UZBEKISTAN WATER FRAMEWORK LOAN

The project will support improvements in water supply as well as wastewater collection and treatment in Uzbekistan.

One of the most important and imminent bottlenecks for the Uzbekistan economy is water supply. The project aims at relieving constraints on water supply by improving the quality of water and enhancing the coverage and efficiency of wastewater networks. The ultimate aim of the project is in line with the UN Sustainable Development Goals number 6 (water and sanitation for all) and number 13 (climate action). The project will also contribute to EU objectives included in the Regional Multi-Annual Indicative Programme 2014-2020 for Central Asia as well as the EU's bilateral cooperation programme which is seeking to improve drinking water supply and sanitation in Uzbekistan. Furthermore, the investments are in line with the Government's "Program for the Comprehensive Development and Modernization of Water Supply and Sewerage Systems, 2017-2021" , as they aim at improving access to drinking water and sanitation. The schemes will have a positive socio-economic impact in the cities and improve the quality of life for the citizens.

Significant environmental or social risks are not expected at this stage. However, compliance with the Bank's environmental and social standards will be assessed during the subsequent individual scheme allocation appraisals. The schemes are expected to have some minor environmental impacts during construction and no negative residual impact in the operational phase. The project's residual negative impacts during construction and operation are limited and offset by these expected positive impacts. The project is not likely to have any negative impacts on nature conservation areas, as schemes are mostly located in a consolidated urban environment and on the existing main routes of water mains and sewers and in the premises of existing facilities. Nevertheless, compliance with the Birds and Habitats Directives will be further checked during appraisal of individual schemes during the implementation of the project and before allocating finance to schemes.

If located in the European Union, the Promoter would fall under the scope of Directive 2014/24/EU on public procurement. The project is therefore considered as an operation in the public sector and the Promoter needs to comply with the relevant sections of the EIB's Guide to Procurement. A procurement plan is not yet available at the time of appraisal and will be requested by the Bank and approved at scheme allocation. Procurement has not started and is planned to start in late 2018. Open and/or restricted tender procedures are envisaged with publication in the Official Journal of the European Union (OJEU), as and when required. It is expected that almost all works contracts and most of the services contracts will be subject to this procedure.

The proposed operation is a loan supporting investments in the water sector in Uzbekistan complementing the World Bank's "Water Services and Institutional Support Program".