Buzau Urban Road Management

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 43019

Status Cancelled

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

Private

Project ID 43019

Status Cancelled

Location

Romania

Business Sector

Municipal Infrastructure

Notice Type

Private

Environmental Category

Disclosure date

01 Nov 2011

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: Romanian

Project Description

The EBRD is considering providing a loan of up to €30 million to the company that will win an open international tender to rehabilitate urban roads and related infrastructure in the City of Buzau.

The investment will be used for the rehabilitation of 46 km of roads and pavements in the City under a long-term (approximately 12 years) performance-based Design-Build-Finance-Operate (DBFO) type contract.

The Project will improve journey times, road and pavement conditions for commuters, road and pedestrian safety, and reduce overall costs of maintaining the road network. It will also extend the City experience with long-term availability based contracts and will allow for more efficient use of public finances. This will be the City’s second availability based contract, the first being a 10 year ESCO contract covering street lighting signed in 2006.

The intention is to develop the proposed transaction under the Urban Road Management and Rehabilitation Framework (OPID 41761) as it is a part of the Bank's systematic approach to rolling out performance-based management and maintenance of roads (PMMR) contracting in Romania.

Transition Impact

More widespread private sector participation: The project will result in private sector involvement in road management. A competitively selected company will be responsible for rehabilitating the roads and pavements and keeping the roads and pavements in good condition for the entire contract period (minimum 10 years) in exchange for regular availability payments to be paid by the City.

Benefits will also be derived from experience with the best international practice DBFO contracting to be shared by experts in the field of outsourced road rehabilitation and maintenance.

Opportunity to demonstrate performance-based contract at the urban level, to be financed directly with the private sector – this project would be the first of its kind anywhere in the region. Its preparation would provide an example for many other municipalities seeking to transform the way urban roads are financed, managed and maintained. Such contracting may be replicated in other areas of municipal services to the benefit of the City and to increase efficiency of public funds usage.

The Client

The Company will be determined through tendering procedures acceptable to the Bank. That is likely to be an SPV formed by either a larger construction company experienced in road PPPs, or a consortium made up of a road contractor and a road management company experienced in output-based contracts.

EBRD Finance

Senior loan up to €30 million.

Project Cost

Total project cost is currently estimated at €45 million.

Environmental Impact

Categorised B. This project is expected to result in improved journey times and better road and pedestrian safety. The main environmental and social risks are likely to relate to safety during construction and short-term disruption to residents and businesses. There may be scope to address gender opportunities through the project, and ESD will discuss this with the client.

Technical Cooperation

Pre-signing

Environmental and Social Due Diligence. €20,000, MEI funded, non-reimbursable.
Tender Strategy Definition for Performance-Based Urban Road PPP for Rehabilitation and Maintenance. €20,000, MEI-funded, non-reimbursable.
Tender Design and Support for Performance-Based Urban Road PPP for Rehabilitation and Maintenance (Note: This TC will continue into the post-signing period) €350,000. TC Funds, non-reimbursable.

Post-signing

A Lender Technical Monitor will be paid for by the private road contractor under the terms of the loan.

Transition impact

ETI Score:80

PSD last updated

21 Jan 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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