Astana Bus Project

Location:

Kazakhstan

Project number:

47454

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

28 Oct 2015

Status:

Repaying

PSD disclosed:

12 May 2015

Project Description

The EBRD is providing a senior loan of up to EUR 65 million to LLP 'Astana LRT', a municipal urban transport company. The EBRD loan will be used to procure up to 200 modern low-floor city buses.

Transition Impact

ETI score: 60

The transition impact for this Project is expected to stem from the following activities.
Private sector participation: A significant number of buses is expected to be eventually operated by the private sector and selected by route tendering. This will lead to greater competition from private bus operators, which over time should result in an improvement in the performance of the municipal operator.
Institutions, laws and policies that promote market functioning and efficiency: Use of Public Service Contracts ('PSC') to level the playing field between public and private operators. The use of a robust PSC structure with the future operators of the new fleet will deepen the Cityis ability to provide proper regulation of the public transport sector.

The application of the PSC approach to all operators will allow for fairer competition between the dominate public sector company and the various private operators. This should lead to improved service for users.
Setting standards for corporate governance and business conduct: The private sector operators in Astana are currently not generally run according to high corporate standards, in terms of organisation controls, accounting and management controls. The new leasing arrangements, to be embedded within the new PSCs, will introduce a higher level of corporate governance by the private sector.

A Corporate Development Programme including improvements in corporate governance standards and business plans may also be available under the project

 

Client Information

ASTANA LRT LLP

The municipal urban transport company 'Astana LRT' (the 'Company'), was initially established to implement the light rail transit project in Astana. Gradually, Akimat of Astana has tasked the Company with a number of projects in the public transport sector including bus route network management, transport modelling, introduction of automated fare collection system, paid parking system, etc.

EBRD Finance Summary

EUR 59,208,268.00

A Senior loan of EUR 65 million, or equivalent in KZT, provided in two tranches for 10 years including 3 year grace period. The loan will be backed by a project support agreement with the Akimat of Astana.

Total Project Cost

EUR 89,308,272.00

EUR 75 million.

Environmental and Social Summary

The proposed project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing with EBRD TC funds, includes an independent third party environmental and social audit to assess the Clientis management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bankis Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. Information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation and Grant Financing

Pre-SigningTechnical and economic due diligence (EUR 150,000, donor funds, non-reimbursable) to include: (i) preparation of a route demand and operational analysis; (ii) a technical review of the proposed bus operations to establish the route structure, demand, revenue and operational cost projections; (iii) a preparation of technical and functional specifications of the new bus fleet to be procured; (iv) a financial and economic review of proposed investments including confirmation of cost estimates.
PSC, bus leasing and depot contract preparation (EUR 75,000, donor funds, non-reimbursable).
Environmental and social due diligence (EUR 20,000, non-reimbursable) to include an environmental and social analysis of the Project.

Post-Signing

Implementation and Tender Support (EUR 250,000, donor funds, non-reimbursable) to include the procurement of the fleet including assistance with technical acceptance of buses, spare parts, documentation and training.
Independent pre-shipment inspection of buses (EUR 100,000, donor funds, non-reimbursable).
Corporate development support (EUR 50,000, donor funds, non-reimbursable) to include: (i) review of the existing practices of private operators and assistance in improving organisation controls, accounting and management controls; (ii) bus operation and maintenance safety training and guidelines.

 

Company Contact Information

Mr Talgat Ardan,
+7 7172 577103
LLP 'Astana LRT' 34, Turan street, Astana

Implementation summary

The operation enabled the Company to procure 210 modern city buses to be used in Nur-Sultan, a rapidly growing capital city of Kazakhstan. The buses financed by EBRD together with 358 buses financed by Commertzbank (France) have made it possible to cover the rapid growth in demand for public transportation in Nur-Sultan. Additionally, the Company has built a new depot in line with international standards for procured buses and introduced e-ticketing system in 2017 with flexible tariff. Currently, the majority of ridership is reported which in turn has improved the general governance and planning for the City.

The Project also ensured adherence to strict environmental, energy-efficiency and social standards. The Company has fully implemented the Environmental and Social Action Plan. The Company and the City have efficient EHS management system, public communication, consultation and disclosure policy that in general meets the EBRD's requirements and that environmental and social performance level under the project can be considered as good with positive monitoring results. The energy efficiency remains an important objective for the City and the Borrower so in 2019 the Company has purchased 100 electric buses to operate in the bus network of Nur-Sultan.

As a part of Transition impact, the Project intended to introduce the bus-km tariff mechanism and wider participation of private sector. The Project achieved some of the initial objectives whereas further progress is subject to, among others, further cooperation with the Government of Kazakhstan and in particular with Transport Committee under the Ministry for Industry and Infrastructure Development and Akimat of Nur-Sultan.

PSD last updated

26 May 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

Share this page: