GrCF: UKT Tirana Water Company (EBRD-49161)

Countries
  • Albania
Where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Feb 9, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
UJESJELLES KANALIZIME TIRANE
The holder of the loan, grant, or other investment.
Sectors
  • Climate and Environment
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 36.75 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 30 million
Converted using 2018-02-09 exchange rate.
Loan Amount (USD)
$ 36.75 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Currency conversion note:
Bank reported 30 million
Converted using 2018-02-09 exchange rate.
Project Cost (USD)
$ 41.65 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Currency conversion note:
Bank reported 34 million
Converted using 2018-02-09 exchange rate.
Primary Source

Original disclosure @ EBRD website

Updated in EWS Feb 20, 2018

Disclosed by Bank Aug 9, 2017


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Project Description

According to EBRD website, the project is the provision of a loan of up to EUR 30 million to Ujesjelles Kanalizime Tirana, Tirana's Water & Wastewater Utility Company, in two tranches: the first tranche of up to EUR 15 million to be committed upon signing and the second tranche of up to EUR 15 million, uncommitted. The proceeds of Tranche 1 will be used for: i) extension of the capacity of the Bovilla Water Treatment Plant and ii) construction of a new water pipeline that will transfer water from Bovilla Water Treatment Plant to the north western part of the City of Tirana by gravity. The proceeds of Tranche 2 would be determined at a later stage once a study on UKT's Strategic Water Resources is completed. The study will determine the most cost-efficient and economically viable investment to further address Tirana's water shortage, assessing both demand-side and supply-side strategic options. Supply-side options could include exploiting new water sources, such as the Guri I Bardhe, demand-side options could include rehabilitating Tirana's water network and installing strategic flow/pressure meters, or a mix of solutions. The project is a sub-project under the Green Cities Framework.

It aims to assist the Company in: i) providing a more resilient water system, reaching its objective of providing a 24 hour water supply by 2021, and ii) reducing the Company's operational costs by supplying water by gravity versus the high cost of pumping groundwater.

The transition impact of the proposed project will be achieved through:

1. As a subproject under the GrCF, the project will support the development of a Green City Action Plan ("GCAP") to identify, benchmark and rank environmental challenges in the city and further prioritise investments and other activities to address those challenges.
2. The project includes the preparation of a public service contract between UKT and the city of Tirana to improve predictability and accountability for UKT. 
3. The project is in line with the Green Economy Transition.

The project includes a Corporate Development Programme that will help UKT improve its operations and financial sustainability.

Investment Description
  • European Bank for Reconstruction and Development (EBRD)
Contact Information

Project Contact: Redi Molla
Email Address: redimolla@gmail.com
Telephone No.: +355 69 258 2402
Website: www.ujesjellesitirane.al
Office Address: Ujesjelles Kanalizime Tirane, Rruga: Besim Daja, Tirane, Shqiperi

General enquiries to EBRD: 
Telephone No.: +44 20 7338 7168
Email Address: projectenquiries@ebrd.com

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent. You can contact the PCM at pcm@ebrd.com or you can submit a complaint online using an online form, http://www.ebrd.com/eform/pcm/complaint_form?language=en. You can learn more about the PCM and how to file a complaint at http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html.