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| Ufa Vodokanal |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 27542 |
| Company name | Ufavodokanal |
| Country | Russian Federation |
| Sector | Utilities |
| Environmental category | B |
| Department | Sub-National Finance |
| Status | Pending Signing |
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| Date SPI disclosed | August 24, 2009 |
| Projected board date | September 24, 2009 |
| Previous Events | Approved: November 2, 2009 |
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| View Environmental & Social Review Summary (ESRS), click here |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| The City of Ufa has been undertaking a staged long-term wastewater program, implemented by a municipal company Ufa Vodokanal (“UVK” or the “Company”). The proposed Project will continue the IBRD support to help the Company to complete several on-going wastewater infrastructure investments including the construction of the 3rd wastewater treatment block (Block 3) with daily capacity of 130,000 m3 and the completion of related infrastructure investments (including utility systems, outlet under river pipe line chamber, and grit removals etc.) The IFC loan proceeds would also help refinance a part of the Company’s existing short-term debt. |
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| Project sponsor and major shareholders of project company |
| The City of Ufa is the capital of the Republic of Bashkortostan in the Russian Federation. The City is located 1,319 km east of Moscow in Urals region which is the traditional boundary between Europe and Asia. The City is one of about a dozen cities in the Russian Federation with over 1 million residents and an industrial center in the region. The region and the City are industrially developed territories with large economic exposure to oil and petrochemical sector and a diversifying economic base including electrical and mining equipment, services, processed foods and constructions sectors. |
| Total project cost and amount and nature of IFC's investment |
| The proposed IFC investment is a local currency senior loan of up to RUR 500 million. The Company will use about RUB250 million of the IFC loan to complete Block 3 and other related infrastructure investments by 2010 with total estimated cost of RUB681.2 million. The remaining IFC loan proceeds of RUB250 million will refinance some existing short-term loans of the Company. |
| Location of project and description of site |
| The Project will be implemented in the city of Ufa in the Republic of Bashkortostan, Russian Federation. |
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| Anticipated development impact of the project |
| The IFC loan, together with the IBRD funding will help complete the well-needed 3rd treatment block construction for Ufa city. The additional wastewater treatment capacity completed under the Project will eliminate disposal of untreated wastewater within the City, contributing to a cleaner environment and reduced pollution of the river and the surrounding water bodies. It will have a broad reach and help improve overall living standards over the medium term, enabling the City to attract greater private investment as Ufa continues to develop its economy. |
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| IFC's expected development contribution |
| The IFC loan would provide the Company and the City with long-term market-based Ruble financing, which is of very limited supply in the local market. This will help improve the Company’s capital structure and reduce the risks related to financing long-gestation capital projects using short-term debt. Also, as a result of the proposed investment the Company and the City would benefit from gaining further access to World Bank Group’s experience in the area of wastewater, helping secure successful implementation of the project. |
| Environmental and social issues - Category B |
| This is a category B project according to IFC’s environmental and social review procedure. A summary of IFC’s environmental and social review findings for the project including the rationale for the B categorization is publicly available in the Environmental and Social Review Summary (ESRS) disclosed through IFC’s external website. |
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| For inquiries about the project, contact: |
Mr. Nasyrtdinov Ilgiz Dikkatovich
Head of the Territorial Finance Department
120 October Prospect
The city of Ufa, Bashkortostan
Russia 450098
e-mail: gorfu@finance.ufanet.ru
Tel.: +7 347 279-05-40
Fax: +7 347 235-95-53
Website: http:www.ufacity.info
Mr. Vyacheslav Semenovich Gordienko
General Director
Rossiyskaya Street, 157/2, Ufa, Bashkortostan, Russia 450098
e-mail: uwc@uwc.ufanet.ru
Tel.: +7 347 284-13-21
Fax: +7 347 284-15-50 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
| Local access of project documentation |
For inquiries about the project, please contact:
Russia, 450098, Bashkortostan, the city of Ufa,
Rossiiskaya street, 157/2
http://www.ufavodokanal.ru
Karimov Radik Faritovich, Principal Finance Specialist
Tel: +7 347 2790743;
e-mail: karimov@uwc.ufanet.ru |
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