Montenegro:ZPCg Rolling Stock Renewal Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 41899

Status Repaying

Location

Montenegro

Business Sector

Transport

Notice Type

State

Project timeline

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

Project ID 41899

Status Repaying

Location

Montenegro

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

26 Oct 2010

Disclosure date

13 Aug 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 funds to finance priority upgrade of the passenger rail fleet operated by ZPCG – a national passenger rail operator in Montenegro.

In its current condition, the Montenegro passenger rail service is not sustainable beyond the short term since its ageing fleet is in a serous state of disrepair. The quality of service being provided has declined substantially in recent years, and as a result, passenger levels have fallen significantly. As the Government’s policy is that Montenegro should have a modern, viable passenger rail operator, the Government has requested EBRD support for the proposed priority upgrade of the passenger rail fleet.

Transition Impact

The proposed Project is expected to result in transition impact in the following areas:

Preparation and development of a Public Service Obligation (“PSO”) contract, which ensures the transparent and targeted budgetary support for rail operators running loss making passenger services while incentivising ZPCG to improve commercial management of its operations.

Introduction of adequate business planning and budgeting process to provide for adequate resource and timing allocation for the implementation of the adopted strategy for the rail infrastructure.

The upgrade of Montenegro’s passenger rail fleet with the emphasis on efficient use of the rolling stock and energy saving benefits of the project.

The Client

The Montenegro Railway Passenger Company (ZPCG), majority state owned Railways Passenger Company

EBRD Finance

Up to EUR 13.55 million sovereign guaranteed

Project Cost

EUR 16 million

Environmental Impact

The Project has been categorised “B” as per the 2008 Environmental and Social Policy. It will entail significant Health and Safety benefits, as it will contribute to the phasing out of obsolete equipment (a major accident occurred in 2006).

Due diligence was undertaken by the Bank both in respect of the particular activities to be financed by the Bank and at corporate level. Main findings are the following:

Equipment to be purchased under the Project will comply with all applicable EU standards, including those pertaining to noise protection
The Company is close to obtaining certification of an integrated quality / environment / Health and Safety management system in line with the requirements of ISO 14000
An Environmental and Social Action Plan (ESAP) is being drafted to sanction the environmental and social commitments of the Company and its implementation will be monitored by the Bank.

Technical Cooperation

It is envisaged that the technical cooperation support will provide assistance with the following:

1) Procurement and implementation support; and

2) Institutional Strengthening (Business planning and preparation of the PSO contract).

Transition impact

ETI Score:60

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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