Balti Trolleybus Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

18 Sep 2012



PSD disclosed:

10 Jul 2012

Translated version of this PSD: Romanian

Project Description

The EBRD is considering providing a loan of up to € 3 million to the Municipal Enterprise “Balti Trolleybus Department” (the “Company”) to improve the quality of public transport services and for the modernisation of the trolleybus fleet in the City of Balti. The Project consists of acquiring up to 23 new trolleybuses, spare parts, power supply infrastructure components and purchasing essential maintenance equipment. The project will include commercialisation of trolleybus services through signing a Public Service Contract (“PSC”) between the City and the Company to improve the services of the Company as well as a corporate development programme for the Company through a twinning arrangement.

Transition Impact

Transition impact will be delivered through the following:

  • Framework for Markets
    The Project will introduce a transparent multi-year contractual framework between the City and the Company in the form of a PSC. The multi-year PSC will be based on commercial principles and will establish a link between operator’s performance and the payment received from the City, as it will be estimated on a cost per vehicle kilometre basis with annual indexation, implementation of an agreed service plan and deviations from agreed quality standards. The contract will provide a major incentive for greater cost efficiency and higher quality in the provision of public transport services. It will increase transparency and accountability in the relationship between the City and the Company through a clear division of rights and responsibilities.
  • Demonstration Effect of Successful Restructuring
    The Project will demonstrate the ability to mobilise investment funds on a non-sovereign basis through an appropriate contract structure in conjunction with commercialisation of a municipal company.
  • Improved transparency and corporate governance
    A Corporate Development Programme will equip the Company with a long term Business Plan, aligning operational focus towards a client-oriented approach through clearly defined goals and transparent management performance assessment. Financial reporting in accordance with IFRS; and annual financial and environmental, social health and safety reports to improve corporate governance and transparency
  • Performance improvement and cost savings
    The renewed trolleybus fleet and maintenance facilities will enable the Company to improve the reliability of trolleybus services by increasing delivered trips from 80 to at least 98 per cent according to a plan while reducing the cost of maintenance.
  • Energy efficiency and emission reduction
    The Company will reduce energy consumption by nearly 480 million kWh reaching a reduction in carbon emissions of 2,234 tonnes of CO2 during project implementation period.

The Client

Municipal Enterprise “Balti Trolleybus Department”, a municipally-owned trolleybus company serving the City of Balti.

The City of Balti is the country’s second largest in terms of area and economic importance, and is the third largest town in terms of population (ca. 149,000 inhabitants).

EBRD Finance

EBRD expects to provide a loan to the Company of up to €3 million, guaranteed by the City of Balti.

The project is expected to be co-financed by the EU Neighbourhood Investment Facility via a capital investment grant of€1.6 million.

Project Cost

Total project cost amounts to €4.6 million.

Environmental Impact

The Project has been categorised B in accordance with the Bank’s Environmental and Social Policy 2008. Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department, based on a review of the Company’s corporate management systems; relevant information provided by the Company; and a site visit and discussions with the Company’s personnel to evaluate the current operational performance and the risk management plans for the planned investment programme.

The investigation showed that the potential future adverse impacts of the project will be site specific and addressed through appropriate mitigation measures. The transaction will enable Balti municipality to modernise its trolleybus fleet and, hence, improve the quality of public transport services. The project implementation is limited to urban areas within the boundaries of the City and no sensitive ecological receptors or protected zones are affected. It is confirmed that the project will not have adverse social impacts to local communities or other project affected parties, while a number of very tangible environmental and social benefits are likely to arise.

The due diligence confirmed that the Company has efficient public communication, consultation and disclosure policies that in general meets the EBRD's requirements. In order to avoid, minimise and mitigate the potential adverse Environmental and Social (E&S) impacts of the project and ensure full compliance with national regulations and EBRD's Performance Requirements (PRs) an Environmental and Social Action Plan (ESAP) has been developed to address the necessary improvements in the Company's E&S management systems.

The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.

Technical Cooperation


  • Technical due diligence (€35,000 funded by the Bank) included:
    (i) demand for trolleybus services and competition in the market;
    (ii) the Company’s organisation of operations, structure and management;
    (iii) the condition of the related infrastructure and the fleet; and
    (iv) the project scope and cost estimates.
  • Creditworthiness assessment of the City and the Company (€10,000 funded by the Bank);
  • IFRS accounts restatement for the Company (€6,000 funded by the Bank).


  • Project Implementation Support to advise on procurement strategy, assist with tendering and contract administration, as well as with the overall project implementation and administration of the EBRD Loan. (€180,000 expected to be funded by donor funds).
  • Public Transport Twining Partnership. The objectives of the twinning arrangement are to:
    (i) assist the Company to finalise and introduce a PSC to be signed by the City and the Company;
    (ii) advise on restructuring trolleybus operations and maintenance, having regard to the EBRD-supported investments;
    (iii) assist the Company in the preparation of a Corporate Development Plan; and
    (iv) take actions to build the management capacity of the Company. (€220,000 expected to be funded by donor funds).

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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