Project for modernization of the Solid Waste Management System in Semey – Capacity Building and Corporate Development

The City of Semey (the “City”) is the administrative centre of the Abay Region with a population of 344,000.

To improve the solid waste management situation in the city, the EBRD developed a concept for an integrated solid waste management system as part of a feasibility study, which served as the basis for priority measures. The project, loan and grant agreements were signed between Keleshek State Enterprise (the “Company”), the city authorities and the EBRD on 16 June 2021, 16 June 2021 and 23 February 2022 respectively.

The investment funds amount to 6.82 billion tenge, of which the EBRD loan to the Company in the amount of 3.83 billion tenge (EUR 7.50 million) is co-financed by a capital expenditure grant of 2.99 billion tenge from the Akimat of the region and the Akimat of the city. The EBRD loan consists of two tranches, namely: i) Tranche 1 (up to KZT 3.04 billion) to finance the construction of a new sanitary landfill; and ii) Tranche 2 (up to KZT 0.79 billion), which will finance the construction of a biological treatment plant.

In February 2022, a contract was signed between Keleshek State Enterprise and Corporate Solutions (UK) / BDC Consulting for the provision of consulting services on Capacity Building and Corporate Development.

Overall Objective: To assist the City establish a proper contractual framework between all sector stakeholders (i.e. the City, Company, private MSW service providers, and end-users), and to ensure the provision of a high standard of SWM services in a financially and environmentally sustainable manner.

The following objectives were achieved under the contract:

- Strengthen the sector’s institutional framework through: i) Preparing a new landfill gate fee setting methodology based on a charge levied upon weight of waste in tonnes; ii) Establishing an approach to the end user tariff revisions in line with the approved tariff methodology; and iii) Developing an integrated approach to SWM to improve operational, financial, and corporate governance of the sector.

- Support the Company’s capacity building and corporate development programme to ensure sustainability of its operations and its ability to meet EBRD’s loan covenants.

- Develop and implement a structured approach to raising public awareness to encourage source-separation, recycling, and resource efficiency.

- Minimise the adverse impact of the project on the vulnerable section of the population with a focus on ensuring equality between men and women.

Key deliverables:

D-1: Inception Report

D-2: Recommendations for regulatory improvements and sector setup

D-3. Solid Waste Management Programme Roadmap and Report

D-4: Finalisation of contracting arrangements

D-5: Landfill Gate Fee and end-user tariffs

D-6: Finalisation of Public Service Contract

D-7. Financial and Operational Performance Improvement Programme

D-8: Stakeholder Engagement Programme

D-9: Trainings and Capacity Development Plan