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Development of water supply
Housing & Communal Servises
Development of
water supply
Historic Settlement (Phase 2)

The goal of the Project is to boost the quality and reliability of water supply and sanitation services to the population, improve the environmental situation and minimize damage to the environment.

The Project is expected to address the following key objectives to achieve this goal:

·        Prevention of environmental pollution caused by discharge of untreated sewage and burial of sewage sludge;

·        Comprehensive solution of issues relating to modernization and development of municipal water supply and sanitation systems, including water treatment as well as wastewater disposal and treatment;

·        Construction or development of stormwater collection and treatment system;

·        Improving the sustainability and resource efficiency of the providers of water supply and sanitation services;

·        Taking stock of lessons learned by the Participating Cities and making recommendations on dissemination of generated experience in other Russian cities.

Project implementation period: 6 years.

The Project consists of the following components:

Component 1: Implementation of Investment Plans for Integrated Projects of Water Supply and Sanitation System Development in the Participating Cities.

Aim of Component 1: Modernization and development of water supply and sanitation systems in the Participating Cities; quality and reliability improvement of water supply and sanitation services to the population; improvement of environmental conditions and reduction of environmental damage, including damage to the Volga River basin, through implementation of integrated water supply/sanitation system development projects.

Component 1 includes two Subcomponents:

Subcomponent 1(а): Financing of Investment Plans for Integrated Water Supply and Sanitation System Development Projects.

The key investment subprojects to be implemented under this Subcomponent in the Participating Cities are as follows:

a)     Modernization (if necessary, construction or reconstruction) of water treatment systems to improve the quality (composition and properties) of water and increase the reliability of water supply services, stability of operation and resource efficiency of water supply systems;

b)     Construction of water supply networks to allow connecting in-progress and existing capital projects, including single-family houses, to centralized water supply systems and create comfortable living conditions for households;

c)     Modernization (if necessary, construction or reconstruction) of water supply facilities (networks and pumping stations) to increase the resource efficiency of water production and transportation to users and households;

d)     Modernization (if necessary, construction or reconstruction) of wastewater transportation and treatment facilities to improve the reliability and quality of sanitation services, create comfortable living conditions for households, and enhance the environmental safety of water disposal by preventing penetration of untreated sewage into the Volga River basin and groundwater pollution;

e)     Construction (modernization or reconstruction) of stormwater collection and treatment systems to improve the efficiency of wastewater treatment and reduce negative impact on the environment.

Subcomponent 1 (b): Technical Assistance Program for Implementation of Integrated Water Supply and Sanitation System Development Projects», including assistance in preparation and implementation of investment projects, development of design documents and technical part of bidding documents, provision of construction oversight services and designer supervision services as established by the effective legislation of the Russian Federation.

Component 2: Project Management and Monitoring

Aim of Component 2: Support of Project implementation, Project monitoring, oversight and evaluation.

It is an integrated Project with a complicated structure of comprehensive water supply/sanitation system development projects in the Participating Cities comprising a rather wide range of investment subprojects; it is implemented using foreign investment and budget funds from different levels of government. Therefore, efficient Project management and monitoring of Project progress are especially important for the achievement of Project goals.

Component 2 includes two Subcomponents:

Subcomponent 2(а): Project Management

Project management includes:

·        Establishment of a general and administrative management system;

·        Establishment of a financing, accounting and reporting system;

·        Creation of a system of contractual relations;

·        Establishment of a work planning and coordination system;

·        Organization of competitive selection of consultants and contractors.

Subcomponent 2 (b): Monitoring and Evaluation

Project monitoring and evaluation will be carried out in two key areas:

·        Monitoring and evaluation of Project progress, including progress monitoring and evaluation of investment projects and specific Project activities;

·        Monitoring and evaluation of the achievement of Project goals and outcomes, including monitoring and evaluation of the achievement of Project ultimate and intermediate goals and outcomes (Project objectives).

Project Financing Sources and Implementation Period

The Project has the following financing sources:

·        The NDB Loan: USD320,000,000 (for Components 1 and 2);

·        The federal budget: $80,000,000 (for Component 1);

·        The Project Beneficiaries shall allocate co-financing funds from the respective regional budgets and make every effort to provide for co-financing from local budgets and attract investments. The amount of funds to be allocated from the regional and local budgets and the size of attracted investment shall be determined proceeding from the need to implement specific subproject activities in the Participating Cities and/or taking into account activities to be implemented in the Participating Cities in support of the Project. The total amount of co-financing from the Russian side shall be at least 25 percent of the NDB Loan.