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| Voronezh Region |
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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 | 27289 |
| Company name | Voronezh Oblast |
| Country | Russian Federation |
| Sector | Utilities |
| Environmental category | B |
| Department | Sub-National Finance |
| Status | Pend PDS-IR |
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| Date SPI disclosed | August 1, 2008 |
| Projected board date | September 11, 2008 |
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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 proposed investment would support the 2008 capital expenditure program of the Voronezh Region (the Oblast) of the Russian Federation that includes:
- the gas distribution program that would give access to natural gas to 92% for the Oblast population;
-the rehabilitation or replacement of 150 district heating boiler facilities that would improve performance and reliability of heating facilities, significantly reduce fuel costs and reduce emissions: and
- the upgrade of physical infrastructure and equipment at several regional hospitals and the regional cardiac center, as well as the construction of new regional perinatal and oncology centers. |
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| Project sponsor and major shareholders of project company |
The Voronezh Oblast is one of 83 constituent entities of the Russian Federation with autonomous executive and legislative branches and budget.
The Voronezh Oblast is the second largest region of Central Russia with the total area of 52,400 sq. km. It is one of the most densely populated Russian regions with 2.3 million inhabitants and a high percentage of rural population. In 2007, the Oblast’s Gross Regional Product per capita was below 50% of the national average, and the Oblast is classified by IFC as one of the frontier regions of the Russian Federation. |
| Total project cost and amount and nature of IFC's investment |
| Total capital expenditures financed and managed by the Oblast in 2008 are estimated at RUB 3.6 billion, including RUB 2.1 billion to finance ongoing regional programs in health, gas distribution and energy efficiency. The proposed investment is a RUB 1.4 billion local currency loan for IFC’s own account to support Oblast’s capital expenditure plans. |
| Location of project and description of site |
| Capital expenditure programs will be implemented across the Voronezh Oblast. |
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| Anticipated development impact of the project |
The proposed investment is expected to have a positive impact on Oblast’s development by improving the economic and social infrastructure; due to IFC financing these benefits will be available to the people of the Oblast earlier than was originally planned. The project’s key impacts include:
- the reduction of premature mortality, ill health and disability among working age population;
- improvements in quality of life and the reduction of fuel cost to households due to access to natural gas;
- the reduction of greenhouse gas emission by both district heating facilities and households. |
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| IFC's expected development contribution |
| The long-term local currency financing considered by IFC and not easily available from local banks would enable Oblast to diversify its funding options and accelerate its capital expenditure program. The proposed investment is expected to help the Oblast improve its policies and practices in environmental and social performance as well as in financial management and planning. |
| Environmental and social issues - Category B |
This is a category B project. The gasification program in the region, including a switch from a coal to gas of about 150 boilers, will:
- improve air quality in the vicinity of the boiler plants;
- improve working conditions of the boiler operators;
- provide better heat services for public buildings due to stable heat supply;
- improve efficiency and reduce carbon footprint.
As for environmental and social adverse impacts, their number is limited, and includes:
- Compensation for agricultural losses during construction;
- Construction impacts on natural habitat and protected areas;
- Secondary pollution from contaminated soils during construction;
- Medical waste management;
- Fugitive air emissions from gas distribution systems;
- Community health and safety, including public emergency response program for gas leaks, ruptures and explosions; and
- Occupational health and safety of construction workers.
Mitigation measures for the key environmental and social issues have been agreed between IFC and the Voronezh Region Administration (the VRA). When implemented by the VRA, these measures should ensure the project’s compliance with the environmental and social requirements: the host country’s laws and regulations and IFC’s Environmental and Social Performance Standards. |
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| For inquiries about the project, contact: |
Alexander Nikolaevich Popov, Head
The Department for Public Relations
Telephone: (4732) 55-57-31
Valentina Vasilyevna Tokareva, Chief Advisor
The Department for Public Relations
Telephone: (4732) 55-28-33
Website:
Voronezh's website "Reception"
Voronezh's website "Machinery of Administration" |
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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 |
Project documents including environmental documents is available in local municipalities affected by the capital expenditure program as well as in the Directorship for Capital Investments of the Voronezh Oblast:
Vyacheslav Alexeevich Astankov, Director General
4 Kirov Str., Voronezh, 394018
Telephone: (4 732) 20-40-37; 72-77-40 |
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