The EBRD is considering providing a loan of up to EUR 14.2 million to the City of Plovdiv. The loan will be used to support the road rehabilitation and construction works for four city boulevards.
The Project will enable the City of Plovdiv to rehabilitate and enhance important segments of the urban road infrastructure, thereby improving travel times, enhancing road safety and reducing congestion. All rehabilitated road segments will feature new bicycle lanes that will complement the planned expansion of the bicycle routes in Plovdiv, thus contributing to the city's sustainable transport goals.
1) Promoting private sector involvement in the provision of public services
The Bank will support the City of Plovdiv in structuring, tendering out and implementing a long-term contract for performance-based management and maintenance of road infrastructure ("PMMR contract") with a private contractor. Through outsourcing the road management and maintenance to a private sector operator, the City will achieve more efficient and sustainable road infrastructure in Plovdiv.
2) Market expansion
Through supporting the implementation of an innovative PMMR contract in Plovdiv, the Bank will promote the development of the market segment for incentive-based and long-term road rehabilitation and maintenance services in Bulgaria.
3) Improved governance and budgeting
Through the PMMR contract, the City's experience and capacity to plan, implement and manage complex, long-term contracts will be enhanced. A more predictable multi-year contract for road maintenance, will also improve the financial planning and budgeting practices of the municipal administration.
4) Successful demonstration of an innovative contract for sustainable urban road management and maintenance
The PMMR contract in Plovdiv will be a pioneer project for Bulgaria in the area of urban infrastructure maintenance and management. As such, it is expected to have a strong demonstration effect for other municipalities in Bulgaria and the region.
5) Improved economic inclusion of less affluent urban areas
The Project is addressing the particular problem of economic exclusion of at least one poor neighbourhood. By introducing walkways, easy crossings at road junctions, and bicycle lanes along the rehabilitated road segment, the Project will allow the young and economically-active member of this neighbourhood to have better, non-motorised, access to urban areas with better employment opportunities, healthcare and educational facilities.
6) Improved framework for markets
The Bank will assist the City in improving its existing public service contracts with urban transport operators so as to make them compliant with best industry practices and the relevant EU regulations.
CITY OF PLOVDIV
EBRD Finance Summary
A long-term investment loan in the amount of up to EUR 14.2 million.
Total Project Cost
The total project cost is estimated at EUR 15.3 million. The City's own contribution to the Project will amount to EUR 1.1 million.
Technical Cooperation and Grant Financing
- EUR 15,000 for conducting a feasibility study to assess the City's readiness to structure and implement and PMMR contract and the private sector interest to participate in such contractual arrangements (EBRD-funded)
- EUR 150,000 to assist the City in structuring, tendering out, implementing and monitoring the execution of PMMR contracts (Donor-funded)
- EUR 20,000 to assist the City in undertaking a baseline study for social exclusions and labor market participation in the identified deprived neighborhood in the City of Plovdiv (Donor-funded).
Company Contact Information
Square Stefan Stambolov 1, 4000 Plovdiv, Bulgaria
The Project enabled the City of Plovdiv to rehabilitate and enhance important segments of its urban road infrastructure, thereby improving travel times, enhancing road safety and reducing congestion. All rehabilitated road segments feature new bicycle lanes that complement the planned expansion of the bicycle routes in Plovdiv, thus contributing to the city's sustainable transport goals. The Project has also addressed the particular problem of economic exclusion of at least one poor neighbourhood. By introducing walkways, easy crossings at road junctions, and bicycle lanes along the rehabilitated road segment, the Project allows the young and economically-active members of this neighbourhood to have better, non-motorized, access to urban areas with better healthcare, education and employment opportunities. Initially, total project costs amounted to EUR 15.3 million (VAT excluded), however changes in the detailed design and the need of additional construction works, resulted in an estimated additional EUR 3.1 million increase in project costs to reach completion. Construction works on the rehabilitated boulevards are completed and acceptance protocols signed. The works on the new Severen boulevard are 90% complete.
The project also ensured adherence to strict environmental, energy-efficiency and social standards. The City has fully implemented the Environmental and Social Action Plan on time.
TI achievements are the signing of revised, EU-compliant PSCs that have been signed with all urban transport companies. Plovdiv's contractual arrangements with its private bus operators were transformed. These revisions addressed some material flaws of the old PSC structure, such as the lack of predictable price adjustments, as the old methodology did not provide for an indexation-based formula.
PSD last updated
14 May 2021
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