Project description
and objectives:
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The objectives of the proposed project will be to:
(i) finance municipal buses, spare parts and workshop equipment
(ii) reform the regulatory framework for public transport in Tbilisi.
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Transition
impact:
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Transition impact will be achieved in the following way:
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Commercialisation
The project will support the City and the
Company in developing a Public Service Contract (PSC) to replace the annual
city transfer payment to the Company. This will establish transparent
standards for the provision of public transport services and shift it from an
annual subsidy to a transparent, multi-year “payment-for-service”. Assistance
will also be provided to prepare a Business Plan to increase operational
efficiency, improve financial reporting by adopting IFRS, and strengthen
capital investment planning capacity.
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Private Sector Participation
The project will support the
development of the private transport sector by developing transparent
procedures for route tendering.
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Demonstration effect
The project will demonstrate the added
value of renewing an urban bus fleet in the context of a broader sector reform
in conjunction with commercialisation of a municipal bus company.
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Standards
Procurement standards will be improved through
application of the Bank’s Procurement Policies and Rules in relation to the
purchase of both the new and used buses, the PSC will improve corporate
governance since it clearly defines and allocates responsibilities for service
delivery, finances, safety, tariff setting, passenger control, traffic
control, marketing, ticketing, fare evasion and handling customer complaints.
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The client:
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The Tbilisi Bus Company.
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EBRD
finance:
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EUR 5.0 million loan to the Tbilisi Bus Company.
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Total project cost:
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EUR 8.0 million.
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Environmental impact:
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Modernising the bus fleet will decrease traffic congestion, increase traffic
safety and improve air quality in Tbilisi. The tender specifications will
address air emission and fuel efficiency requirements in line European Union's
environmental standards for urban buses.
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Technical
cooperation:
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Pre-signing:
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Assistance to prepare:
(i) an audit and restatement of the
Company’s accounts
(ii) a Business Plan
(iii) a tender for the supply of buses
(iv) credit analysis
of the City of Tbilisi.
Post-signing:
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A Public Transport Restructuring Programme which will comprise advice on:
(i) further restructuring of the public transport sector
(ii)
improving the private sector route-tendering regime
(iii)
negotiation of the Public Service Contract.
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Assistance to the Company to strengthen planning, accounting, management, and
operational capacity.
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A Municipal Financial Management and Budget Training Programme to strengthen
the City’s MIS and capital planning and budgeting capacity.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Thea Kokhreidze, Operation Leader: kokhreit@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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