kfw’s activities in georgia with focus on municipal...

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KfW’s activities in Georgia with focus on

municipal investments

E5P Seminar:

“Investment Opportunities for Georgian Municipalities within the framework of E5P”

Christian Schaub

Project Manager

Urban and Regional Development

Eastern Europe, Caucasus, Central Asia

Agenda

2

Financial Cooperation in Eastern Europe, Caucasus and Central Asia

› Overview of the region

› Priority area: Urban and regional development

› KfW’s municipal infrastructure projects in Georgia

KfW Development Bank / Financial Cooperation with developing and emerging countries

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Eastern Europe, Caucasus and Central AsiaFocusing on a few priority areas with regional and supra-regional range

of tasks

Energy / Transport

Municipal development / Environment

Financial System Development

Health / Education

Office UkraineOffice UkraineOffice UkraineOffice Ukraine

((((KievKievKievKiev))))

Office GeorgiaOffice GeorgiaOffice GeorgiaOffice Georgia

(Tbilisi)(Tbilisi)(Tbilisi)(Tbilisi)

Office KyrgysistanOffice KyrgysistanOffice KyrgysistanOffice Kyrgysistan

(Bishkek)(Bishkek)(Bishkek)(Bishkek)

Branch

Uzbekistan

(Tashkent)

Office Tajikistan Office Tajikistan Office Tajikistan Office Tajikistan

(Dushanbe)(Dushanbe)(Dushanbe)(Dushanbe)Branch Azerbaijan

(Baku)Branch Armenia

(Yerevan)

Office Office Office Office RussiaRussiaRussiaRussia

((((MoscowMoscowMoscowMoscow))))


4

Priority areaUrban and regional development / Municipal infrastructure

Challenges in the region

• Often outdated urban infrastructure with low energy efficiency

• Poor supply of drinking water for the population

• Lack of environmentally-sound sewage/waste water disposal

• Lack of environmentally-sound disposal of municipal solid waste

Specific approaches through financial cooperation

Energy efficient and environmental/climate-friendly programs for:

• Water supply and sanitation, sewage treatment plants

• Solid waste management systems

• Integrated water resource management

• Urban transport

Outlook for future cooperation

• Expand water supply and sanitation financings to smaller cities and semi-urban areas

• Integrated financings for holistic sectoral approaches (e.g. integrated urban development concepts)

Financial Sources

• Federal Ministry for Economic Cooperation and Development

• EU / Neighbourhood Investment Facility (NIF)

• E5P-Initiative envisaged


5

Challenge

› Poor supply of drinking water for both the local population and tourists

› Run-down sewerage network and direct discharge of untreated sewage into the sea (health risks and pollution)

› Regular flooding within city boundaries

Information (Contribution of FC)

› Provision of concessional loans (thus far approx. EUR 120 million) and institutional support (approx. EUR 3.5 million in grants)

› Additional support from EU-NIF (altogether EUR 8.5 million) and regional development bank (BSTDB)

› Provision of additional concessional loan (approx. EUR 30 million) is envisaged

Integrated Water Project in Georgia IDrinking water supply, wastewater disposal and stormwater discharge

in greater Batumi area

Approach

› Rehabilitation/construction of infrastructure to ensure hygienically safe water supply and environmentally friendly discharge of waste water

› Focus on low energy consumption and efficient use of natural resources

› Connection of surrounding semi-urban and rural areas to the new system

› Establishment of a utility that operates efficiently and covers its operating costs

Impact

› Improved drinking water supply for 180,000 people

› Construction and operation of Georgia’s first mechanical biological WWTP

› Achievement of operating cost coverage

Volume of financing:

EUR 132 million

Donors:

BMZ, EU-NIF, BSTDB


6

Challenge

› Poor supply of drinking water and sanitation › Water supply barely managed and use of private

wells› Run-down sewerage network , if existent


› The feasibility study for the project is financed by a

special fund by the German BMZ

› KfW is prepared to provide a development loan for the financing of the investments (approx. up to EUR 20 million) and institutional support (approx. EUR 2 million in grants)

› The concessional loan shall be complemented by a local contribution from the Georgian side

› Use EU-NIF funds envisaged

Integrated Water Project in Georgia IIDrinking water supply and wastewater disposal in semi-urban and rural areas

in Ajara

Approach

› Rehabilitation/construction of centralised and decentralised infrastructure to ensure the continued and hygienically safe water supply and environmentally friendly discharge of waste water

› Support the establishment of a local water association to allow for economies of scales in the operation of the water system

› Development of awareness raising activities for the local population

Impact

› Improvement of the drinking water supply

› Contribution to enhanced environmental protection and water resource conservation

› Positive effects on the socio-economic and health situation for the semi-urban and rural population



EUR 22 million (estimated)

Donors:BMZ, EU-NIF (envisaged)

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National Master Plan for Sanitary Landfills


Challenges

› Few big towns, many medium-sized and small towns

› Mountainous terrain makes long-distance transport challenging

› Lower income especially in semi-urban and rural areas

Approach of the masterplan

› Identification and definition of the number of required new sanitary landfills, of catchment areas and of general locations

› Development of strategies forwaste minimisation andrecycling

› Disposal on sanitary landfills complying with internationally accepted standards according to EU landfill directive

Impact

› Provide environmentally-friendly and efficient, integrated solid waste management systems and avoid negative impacts on human health.

