Sfantu Gheorghe Street and Lighting Rehabilitation Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

12 Oct 2010



PSD disclosed:

27 Nov 2009

Project Description

The EBRD is considering providing a loan of up to €12 million (or RON equivalent) to Sfantu Gheorghe Municipality (the “Municipality” or the “City”) for a street rehabilitation and improvement of public lighting programme. Streets rehabilitation works will be undertaken on selected urban roads which may include renewal of asphalt and pavements, building new central pedestrian areas and upgrade of water and sewage pipeline along the streets. Public and street lighting refurbishment will entail replacement of lighting fixtures, existing high pressure mercury-based lamps with energy-efficient technology, and installation of central lighting management system allowing lighting automation and control and energy monitoring.
The proposed project would involve the implementation of a pilot programme to involve private sector contractors/operators in the maintenance of city roads through the tendering of performance-based contracts developed in conjunction of the implementation of the road investments.

Transition Impact

Transition goals of the operation include:

  • Framework for markets
    Output-based out-sourcing: better value for money will be achieved by wrapping multi-year maintenance activities into the urban road maintenance sector under the Performance-Based Management and Maintenance (PMMR) multi-year contracting modality, to also include the maintenance of street lighting.
  • Transfer of skills
    The technical assistance for the PIU, PMMR contracting, which will also include the maintenance of public lighting, will lead to a transfer of skills to the City’s staff employed at the Traffic and Infrastructure Departments responsible for design, execution and management of the road network in the City.
  • Demonstration
    The Project will have a strong demonstration effect as this will be the first example of highly efficient street lighting (such as LED), with long-term involvement of specialist private sector companies.


The Client

Sfantu Gheorghe Municipality.

EBRD Finance

Up to €12 million loan (or RON equivalent) to the City.

Project Cost

Up to €14.5 million.

Environmental Impact

Screened B (2008) requiring an environmental and social analysis of the proposed project and a review of the Client's and contractors' environmental, health, safety and human resources management systems. The Project should mainly result in environmental benefits from reduced use of energy and use of environmentally-friendly street lighting units. Minor issues might be associated with the construction stage related to increased noise, dust and vibration levels and disposal of waste. The environmental and social due diligence will also need to identify and assess if the Municipality has an adequate EHS management system in place for carrying out the Project in compliance with the EBRD Environmental and Social Performance Requirements. In addition the due diligence will need to assess whether the client’s stakeholder engagement activities meet Bank requirements as stipulated in performance Requirement 10.

The Project shall be structured to comply with the EBRD's Performance Requirements. The Client shall develop and implement Stakeholder Engagement Plan and agree to and implement an Environmental and Social Action Plan (ESAP)" to be developed on the basis of the environmental and social due diligence. The Client shall submit to EBRD annual reports on environmental and social matters.

Technical Cooperation

It is expected that Technical Cooperation assistance will be provided to assist the city of Sfantu Gheorghe for:

  • Street Rehabilitation and Public Lighting - Technical Scoping
  • Environmental and Social Due Diligence
  • Preparation of tender documents for street rehabilitation programme and scoping of the PMMR
  • Assessment of actual energy and cost savings resulting from of high-efficiency public lighting and introduction and implementation of PMMR contract.

It is anticipated that the above TC assignments will be financed from the Bank’s own resources.

  • Procurement and Implementation Support

It is anticipated that the above TC assignment will be financed by the loan.

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

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