Montenegro CGCO (Port of Bar) Pre-privatisation Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 41813

Status Complete

Location

Montenegro

Business Sector

Transport

Notice Type

Public

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 41813

Status Complete

Location

Montenegro

Business Sector

Transport

Notice Type

Public

Environmental Category

Approval Date

23 Nov 2010

Disclosure date

23 Sep 2010

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Montenegrin

Project Description

The EBRD is considering providing a €8.5 million sovereign loan to the Republic of Montenegro to finance priority capital expenditure of the AD Container Terminal and General Cargo Operator (the “Company”) at the Port of Bar. The proceeds of the loan will be used to purchase cranes and cargo handling equipment and to and to support the Company’s voluntary redundancy programme. The Company is majority state-owned and the proposed investments will be made with a view to facilitating the Company’s privatisation.

Transition Impact

Supporting the privatisation process of the container and general cargo operator would enhance the overall competitive advantage of the Port of Bar and increase its efficiency, thus allowing the Port to: a) fulfil its strategic role for the country; b) ensure its long-term viability and financial self-sustainability; and c) attract new business for the country. Having a strategic private investor operating the key terminal facilities at the Port would also foster competition and create value via enhanced transparency and increased efficiency in both operational and financial performance of the Port as a whole.

The Client

Republic of Montenegro/Ministry of Maritime Affairs and Transport;

EBRD Finance

€8.5 million sovereign loan.

Project Cost

€10.7 million.

Environmental Impact

The project has been categorised B in accordance with the EBRD Environmental and Social Policy 2008. The priority investment programme to purchase cranes and cargo handling equipment and financing of a voluntary redundancy programme will result in some adverse environmental and social impacts that can be addressed through mitigation measures. The due diligence is still on-going.

As part of the due diligence for the project a recent Environmental Audit by an independent consultant was reviewed and a site visit was also undertaken. A review of the Collective Agreement and draft programme for the voluntary redundancies was undertaken and discussions were held with union representatives. The Collective Agreement includes detailed provisions for employee rights in the case of collective redundancies.
The Company has only recently been established so maintenance and port operational controls and procedures are based on pre-existing procedures. Emergency response arrangements are in place through a contract and plans have been approved by the regulatory authorities. Permits are in place for the handling of dangerous materials.
Due diligence has confirmed that a dedicated team will be established to develop and implement the Projects Retrenchment Plan compliant with the Collective Agreement and Banks requirements. A draft Environmental and Social Action Plan (ESAP) has been prepared for the project to address the Bank’s PRs. The ESAP includes requirements for: a Retrenchment Plan that meets EBRD PR 2 requirements; implementation of an Integrated Management System; provision of a Stakeholder Engagement Plan; occupational health and safety audit and the review and update of emergency response procedures.

The Company will be required to carry out the Project in compliance with National, EU environmental regulations and standards and the Bank’s PR’s as well as to provide the Bank with annual environmental and social reports, including updates on the ESAP, and notification on any material accidents of incidents.

Technical Cooperation

None.

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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