Plovdiv Road Rehabilitation Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:




PSD disclosed:

08 Feb 2010

Translated version of this PSD: Bulgarian

Project Description

The EBRD is considering a loan of up to EUR 15 million (or Bulgarian Leva equivalent of BGN 29.3 million) to the City of Plovdiv to assist with its Urban Transport Reform Programme. The loan proceeds will be used to finance road rehabilitation works and includes the following components:

(i) Priority rehabilitation works on approximately 105km of secondary and local roads as selected in accordance with economic and technical selection criteria;

(ii) Consultancy services related to design and procurement of multi-year Performance-Based Management and Maintenance of Roads (PMMR) contracts.

Transition Impact

The following transition impact is expected to be achieved:

1) Framework for markets
In contrast to a system in which road maintenance is carried out on unit-cost (or input-based), single segment basis leading to a certain instability in funding levels year on year, and thus over time to a road network in poor condition, output-based outsourcing of road/street maintenance, i.e. PMMR, will be developed to achieve better value for money. The PMMR approach is centred around the concept of pre-determining road serviceability standards based on performance levels (e.g., smoothness of surfaces, cleanliness of drainage systems, condition and appearance of signage, etc.). These performance standards are then tendered for with private sector contractors who compete during tendering for long-term maintenance contracts using fixed costs per kilometre of maintenance, with full payments made only for full compliance with the pre-established road maintenance service standards. Initially the PMMR approach will be introduced on a pilot basis for a minimum of 15 km of city roads and will come under joint rehabilitation-PMMR contracting.

2) Transfer of skills
The technical assistance for the development, preparation, training needs and implementation of the PMMR contracting, will lead to a transfer of skills to the City’s staff employed at the department responsible for design, execution and management of the road network in the City. Furthermore, specific training modules will be included in the TORs for both the road contractor industry and through active and sustained day-to-day activities working alongside the consultant teams on the PMMR contracting and project management and supervision.

3) Improved Road Management and Planning
The Bank will mobilise TC funds to the City to strengthen its administration by bolstering the existing Traffic Department to plan and manage rehabilitation works to international standards, combined with PMMR-based road maintenance contracts to protect valuable assets.

4) Demonstration effect
By reforming the urban road network and its administration in Bulgaria's second largest town, the Project will provide an important demonstration effect to other Bulgarian cities. The Project will demonstrate the benefits of adequate road sector finance, enabling the transport administration to apply more efficient methods for meeting road transport needs. Generally, through the Plovdiv example, other municipalities in the country will be able to see the benefits of reforms to the urban road system, including the introduction of sustainable financing and performance-based contracting for road maintenance.

The Client

The city of Plovdiv.

EBRD Finance

Loan of up to €15 million.

Project Cost

€ 17.3 million

Environmental Impact

Categorised B in accordance with the EBRD's 2008 Environmental and Social Policy. An environmental and social analysis of the project was undertaken by independent consultants. The investigations showed that the Project will provide environmental and social benefits related to the reduction of congestion and air emissions as well as improvements in road and pedestrian safety in the City of Plovdiv.

The due diligence has confirmed that there are no significant adverse environmental or social impacts or issues associated with the Project. Bulgarian competent authorities (REWI Plovdiv) have carried out an environmental screening procedure in accordance with the requirements of the EU EIA Directive and concluded that an EIA is not required. The road rehabilitation works will be taking place predominantly in the urban environment and no Natura 2000 sites will be affected. There will be localised moderate impacts during the road improvement works related to noise and dust, generation and disposal of waste and temporary traffic restrictions.

These will be mitigated by good construction practices and through agreed mitigation, monitoring and stakeholder engagement measures. The due diligence also identified that the client's E&S management and organisational capacity needs further improvements, and Plovdiv Municipality will further develop and implement environmental and quality management systems to be certified according to ISO 14001 and ISO 9001 standards.

A time bound Environmental and Social Action Plan (ESAP) has also been prepared for the Project based on the results of the due diligence, outlining potential improvement opportunities and mitigation measures to avoid, minimise or mitigate any adverse impacts arising from the project implementation. In particular, the ESAP covers

(i) project planning activities including the development of the specific EHS procedures for construction stage and staff (internal and subcontractors) training on implementation of those;

(ii) corporate environmental and social issues, including finalisation and implementation of Stakeholder Engagement Plan (SEP) and grievance mechanism for internal and external stakeholders;

(iii) construction phase activities, including appropriate EHS procedures for contractors and EHS supervision of the works, procedures for chance finds, prevention of dust and noise impacts, and implementing specific actions to ensure community health and safety issues;

(iv) operation phase issues, including environmental monitoring activities.

A Stakeholder Engagement Plan, including a grievance mechanism, has been prepared for the project. As part of the SEP, a summary of the project's impacts and mitigation measures will be disclosed locally before construction works start. The Bank will monitor the implementation of the Project, ESAP, SEP and E&S monitoring plan.

Technical Cooperation


  • Investment prioritisation and technical, environmental and economic due diligence (EUR 35,000).


  • Consultancy assignment to prepare and agree the performance specifications suitable for PMMR type contracts; identify the best method of monitoring and supervision to maximise transition impact; and train a maintenance monitoring unit. Estimated at EUR 225,000.
  • Consultancy assignment for Project Implementation Support, to prepare Bills of Quantity and tender documents; assist the city with procurement and contract award; supervise rehabilitation works. Estimated at EUR 300,000.
  • Design of a traffic management system, including an integrated traffic control centre, traffic enforcement, real-time information to motorists and accident response. Estimated at EUR 175,000. This TC will be designed in a way to complement the work to be done under the assignment for design of an integrated urban transport system for the City of Plovdiv, financed with funds under the Operating Programme Regional Development of the European Commission.

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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