GrCF- Varna Climate Resilience Infra Project

Location:

Bulgaria

Project number:

49366

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

12 Dec 2017

Status:

Board Approved

PSD disclosed:

20 Dec 2017

Translated version of this PSD: Bulgarian

Project Description

A €10 million loan to the City of Varna (City) to finance integrated infrastructure investments. The project falls under the Green Cities Framework (GrCF) and is part of a broader programme for improving the urban infrastructure of the City, jointly financed by the European Structural and Investment Funds via Operational Programme Regions in Growth 2014-2020.

Project Objectives

Rehabilitation of key segments of the water and waste infrastructure in Varna, strengthening the city's climate resilience and improving resource efficiency. Procurement of vehicles for on street parking control.

Transition Impact

Strong Good

The transition impact of the project will come from the alignment of its objectives with the GrCF, that has as primary goal achieving significant environmental improvements and promote the green transition quality within relevant cities. The GrCF also aims to build necessary capacity and facilitate better coordination, improve the governance, enhance operational efficiency and financial sustainability of the targeted investments and initiatives.

Client Information

CITY OF VARNA

The City of Varna is the third largest municipality in Bulgaria with a population of 473 thousand people. It is an important commercial, administrative, education and cultural center.

EBRD Finance Summary

EUR 10,160,615.00

A senior unsecured long-term investment loan of up to EUR 10.2 million to the City of Varna.

Total Project Cost

EUR 39,338,927.00

Total Project cost is estimated at EUR 39.3 million, to be financed by the proposed EBRD loan, grant funding from Operational Programme Regions in Growth 2013-2020 and the City's own budget.

Environmental and Social Summary

The project has been categorised B in accordance with EBRD’s 2014 Environmental and Social Policy. It will improve the quality of the municipal services and climate change resilience, and reduce risks of flooding and pollution from seasonal overflows in Varna. No land acquisition and resettlement or biodiversity impacts are expected as the works will take place in the urban environment along the existing roads; however precautions and planning will need to be undertaken by the contractors. The project is consistent with the GET approach, and the GET share is 100%. The City's environmental objectives will further be determined and supported by the preparation of the Green City Action Plan.

The ESDD was carried out by independent consultants as part of the Feasibility Study and included a corporate E&S audit of the management systems and operation of the City and the Water Company and an assessment of potential E&S impacts and benefits of the proposed investments, and a draft ESAP has been prepared to structure the project to meet EBRD Performance Requirements and will be agreed with the City of Varna prior to signing.

The replacement of drinking water pipes will significantly reduce risks of contamination of the water inside the pipes, provide uninterrupted water supply, reduce water losses which in turn reduce the consumption of electricity for pumping, reduce leaks and consequently reduce the risks of landsliding and terrain/street/sidewalks subsidence caused by water. Replacement/construction of new wastewater pipes will result in significant reduction of the risks of soil and groundwater contamination, reduce risks for the community, reduce flood risk through the physical separation of municipal wastewater pipes from storm water collectorsi. The Bulgarian competent authorities REWI Varna have carried out an environmental screening procedure in line with EU EIA Directive and Habitats Directive and concluded that neither Environmental Impact Assessment (EIA) nor Appropriate Assessment (AA) is required for this project. The City of Varna management systems are certified by ISO 9001 and ISO 14001 on quality and environmental management, and the City has adequate Human Resources policy and system, but no formal occupational health and safety (OHS) management system is in place. Key health and safety and environmental risks will be associated with the construction phase and will require careful management of the contractors, and the contractors will need to prepare and implement a Construction Environmental, Health and Safety and Social Management Plan. The ESDD also ascertained that the drinking water quality and effluent quality discharges will comply with the relevant EU Directives. Stakeholder Engagement Plan (SEP), including a grievance mechanism, is currently under preparation.  A non-technical summary (NTS) was agreed and prepared.  Both SEP and NTS will need to be disclosed by the City.

NTS: English | Bulgarian

Technical Cooperation

EUR 74,000. Technical Validation and Environmental & Social Review to assess the technical and financial soundness of the proposed investments and support environmental and social due diligence as well as assessment of the environmental benefits. This TC will be financed by EBRD Shareholder Special Fund ("SSF").

EUR 300,000. For preparation and finalization of GCAP, which will prioritize investments in the City in pursuit of the green agenda. This TC will be financed by the SSF or an international donor.

Company Contact Information

Hristo Ivanov
+359 52 820 231

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

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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.