December, 2000
World Bank Supports Water And Wastewater Rehabilitation In The Russian Federation

Contact Person:
Gina Ciagne (202) 458-4166
Email: Gciagne@worldbank.org

WASHINGTON, December 21, 2000--The World Bank today approved a loan of US$122.50 million for the Municipal Water and Wastewater Project for the Russian Federation. The project will support the most critical and immediate investments needed to improve the operation of the water and wastewater systems of 14 Russian cities with less than 500,000 inhabitants, and implement reforms aimed at improving the system operations and fiscal performance of wastewater enterprises (vodokanals).

The project, which will assist in restoring acceptable standards of drinking water and water resources pollution control, will also serve as a model to be used to disseminate and promote reforms in other municipalities of the Russian Federation.

The Municipal Water and Wastewater Project has the following components:

Immediate Investment Program (IIP): A set of immediate investments, considered to be high priority, will be supported by this component in each participating city. Typical investments to be financed by the IIP include, among others: (i) replacement of critical pumping equipment; (ii) rehabilitation of water or wastewater treatment plant components; (iii) rehabilitation of specific sections of water mains; and (iv) rehabilitation of water intakes and sources, particularly in cases of contamination.

Management Strengthening and Operational Improvement Program (MSOIP): This component will implement a specific and well-defined set of governance, technical and commercial reforms to improve the system operations, management, and performance of vodokanals.

Project Management and Implementation Support: This component will finance the elaboration of final design documents of all investments in the MSOIP-including, among other activities, the conduct of field surveys required for engineering designs and preparation of detailed cost estimates-supervision of construction services to ensure that the quality of equipment and civil works meet adequate standards, and general procurement assistance.

The loan for the Municipal Water and Wastewater Project has a maturity of 17 years, with a five-year grace period.

The Russian Federation joined the World Bank in 1992, since then, commitments to the country total approximately US$11 billion for 46 operations.
For more information on the Bank's work in the Europe and Central Asia region, visit: http://wbln0018.worldbank.org/eca/eca.nsf