The Project envisages reduction in water losses due to reduced leakage of water in the water supply network; reduction in energy consumed for treatment of water and sanitation due to upgraded in technology and introduction of more efficient treatment systems; increase in number of households connected to the centralized water supply and sanitation services.

The objective of the Project is, through modernizing and constructing integrated water supply and sanitation systems, to reduce ecological damage and increase health security of the residents in the five participating cities in Russia. The NDB will support the Project through a Sovereign Project Loan up to USD 320 million. The content of the Project includes: i) constructing advanced facilities of water treatment, water supply network, water drainage network, sewage treatment, and storm water collection and treatment system; ii) improving process efficiency of existing infrastructure with advanced technology and equipment.

The Project is estimated to be implemented between 2019 and 2024. Suppliers for the Project will be selected through a competitive and transparent bidding process.

The Project will bring benefits of: (i) increased operating efficiency of water supply and sanitation systems, (ii) reduced growth of utilities tariffs for the population, (iii) reduced investments in capital repairs for rehabilitation of water supply and sanitation systems, (iv) significant reduction of environmental damage of Volga River with wastewater treatment, (v) increased health security for citizens with improved quality of water supply, (vi) easy maintenance of infrastructure built with application of advanced technology. The Project is categorized as “B” in accordance with the NDB Environment and Social Framework with limited adverse social and environmental impacts. Potential cases of land use during construction of pipelines will be regulated by the country system requirements. Appropriate compensation will be provided for land temporary use to the owners of the land. No conversion of natural habitats or negative impacts on biodiversity or indigenous peoples was found.