Togliatti Trolleybus



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

25 Oct 2011



PSD disclosed:

09 Aug 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a loan to the municipal trolleybus company of the City of Togliatti (pop. 740,000) under the full municipal guarantee to finance:

(i) procurement of the new energy efficient low-floor trolleybuses, allowing to replace the existing worn-out fleet and
(ii) upgrade and extension of the trolleybus infrastructure.

The project aims to increase the capacity and standards of public transport services as an alternative to car usage and to provide an overall balanced approach to the urban transport infrastructure development in the City, complementing the previous Togliatti Urban Transport Project.

Transition Impact

Transition impact will derive from commercialisation and corporate restructuring of the municipal trolleybus company through:

(i) Commercialisation: The introduction of a multi-year Public Service Contract with an interlinked revolving Compensation Agreement between Togliatti Trolleybus Company and the City will establish a robust and transparent arms length relationship between parties in terms of

(a) service planning, provision, and monitoring;

(b) calculation of remuneration for services delivered; (iii) annual indexation of the agreed service cost unit; and

(c) routine reporting.

(ii) Demonstration of Successful Restructuring: Corporate restructuring of the trolleybus company will result in reduction of operational cost, improved service quality and increased fare revenues The successful implementation of a Corporate Restructuring Plan will be strengthened through establishing related targets, milestones and incentives in the Public Service Contract. This all together will improve both operational and financial performance of the Company. In addition, a comprehensive feasibility study will be carried out on the potential merger of the municipally owned bus trolleybus companies which could provide further synergies and cost savings in service provision.

(iii) Improving standards for business conduct: The project will improve the Company’s financial transparency and the quality of financial information through IFRS statements and auditing going forward. The Company will develop and implement an Environmental and Social Action Plan (ESAP) which will significantly improve the company’s environmental management and overall performance. Procurement standards will be improved through application of the Bank’s Procurement Policies and Rules. In addition, by introducing a supervisory committee concept, the PBSA will improve corporate governance.

The Client

MUP TTU, a municipal trolleybus company, owned by the city of Togliatti.

EBRD Finance

A loan to the company in the amount of up to RUB 355 million (EUR 8.9 million).

Project Cost

RUB 420 million (EUR 10.5 million) net of TC funding.

Environmental Impact

Categorised B. The environmental and social due diligence on the original Project was conducted in August 2008 within the remit of the previous Environmental Policy (2003). The due diligence identified a number of environmental, health and safety related issues, including a poor state of repair of the depots and maintenance facilities; obsolete wastewater collection and treatment facilities; inadequate waste storage facilities; poor housekeeping, lack of air emission permits, exceed of personal exposure limits to noise for drivers of old trolleybuses and related occupational illness; lack of any management systems or formal environmental training, etc. Togliatti Trolleybus implements annual health and safety action plans, however due to the budgetary constraints, it covers only the most urgent activities. An Environmental and Social Action Plan was developed by the consultants and submitted to the Client; however there was no progress on the implementation of ESAP due to the delayed approval timetable of the Project and continuous budgetary constraints experienced by the Client. In view of the significant amount of time that has elapsed since the due diligence was conducted and the revision of the Bank's Environmental Policy, the current standing of the environmental, social , health and safety issues vis-à-vis the Bank's Performance Requirement (2008) as well as an implementation status of the ESAP will need to be verified by independent consultants.

Technical Cooperation


  • Procurement Advisory Services to assist the Company in preparation of the technical specifications and tender documents to procure trolleybuses in accordance with EBRD’s PP&R (up to EUR 50,000)


  • Corporate Restructuring and Development Programme to: (i) develop a comprehensive Corporate Restructuring Plan; (ii) assess feasibility of potential merger of municipal bus and trolleybus companies; (iii) prepare a long-term business plan and strategy; (iv) update the existing Public Service Contract to include key milestones, targets and cost incentives accommodating the approved Corporate Restructuring Plan; (v) identify cost-effective out-sourcing options; (vi) IFRS development; and (vi) introduction of MIS. (up to EUR 450,000)
  • Procurement, Implementation Support and Contract Supervision (up to EUR 180,000)

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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