Good progress of the St Petersburg Neva Programme

Interview* with Jan Johansson, Senior Manager, NIB

In spring 2009, NIB and a number of other international financiers participated in financing the Neva Programme implemented by the water utility company Vodokanal of St Petersburg. The Northern Dimension Environmental Partnership (NDEP) extended a grant of EUR 24 million to support this project.

The overall investment of EUR 562.6 million is financed by the federal, City and Vodokanal’s own resources totalling EUR 461.2 million, IFI loans of EUR 60 million and additional bilateral grants of EUR 17.4 million. The environmental effect of the programme will be based on removing 860 tonnes of phosphorus, 1,060 tonnes of nitrogen and 6,980 tonnes of BOD every year from St Petersburg wastewater discharges into the Baltic Sea.

– After the Flood Protection Barrier, St Petersburg Neva Programme is the largest project in the NDEP portfolio. Could you say a few words to exemplify the sheet magnitude and complex structure of this investment?

“This is a huge project. It includes two 12-kilometre tunnels with a diameter of 4 metres built at depths of 40 to 90 metres, over 5.5 kilometres of micro tunnels, 28 shafts, a unique wastewater pumping station located 90 metre below ground to sustain wastewater flow in the tunnel, and the rehabilitation of the Northern Wastewater Treatment Plant (NWWTP). The Neva Programme will help eliminate direct discharges by some 300,000 cubic metres a day. This is comparable to the effect of launching the South-Western Wastewater Treatment Plant in 2005 (330,000 cubic metres a day).”

– How would you describe the latest developments?

“The programme has entered its final phase and is proceeding more or less in line with the schedule. The construction of the tunnel collector has basically been completed. We can be fairly confident that all major facilities will be completed by mid-2014, as scheduled. The NDEP financed pumping station should be in operation by the end of 2013.”

– Which part of the overall construction technically most challenging?

“Undoubtedly, this is the wastewater pumping station. This pumping station has no analogues in the world. The water and wastewater utility company Vodokanal of St Petersburg has involved the best available scientists and engineers to design and construct the station.”

– SUE Vodokanal of St Petersburg is constructing two parallel tunnel collectors. What is the reason for the second line? How much of the existing tunnelling is already in operation?

” A reserve/parallel line of a sewage collector is always advised to be built to avoid a potential environmental disaster in case the collector breaks down. This is especially true for large cities, like St Petersburg, where the impact of such disaster can be enormous. In case of the Northern Tunnel Collector, its first line is in operation. The collector’s second line has basically also been completed by now and will be launched after the wastewater pumping station has been completed and commenced.”

– The Neva Programme has received the largest ever NDEP grant totalling EUR 24 million. Please could you tell us how the NDEP funded component is proceeding?

“The NDEP component is proceeding generally in line with the schedule. A large portion of the funds has already been used in the procurement of equipment for the wastewater pumping station. The remaining part is expected to be used to acquire equipment for the NWWTP by the end of this year. There could be some further delays in implementation due to complexity of the project and time needed to draw technical specifications. We expect those to be done within a couple of months.”

– Would you say that operating such a complex project structure with so many players is an asset or a hindrance to the overall implementation?

“Of course, the more players, the more difficult is the implementation. The Programme Steering Committee is doing a very good job coordinating the efforts. And the professionalism and dedication of the parties involved, particularly the Vodokanal Project Implementation Unit let the project run rather smoothly.”

– Finland and Sweden are the key international partners. Could you provide more information on the type of contracts and amounts signed with Swedish and Finnish companies so far?

“Invitations for all tenders in relation to this programme have been published in the Swedish and Finnish information networks. Nevertheless, the interest from Swedish and Finnish companies to bid for the larger supply contracts has so far been rather limited. Anyhow, some supply contracts have been awarded to the Finnish companies Watem Oy, Onninen Oy and KSB Finland. Swedish SWECO International AB has got a consulting contract (for the development of the NWWTP preliminary design. The Finnish Ramboll Oy has got a consulting contract to serve as a management consultant for the programme.

Two large supply contracts for equipment supply to the NWWTP are still up for grabs and we are confident that both Finnish and Swedish companies will actively bid for those. One package is to be financed by Sida so that contract will be awarded to a Swedish supplier due to nationality restriction.”

– What is NIB’s experience of working with SUE Vodokanal St Petersburg and perhaps your own previous impressions while working for the Swedish Consulate in St Petersburg? What is their unique method of simply getting things done?

“NIB has a longstanding relation with Vodokanal of St Petersburg that stretches over 10 years. Vodokanal has certainly gained very much experience from working with international financing and implementing large-scale investment programmes during this time. The personal dedication of Vodokanal’s Director, Mr Felix Karmazinov, to continuously develop the business, improve the services to the inhabitants and the company’s environmental performance has also been a very important factor of the success.”

*The interview was published in the newsletter NDEP News, July 2012.

For more information about the Northern Dimension Envrionmental Partnership click here.