2019._The Government of Uzbekistan is undertaking structural reforms focused on economic diversification, attracting foreign direct investment, and balancing urban and rural development. While GDP growth in 2020 decreased sharply to 1.6% because of COVID-19 impacts, it is projected to increase by 5.0% in 2021 and 5.3% in 2022._About 448,000 or 1.3% of the population are estimated to have fallen into poverty because of the COVID-19 crisis, despite the government's substantial measures to boost health spending and support households and firms._The crisis is worsening because of limited WSS services and unsanitary conditions.

Investment in WSS services is an essential part of the government's development and COVID-19 recovery strategy._Less than 20% of the population has access to adequate WSS services, and the country has an estimated WSS infrastructure deficit of $2.9 billion._Despite recent investments by international financial institutions, large gaps remain to be able to upgrade the country's legacy WSS infrastructure. This has resulted in environmental and public health risks undermining livability and constraining the country's economic potential.

Project area. Tashkent Province is the country' economic engine, generating almost 25% of the country's GDP. It is the largest urban agglomeration, with 3.1 million people spread across 7 cities, 14 districts, 97 semi-urbanized settlements, and 885 rural villages.

Key issues. Despite its strong economic potential, Tashkent Province is hindered by pervasive limitations in sanitation coverage and services, aggravated by an increasing urban population. Only 17% of the province's population is connected to sewerage systems, while the remaining 83% rely on pit latrines and earth ditchespractices that threaten public health and environmental quality._Sewerage system in urban areas has not expanded since 1991, resulting in service coverage of only 35%. The wastewater treatment plants (WWTPs) and networks are no longer functional. Rural settlements have no wastewater services. As a result, massive quantities of untreated wastewater (up to 80% of the total volume) are discharged to the environment. Water quality in the province is deteriorating, and pollution levels exceed national standards. This is compounded by the decline in river flows caused by climate change. In addition, the expected rise in temperature will increase stress on materials and biological treatments. Key issues include limited operation and maintenance (O&M) capacity, an unattractive environment for private sector participation, and low metering and tariff levels._Water supply losses, estimated at 38%, are difficult to verify because of limited water metering. The wastewater tariff is below cost recovery levels, hindering O&M and service delivery.

Institutional performance and reforms. Since its reorganization in 2016, TST and its 2,770 staffserving about 340,600 water supply and 170,000 sewerage connectionshave implemented a series of reforms addressing critical needs. Two ongoing water supply projects financed by the Asian Development Bank (ADB) have helped support these reforms in the province._These include consolidated smaller water supply systems, strengthened public accountability, modernized management systems, expanded coverage, increased tariffs, and improved staffing. However, TST's operational performance still lags in corporate management, customer service standards, industrial sewer inspection, nonrevenue water management, outsourcing contracts, and wastewater management. Smart water management solutions, such as information and communication technology, geographic information systems, smart water metering, supervisory control and data acquisition systems, and geographic information system-based data for asset management and O&M, will improve its operational capacity. A clear institutional road map is needed to guide TST's medium- to long-term corporate development for optimal and sustainable service delivery to customers.

In November 2019, the government formed a national water agencyUzsuvtaminot Joint Stock Company (UJSC)to strengthen WSS. The suvokovas (provincial utilities), including TST, under the Ministry of Housing and Communal Services, have been transferred to UJSC._This reform is expected to enable private sector participation and improve efficiencies. UJSC is the parent company for all suvokovas, responsible for tariff collection, sector planning, and the construction and modernization of the national drinking water supply and sewerage system._It is also the executing agency for all WSS projects financed by international institutions. This is expected to improve the performance of ADB-funded projects because of its strong coordination with suvokovas. The ADB project coordination unit (PCU), which implements ongoing ADB financed projects, has been transferred to UJSC management.

ADB's phased investment approach in Tashkent Province. ADB is implementing two WSS improvement projects in the province (footnote 9). The first, approved in 2016, aims to increase access to piped drinking water from 20% of the rural population in two districts to 100% by 2023. The second, approved in 2019, aims to (i) expand water supply for rural populations from less than 20% to 100% in two more districts, and (ii) address rural sanitation needs by providing septic tanks in selected rural settlements. The project will complement these ongoing projects to fill essential sanitation infrastructure and service gaps and to strengthen TST's institutional capacity in WSS services._

Strategic alignment. The project is aligned with Uzbekistan's national development strategy, 20172021 for inclusive and sustainable growth and access to basic urban services._It also supports government decrees on WSS and ADB's Water Operational Plan, 20112020._The project is in line with ADB's country partnership strategy for Uzbekistan, 20192023, which aims to bridge the gap between rural and urban development._It is also aligned with ADB's Strategy 2030 operational priorities.

Development partner coordination. ADB is the lead WSS development partner in Uzbekistan. The World Bank and the Swiss Agency for Development and Cooperation are involved in WSS projects in Tashkent Province. The Agence Fran

aise de D

veloppement, the Asian Infrastructure Investment Bank, and the Islamic Development Bank are also involved in WSS. Close coordination in sector investments and policy dialogue is regularly practiced.

Lessons. Key lessons from ongoing and past ADB-financed WSS projects in the country include the need for (i) engaging the private sector in O&M with transfer of skills, (ii) providing institutional capacity support for sustainability, (iii) installing sewer connections, (iv) achieving high procurement readiness using project readiness financing, and (v) encouraging long-term policy dialogue and partnership for strategic investments to achieve sustainable outcomes.

