Dnipropetrovsk Metro Construction Completion Project

Country:

Ukraine

Project number:

41614

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

24 Jul 2012

Status:

Repaying

PSD disclosed:

05 Jan 2012

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering financing an extension of Metro Line I in the City of Dnipropetrovsk. The existing six-station line will be extended by four kilometres and three stations will be added in order to provide metro services into the City centre, serving areas of high urban density and land-use activity.

The project will achieve important institutional and regulatory improvements by devolving ownership of the metro operating company Dnipropetrovskiy Metropolitan from the central government to the City and by introducing a public service contract to ensure the sustainability of user oriented services over the long term.

Transition Impact

Company restructuring and decentralisation of municipal services: Ownership will be transferred to the City, to achieve the decentralisation of a key infrastructure asset and service. Moreover, the Corporate Development Support Programme will provide basic tools for modern metro management, including business planning and capital investment planning, and substantial training for key staff of the Company.

Framework for markets: The project will serve as an example of long term sustainable financial and organisational structure for major infrastructure assets. A key component of this will be the preparation of a public service contract (“PSC”) to establish performance-based service quality in exchange for continuing public support payments. The PSC will be a first in the City for any of its public transport operators. This work will be modelled broadly after the Ministry of Housing’s templates for PSCs in Ukraine and will build on work undertaken by the Bank with other Ukrainian cities (Lviv and Kiev) and their public transport operators. In addition, the project will enable the rationalisation of tariff setting policy and practices.

Private sector involvement: The project will investigate the opportunity to develop an integrated e ticketing system, whereby a private service provider operates the new ticketing system for the entire public transport system, on a long-term basis with incentives built in to achieve a high level of reliability and functionality. Typically, the service provider is paid a portion of revenues transacted through the system, a fact which sets up a strong incentive to ensure that the system functions consistently.

Energy Efficiency and Carbon Reductions: The investment in metro operations should lead to a significant modal shift away from cars and diesel buses to clean, high-capacity urban rail along the new extension of 4 km. Initial estimates by the Bank show an estimated reduction of 530 thousand tonnes of CO2 over the first 10 years of operation.

The Client

The Operation will be implemented by Dnipropetrovskiy Metropolitan and its Project Implementation Unit. Consultants will provide on-going assistance to the PIU with contract monitoring, supervision and reporting requirements.

EBRD Finance

A sovereign loan of €152 million to the Company, expected to be co-financed in equal proportion by an EIB loan.

Project Cost

The total project cost is €367 million including related technical cooperation funds.

Environmental Impact

The Project has been categorised level B, based on the findings of the initial environmental and social examination by independent consultants. The environmental and social due diligence is under preparation and is being developed concurrently with the preparation of the Ukrainian national Environmental Impact Assessment (OVNOS) required for the Project.

Potential impacts may include alteration of the groundwater levels, disposal of construction spoil, dust, noise and vibration impacts on the nearby communities and businesses. The due diligence will need to identify the extent and duration of such impacts and assess adequacy of the proposed design and engineering solutions, and also define additional measures to mitigate such impacts. The Environmental and Social Due Diligence will also need to identify all potential stakeholders of the project, analyse the impacts of the Project on such stakeholders and propose a Stakeholder Engagement Plan, which should clearly define modality and frequency for communication of Project-related information to affected parties.

Technical Cooperation

The following Technical Cooperation funds are envisaged as part of this project:

Pre-Signing:

  • Metro Line Extension Pre-Feasibility Study: €90,000 funded by the Bank.
  • Metro Line Extension Feasibility Study and ESIA: €450,000, funded by the Austrian Government.

Post-Signing:

  • Corporate Development Support Programme of Dnipropetrovskiy Metropolitan and public service contract development. €225,000, TC Funds, source to be identified.
  • Implementation and Procurement Support. €500,000, TC Fund, source to be identified.
  • Development of Electronic ticketing system. €120,000, TC Funds, source to be identified.
 

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

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

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.