Project description
and objectives:
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The proposed project consists of financing a programme of works which will
cover infrastructure (to be financed by EIB) and the purchase of rolling stock
(to be financed by EBRD). EIB and EBRD contracts will be financed on a
parallel basis.
The objective of the project is to maintain the railway’s capacity and
increase its operating efficiency to enable it to handle current and projected
demand as economically as possible.
The proceeds of the EBRD loan would finance purchase of freight wagons and a
wheel lathe.
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Transition
impact:
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The restructuring of the state owned companies has been on the top of the
agenda of the IMF and the WB in Serbia. The government has been successful in
launching the reform through concrete actions, such as the adoption of the
Railway Law and establishment of a special unit responsible for a
restructuring programme which is a key element of this Act. The transitional
impact will be achieved through the following aspects of the project: (a) a
programme of labour severance; (b) the divestiture of non-core activities; (c)
network rationalisation; (d) the formal separation of infrastructure from
operations; and (e) the establishment of a Public Service Obligation (PSO).
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The client:
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Serbian Railways is responsible for railway operations in Serbia.
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EBRD
finance:
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The EBRD is considering a loan of EUR 60 million. In addition, grant funding
from EAR has been obtained for the project implementation support. Grant
funding is also being sought for the assistance in restructuring of Serbian
Railways.
The EIB financing will be in the form of a loan of EUR 80 million.
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Total project cost:
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EUR 162 million.
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Environmental impact:
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The environmental impacts associated with this investment are not considered
to be significant and will, most likely, be limited to ensuring the
environmental soundness of the freight wagons. Environmental due diligence
will be undertaken in accordance with the Bank’s revised Environmental Policy
and Procedures (July 2003) and in line with the Environmental Performance
Standards and Good Practices related to Railway Modernisation. A
representative from the Environmental Department will visit the site to
determine the level of the environmental work and consultation, if any,
required.
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Technical
cooperation:
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TC funds from EAR in an amount of EUR 1.3 million to assist with the
implementation of this project.
TC funding is being sought for the assistance in restructuring of Serbian
Railways with an estimated cost of EUR 0.75 million.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Lin O'Grady, Operation Leader: ogradyl@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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