The Project upgrades the quality of waste management, road maintenance and green landscaping services in Zagreb and enables its transition into a holistic, efficient and sustainable system with circular economy principles. The main expected project-level outcomes are stakeholder effects through the improvement in the quality of municipal infrastructure and services and environmental effects through a reduction in GHG emissions. At the sector level, the Project is expected to have replication potential for similar circular waste management initiatives in the region and encourage further investments. 

The Project provides financial and non-financial additionality. Financial additionality is provided through supporting the most sizable investment in waste, road maintenance and green landscaping space over the past 10 years in Zagreb and multi-faceted use of proceeds. Non-financial additionality derives from the application of IFC’s knowledge and experience in the waste management sector through investment preparation engagement, helping the Company to improve its capacity and operational standards.

This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because the proposed project is expected to have limited adverse E&S risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures, as described in the following sections. No IFC-financed activities are expected to result in economic or physical displacement of people.

Key E&S aspects associated with the project are: (i) adequacy of ZGH’s ESMS and its ability to assess and manage E&S risks and impacts across its subsidiaries and business lines per IFC PSs; (ii) labor and working conditions, occupational health and safety (OHS) and emergency planning; (iii) contractor management; (iv) pollution prevention, including solid and hazardous wastes and air emissions/odors; (v) water and energy efficiency; (vi) community health and safety including infrastructure safety, road safety, and life and fire safety (L&FS); (vii) stakeholder engagement and community grievance redress mechanism.