Main financial instruments: grants and loans

Modernization of sewage treatment plant in Petrozavodsk (Phase I)

Brief description
The main source of water for the city is Petrozavodsk Bay of Lake Onega. At the same time the same bay is wastewater discharge object. Therefore, the wastewater treatment system must have higher requirements. In its current state structures adversely affect the aquatic environment of Lake Onega, the quality of treatment does not meet the domestic and international technical regulations. Sewage treatment facilities in Petrozavodsk, commissioned in 1979, are outdated morally and physically. Wastewater discharged after treatment into Lake Onega, do not meet the standards for the content of nitrogen, phosphorus and other elements, respectively, leads to pollution of the water body. That is why sewage water treatment plant (SWTP) can be attributed to the so-called environmental "hot spot" that should be significantly improved. In 2012 the Government of the Republic of Karelia signed an agreement by which the comprehensive reconstruction of water treatment facilities in Petrozavodsk took place. Now it became possible to conduct a comprehensive renovation of wastewater treatment plan

Project tasks:

  • ​aeration tanks reconstruction;
  • reconstruction of existing final settling tanks
  • installation of sludge pumps ;
  • introduction of chemical precipitation and
  • construction of 2 new final settling tanks.

Duration: 2012-2016 years

Expected costs of the I phase: 546 MRUB

Project parties:

  • Investor – OJSC «PKS».
  • Lender of capital - NEFCO and Nordic Investment Bank (NIB) (Finland).
  • Investor guarantee  - Government of RK.
  • Donors (grant holders) – Ministry of Environment of Finland, Northern Dimension Ecological Partnership  (NDEP)

Sources of finance for the I phase:

  • 252 MRUB. – borrowed funds of OJSC «PKS»,
  • 14 MRUB – own resources of OJSC «PKS».
  • 7 MEUR – ecological grants from Ministry of environment of Finland and NDEP.

Expected results
The project of reconstruction and modernization of WTP will last until the end of 2016.  As a result of the installation of modern equipment the reliability of wastewater facilities will increase, the level of pollutant discharges into Lake Onega significantly will be reduced and will meet international environmental requirements. It is also important to note that all refurbished, modernized and newly constructed facilities will remain the property of the city. After the completion of all planned works the reliability of structures will increase and full compliance with the recommendations of HELCOM in removing phosphorus will be ensured, namely, the reduction of its content to 0.5 mg per litre of wastewater, which is equivalent to a reduction of phosphorus discharge by about 75 tons per year.

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