Project description
and objectives:
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The objectives of the project would be to finance the purchase of up to 130 new buses for the Regia Autonoma de Transport Brasov (the Company) and to finance a street upgrading programme with the City of Brasov (the City).
Currently, the EBRD is considering extending a financing to the City of Brasov to complement an existing loan signed in 2005. The operation will enable the City to continue a comprehensive street rehabilitation programme, along key public transport corridors in the City centre, financed by the original loan.
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Transition
impact:
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Demonstration effect
The team will explore with the City and the Company, the possibility to structure the loan without a full financial guarantee from the City, which would then be the Bank’s first such municipal loan in Romania. As such the Operation would be the first transaction where the Bank would lend directly to a municipal transport company in Romania.
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Support to the corporatisation of the Company and organisational improvements
Transition impact will be delivered through restructuring of the public transport network; restructuring of the Company to adapt to the new service model and reduction of transport modes, and increased productivity and possible out-sourcing of services to realise efficiencies.
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Client-Supplier Relationship through the Public Service Contract (the PSC) The Operation would support the development of one of the first Romanian comprehensive PSCs for a public transport company. The PSC will define the scope of services provided by the Company and will set the level for service payments by the City for the services it purchases. The service payment replaces the system of direct, untargeted subsidies, and provides incentives for the Company to improve its financial and operational performance.
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Development of Regulatory Framework and Institutional improvements
The consultants for the technical and environmental due diligence will review the regulatory and institutional framework for public transport in the City and provide recommendations how to structure and develop the central public transport unit (authority) in the City.
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The client:
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- Regia Autonoma de Transport Brasov (the Company)
- The City of Brasov (the City)
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EBRD
finance:
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The project comprises the following facilities:
- Up to EUR 15 million senior loan to the Company
- Up to EUR 15 million loan to the City
- Up to EUR 7.5 million additional finance to the City
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Total project cost:
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The total cost of the project has been estimated to EUR 45 million.
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Environmental impact:
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The project was screened B/1 requiring an Environmental Analysis and audit.
The proposed project will contribute to improving public transport reliability, safety and efficiency, will reduce congestion, and help maintain the market share of public transport, with associated air quality benefits. The environmental investigations, which are currently underway, will identify all potential environmental impacts and develop an environmental action plan (EAP), to ensure compliance with both national and European Union environmental, health and safety requirements
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Technical
cooperation:
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Pre-signing
Technical and Environmental due diligence (€60,000), to be financed under an existing framework contract with DHV, i.e. Framework for Municipal and Environmental Consultancy Services (Phare Region).
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Post-signing
Project management and institutional building in preparation for EU accession (€300,000) subject to donor interest.
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Dana Craciunescu , Operation Leader: craciund@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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