Project summary document

Project description
and objectives:

The EBRD is considering providing a senior loan of up to EUR 250 million (as part of a Senior Term Loan Facility of EUR 1,050 million) to finance the construction of R1 Motorway and cover transaction costs. The project is to design, build, finance, operate and maintain three sections of the 2x2 lane R1 expressway between Nitra and Tekovske Nemce, as well as the Banska Bystrica Northern Bypass, for a total length of 51.6 km in the Slovak Republic under a 30 year availability fee-based concession. This concession is pursuant to a concession contract between the Ministry of Transport, Post and Telecommunications of the Slovak Republic and the concessionaire, Granvia Consortium, a joint stock company incorporated under the laws of Slovak Republic that was set up by Vinci Concessions S.A. and ABN Amro Highway B.V.

This is the first concession contract awarded for a PPP structure for motorway projects in Slovakia. The motorway would be constructed using private financing and utilising private efficiencies; and the concessionaire would introduce new operational, managerial and commercial practices.

Transition impact:

The proposed projects will further demonstrate viability of motorway concessions in the transition region (following the success of the PPP road programme in Hungary). The key areas of the transition impact potential are (i) private ownership and operations of the key corridors in the region with the participation of the experienced foreign sponsors and (ii) demonstration effects associated with the replications of more private motorway concessions in the region.

The client:

The consortium Granvia, comprising the companies Vinci Concessions SA (70%) and ABN Amro Highway B.V.(30%) currently 100% owned by Vinci Concessions SA, has been formed as a strategic partnership to bid in the R1 motorway tender. Granvia offers a strong combination of local and international road construction expertise and financial standing with the main sponsor having an extensive international experience in project financing and development, construction and operation of international infrastructure projects.

EBRD finance:

A senior loan of up to EUR 250 million as part of a Senior Term Loan Facility of EUR 1,050 million.

Total project cost:

EUR 1,364,000,000

Environmental impact:

Environmental category and justification
The project has been screened A/0. In accordance with EBRD Environmental Policy 2003, Annex I, the construction of a new motorway or express roads is Category A project, which could result in potentially significant adverse future environmental impacts which, at the time of screening, cannot readily be identified or assessed. An Environmental and Social Impact Assessment (ESIA) has therefore been undertaken to identify and assess the future environmental impacts associated with the proposed project, identify potential environmental improvement opportunities, and recommend any measures needed to prevent, minimise and mitigate adverse impacts.

Information reviewed during the environmental appraisal
The environmental appraisal of this project has been based on the review of various environmental and social investigations carried out of the Project over its 15 year long preparation time span. The full documentation included the Environmental Statements and Environmental Impact Assessments (EIA) prepared under the Slovakian permitting process, Social Impact Assessment (SIA) permitting applications and decisions at the conceptual, zoning and building permitting stages. All these documents are available on the Ministry of Transport (MOT) PPP website - www.telecom.gov.sk (PPP Projects section).

Consideration of alternative routes and the selection of the route
Alternative route options and cumulative effects of the whole length of the R1 route were considered in a feasibility study undertaken in 1993. An update to the original study was performed in 2001. Five variants for Nitra to Caradice were considered and two variants for Banska Bystrica. The routes were evaluated and the final preferred routes were selected on the basis of the official feedback from the affected public bodies as well as the public comments collected within the process of preparation of the EIA reports. One adjustment to the routing near the village of Čierne Kľačany (sub-section Beladice – Tekovské Nemce) was decided during the Zoning Permit process.

Key environmental and social issues
The ESIA showed that the project would result in slight or moderate negative impacts during both the construction and operation. It also showed that the proposed expressway would have a number of significant environmental and social benefits, mainly arising from the diversion of transit traffic away from a number of cities, towns and villages along the route and through reduced congestion. This is expected to improve traffic and pedestrian safety as well as to reduce traffic-borne air emissions and noise disturbance in residential areas.

The most significant adverse impacts are expected to be associated with traffic disturbance and restrictions on local traffic as well as localised noise and air quality impacts. However, these impacts can be minimised and mitigated through road design features, abatement measures (such as noise walls), work and maintenance practices as well as management systems to be implemented by the Concessionaire. The land take required for the project is moderate and is associated with a few displacement issues.

Disclosure of information and consultation
A series of public disclosure and consultation procedures have been carried out in accordance with the Slovakian regulatory requirements in the course of the preparation and permitting process of the proposed expressway. Preliminary environmental studies (“Zamer”) were disclosed in each affected municipality and the public were invited to review and comment on them. The EIA’s were completed detailing the analysis of the potential environmental impacts of the motorway. These were published both on the Ministry of Environment’s website and at the local municipality offices and local public hearings were also held. Also as part of the Zoning Permit (DUR) and Building Permit (DSP) processes, each Permit application is disclosed to the public for comment and the final Permits are made publicly available.

At the request of the EBRD, an overarching non-technical summary (NTS) of the environmental and social issues associated with the project has been prepared and disclosed to public for review and comments by the MOT. The NTS includes also details on the project related public consultation and provides contact details for any Project related queries. The NTS is also available at EBRD website: http://www.ebrd.com/projects/eias/39432.htm

A Public Consultation and Disclosure Plan (“PCDP”), including a process for the management of grievances will be implemented by the Concessionaire during the construction and operation of the project.

Monitoring
An environmental and social monitoring plan satisfactory to the EBRD will need to be developed by the Concessionaire and carried out throughout the project. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing periodic Environmental and Social Reports prepared by the Concessionaire as well as through monitoring visits and external supervision reviews.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

None.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

Vinci Concessions : Isabelle REY
Tel: +33 1 47 16 35 87 – Fax: +33 1 47 16 36 36
Email : isabelle.rey@vinci.com

Ministry of Transport, Post and Telecommunications of the Slovak Republic
Námestie slobody 6
810 05 Bratislava
tel: +421 2 59 494 812
fax: + 421 2 59 494 777
Contact : Robert.Janik@telecom.gov.sk

EBRD contact:

Agnieszka  Lukasik, Operation Leader: lukasika@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com

Public Information
Policy (PIP):

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations.
Text of the PIP

Independent Recourse
Mechanism (IRM):

The EBRD has established the IRM to give local groups that may be directly and adversely affected by a Bank project a means of raising complaints or grievances with the Bank, independently from banking operations.
Guidelines for Making a complaint and the Rules of procedures