Cultural Heritage Framework

Location:

Regional

Project number:

49640

Business sector:

Property and tourism

Notice type:

Private

Environmental category:

IESE

Target board date:

27 Feb 2018

Status:

Passed Final Review, Pending Board Approval

PSD disclosed:

26 Jan 2018

Project Description

Establishment of a Cultural Heritage Framework (the "Framework") with a volume of EUR 150 million to support projects in tourism which stimulate economic growth.

The Framework will include debt and equity financing to private sector entities, as well as loans to governments, municipalities, state or municipal-owned companies, for projects in Uzbekistan, Romania, Albania, Jordan, and the West Bank (the "Pilot Locations").

Cultural heritage is a vital resource for regional and community development and in many EBRD countries of operations is an untapped resource due to a number of challenges (such as underfunding, lack of expertise, poor accessibility and connectivity, lack of coordination and communication between multiple stakeholders, etc). EBRD is well placed to take a holistic and integrated approach in supporting cultural heritage as a driver for economic growth and employment, as well as sustainable tourism.

Within the Framework, EBRD would draw on its expertise in financing masterplan-led regeneration, refurbishment of historic buildings, infrastructure improvements. The Framework will also benefit from its ability to work across sectors, with both the private and public sector, and engage in policy dialogue with various stakeholders (governments, donors, consultants) in order to achieve the holistic approach.

Project Objectives

The over-arching aim of the Framework is to serve as a cross-sector catalyst for regional development by utilising cultural heritage resources in Pilot Locations to stimulate tourism and economic growth. This will be achieved through investments as well as policy and institutional engagement for the preparation and implementation of country-level action plans targeting cultural heritage sustainable management and commercialisation, as well as development of initiatives and models for sustainable tourism. Within the action plans, the Framework will promote private sector and community involvement.

Transition Impact

The Framework will contribute to two main transition impact qualities:

(1) "Competitive": competitiveness of tourism operations; and

(2) "Well-governed": through improved governance and management of cultural heritage sites, and their commercialisation. Investments under the Framework will directly support the individual competitiveness of local enterprises, infrastructure and localities, e .g. through capacity expansion, refurbishments or restructuring. This in turn is expected to enhance overall competitiveness and attractiveness of tourism in the target regions.

In addition, each country-programme will entail a policy engagement component with relevant authorities and local stakeholders. The policy activities will aim to identify key challenges, coordinate activities among stakeholders, and provide greater strategic guidance in order to strengthen tourism development around cultural heritage sites. In selected cases, additional transition qualities may be introduced at country level, in line with country strategy priorities and specific needs related to cultural heritage and tourism.

Client Information

Possible borrowers under the Framework will be private entities, governments, municipalities andstate owned companies. Under sovereign loans the responsibility for repayment will typically rest with the Ministry of Finance, municipality or utility company and require on-lending arrangements.

EBRD Finance Summary

EUR 150,000,000.00

Total Project Cost

EUR 150,000,000.00

Environmental and Social Summary

The Framework itself is not categorised under the Bank's 2014 Environmental and Social Policy, however, each sub-project will be categorised on a case by case basis and will be subject to individual environmental and social due diligence (ESDD) specific to the project and the client.

Based on the sub-project's risk and category, appropriate ESDD will verify that each sub-project is structured to comply with the Bank's PRs.

ESDD will be focused on the specific environmental and social issues of individual sub-projects, as well as implementation of appropriate and mitigation measures. Potential environmental and social issues could include: legal compliance, public consultation, life and fire safety, ecological sensitivity of the sub-project site, resettlement and economic displacement, labour and Occupational Health & Safety. Specific attention will be paid to cultural heritage protection, as well as its use for broad community economic and social benefit. This will be assessed through appropriate stakeholder engagement. Some subprojects may require consultant input to undertake ESDD and stakeholder engagement.

Technical Cooperation

The success of the Framework and the signing of sub-projects under the Framework depend on EBRD attracting grant funding to support:

(i) the initial assessment required during due diligence, to help develop action plans in collaboration with the relevant stakeholders;

(ii) the procurement of advisory services, capacity building and training (e.g. for MSMEs, craftsmen, to facilitate skills transfer, including for strategic business development) to be provided by knowledge partners and consultants;

(iii) community engagement; and

(iv) selective due diligence and monitoring.

TC needs and budgets would be determined based on an assessment of the needs of each subproject.

In respect to infrastructure transactions, non-reimbursable TC and non-TC grants pre-signing and post-signing would be required, to assist with the preparation of technical feasibility studies, procurement of goods and services, development of tender documentation, tender evaluation, contracting, as well as monitoring, and other related activities.
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Text of the PIP

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Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.