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Challenge

› Formalized waste disposal only exist in regional centers and urban agglomerations

› Municipal waste is usually collected in unsuitable containers, transported inefficiently and disposed on uncontrolled dump sites

› Dump sites have huge negative environmental (e.g. gas emissions) and health impacts


› Provision of concessional loan (EUR 20 million)

› Additional support from EU-NIF (EUR 2 million) to

strengthen institutional set-up and conduct

awareness raising campaigns

Solid Waste Project in Georgia IIntegrated Solid Waste Management (ISWM) in greater Kutaisi area

Approach

› Construction of a new, regional sanitary landfill that serves the City of Kutaisi as well as the surrounding municipalities

› Establishment of a material recovery facility for separation of recyclables

› Establishment of a set of transfer stations to allow forenergy-efficient and low-cost long-distance transport

Impact

› An environmentally and hygienically sound integrated solid waste management system in greater Kutaisi area

› Transport and safe disposal that fulfill EU standards

› Implementation of a recycling system for mixed solid waste

› Introduction of separation at-source in pilot areas


EUR 22 million

Donors:

BMZ, EU-NIF


9

Challenge

› Uncontrolled dump sites have huge negative environmental (e.g. gas emissions) and health impacts

› Waste disposal only exists in urban agglomerations

Solid Waste Project in Georgia IIIntegrated Solid Waste Management in the regions of Kakheti and

Samegrelo


EUR 30 million (estimate)

Donors:

BMZ, E5P (envisaged)


Approach

› Construction of a new sanitary landfill based on EU standards

› Improvement of primary collection and transport by supplying appropriate collection means and development of a logistics model

› Minimization of waste by introduction of reuse and recycling initiatives and investigation of further waste treatment activities

› Construction of possibly necessary transfer stations

Contribution of FC

› The feasibility study for the program is financed by a special fund by the German BMZ

› KfW is prepared to provide a concessional loan of up to EUR 30 million as well as institutional support

› Inclusion of E5P funds envisaged

Impact

› Improvement of the regional socio-economic and environmental situation through a modern, climate-friendly integrated solid waste management system

Thank you for your attention!

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Whom to contact in Frankfurt

Health and Social Protection(LE d 5)

Dr. Marlis Sieburger (3575)

Dr. Agnes Brinkmann (ext.TSV)(4043)Dr. Joost Butenop (TSV) (xxxx)Andrea Godon (4918)Olga Hefele (3392) Nina Otto (3985)Dr.Joachim Schüürmann (TSV) (9622)Hannah Wiese (4123)Tom Woyack (9776)

Sekretary: Anika Singh (1033)

Financial System Development(LE d 2)

Silvia Paschke (2963)

Judith Böhnke (1430)Monika Günthner (4719)Philipp Hauger (9020) Sandra Schmidt (4630)Dr. Larissa Schönfeld (1915)Dr. Dareg Zabarah (9247)

Sekretary: Ulrike Franz (3440)

RM = Regional Manager; CM = Country Manager; PE = Principal Economist; OD = Director KfW Office, TSV = Technical Engineer

Financial Cooperation with Europe and AsiaRoland Siller (4575)

Member of the Management Committee

Sekretary: Manuela Auth (4178) / Fax (4183)

Regional Team Eastern Europe, Caucasus, Central Asia

(LE d 1)Philip Graf von Schwerin (3566) - RM

David Betolaza (CM/PE) (3782)Armenia, Azerbaijan; GeorgiaErika Benz (2586)Transform, Translations RussianDr. Ralf Orlik (CM) (6461)Belarus, Moldova, Russia, UkraineDr. Anke Philipps (CM/PE) (4334)Tajikistan, Uzbekistan, KyrgysistanMartina Allaw (4213)Planning and Cost-ControllingRegina Schneider (2856)

Office Caucasus/Georgia Lars Oermann (OD)Office Central Asia/Kyrgysistan Thomas Lehmann (OD)Office Russia Ekaterina Galitsyna(OD)Office Tajikistan Kerstin Laabs (OD) Office Ukraine Gunnar Wälzholz (OD)

Sekretary: Martina Allaw (4213)

Energy and Natural Resources(LE d 3)

Jan Blum (9042)

Sandra Lutz (9681)Frank Mörschel (8681)Julia Mohs (1521) Andreas Weitzel (2256)

Sekretary: Nicole Raubal (1844)

Urban and Regional Development(LE d 4)

Arne Gooss (1865)

Petar Gjorgjev (4952)Ursula Heister (2848) Christoph Isenmann (8996)Christian Schaub (1855)Bernhard Schenk (ext.TSV) (4108)Samdra Soares da Silva (3144)Thomas Wolf (TSV) (3741)

Sekretary: Nicole Raubal (1844)

Eastern Europe, Caucasus, Central Asia(LE d)

Eva Witt (3467)Director

Sekretary: Andrea Lahnstein (3137) / Fax (2286)

Fax of the Department: (2547)

March 2015

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