Impact

Environment, health, and living conditions in Tashkent province improved.

Project Outcome
Description of Outcome

Reliable, sustainable, and affordable wastewater services in six cities and one urban center improved and expanded; and affordable decentralized wastewater disposal and services in rural areas of three districts established.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Inclusive urban and rural sanitation systems with climate-resilient features developed

1a. Centralized urban wastewater systems in the six cities of Akhangaran, Almalyk, Angren, Bekabod, Chirchik, and Yangiyul, and Chinaz urban center improved

1b. Decentralized wastewater systems in 70 rural settlements in Chinaz, Yangiyul, and Zangiota districts established

Institutional capacity for sustainable sanitation services delivery strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Tashkent
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

All consultants will be engaged in accordance with the ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulation for ADB Borrowers (2017, as amended from time to time).

Procurement

Advanced contracting for two packages for the rehabilitation and expansion of WWTPs in project cites is approved._

__

The procurement will be undertaken in accordance with the ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulation for ADB Borrowers (2017, as amended from time to time).

Responsible ADB Officer Petrone, Massimo
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Urban Development and Water Division, CWRD
Executing Agencies
Uzsuvtaminot Joint Stock Company
Timetable
Concept Clearance 02 Mar 2019
Fact Finding 07 Apr 2021 to 01 Jul 2021
MRM 24 Aug 2021
Approval 24 Nov 2021
Last Review Mission -
Last PDS Update 24 Nov 2021

Loan 4146-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2021 29 Dec 2021 30 Sep 2022 30 Jun 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 185.80 Cumulative Contract Awards
ADB 161.00 25 Nov 2022 75.53 0.00 47%
Counterpart 24.80 Cumulative Disbursements
Cofinancing 0.00 25 Nov 2022 16.71 0.00 10%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

TA 6837-UZB

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Nov 2021 17 Dec 2021 17 Dec 2021 31 Dec 2027 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
0.00 800,000.00 0.00 0.00 0.00 0.00 800,000.00 25 Nov 2022 24,080.00
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
4146-UZB Tashkent Province Sewerage Improvement Project (TS-CW-04) Invitation for Bids Closed 15 Jul 2022 24 Oct 2022
TS-СW-03: Construction of sewerage networks and pumping stations in Yangiyul and Chinaz cities (TS-CW-03) Invitation for Bids Closed 15 Jul 2022 13 Sep 2022
4146-UZB Tashkent Province Sewerage Improvement Project (TS-CW-05) Invitation for Bids Closed 15 Jul 2022 24 Oct 2022
4146-UZB Tashkent Province Sewerage Improvement Project (TS-CW-06) Invitation for Bids Closed 15 Jul 2022 13 Sep 2022
4146-UZB Tashkent Province Sewerage Improvement Project (TS-CW-03) Invitation for Bids Closed 15 Jul 2022 24 Oct 2022
Project Management and Construction Supervision Consultant Firm - Consulting Closed 10 Jun 2022 24 Jul 2022
ICSMUM Firm Consultant Firm - Consulting Closed 02 Jun 2022 26 Jul 2022
Senior Project Coordinator Individual - Consulting Closed 20 Dec 2021 03 Jan 2022
Project Coordinator Individual - Consulting Closed 20 Dec 2021 03 Jan 2022
52045-UZB: Tashkent Province Sewerage Improvement Project [TS-CW-02] Invitation for Bids Closed 29 Jun 2021 14 Sep 2021
52045-UZB: Tashkent Province Sewerage Improvement Project [TS-CW-01] Invitation for Bids Closed 29 Jun 2021 06 Sep 2021

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Lot 3: Rehabilitation of WWTP with the capacity of 100,000 m3/day in Angren city Loan 4146 15 Oct 2022 JV of Alkatas Insaat Ve Taahhut A.S. and Mesmer-East LLC | Erturk Sokak, No.1 K1 Kavacik-Beykoz, Istanbul 34810 Uzsuvtaminot JSC 18,435,785.11 18,435,785.11
Lot 2: Rehabilitation of WWTP with the capacity of 100,000 m3/day in Almalyk city Loan 4146 15 Oct 2022 Alkatas Insaat Ve Taahhut A.S. | Erturk Sokak, No.1 K1 Kavacik-Beykoz, Istanbul 34810 Uzsuvtaminot JSC 19,814,657.58 19,814,657.58
Lot 2: Rehabilitation of WWTP with the capacity of 130,000 m3/day in Chirchik city Loan 4146 15 Oct 2022 JV of Alkatas Insaat Ve Taahhut A.S. and Mesmer-East LLC | Erturk Sokak, No.1 K1 Kavacik-Beykoz, Istanbul 34810 Uzsuvtaminot JSC 22,228,036.93 22,228,036.93
Lot 1: Rehabilitation of WWTP with the capacity of 60,000 m3/day in Bekabad city Loan 4146 15 Oct 2022 Alkatas Insaat Ve Taahhut A.S. | Erturk Sokak, No.1 K1 Kavacik-Beykoz, Istanbul 34810 Uzsuvtaminot JSC 15,049,020.48 15,049,020.48

Procurement Plan