Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

02 Nov 2004



PSD disclosed:

06 Aug 2004

Project Description

The objectives of the project would be to finance the purchase of up to 35 new buses for the Gdansk Public Transport Company (the Company) and to co-finance an EU Structural Fund project with the City of Gdansk (the City) for the upgrading and extension of tram tracks.

Transition Impact

  • Support to the commercialisation of the Company and organisational improvements 
    Bank-funded technical co-operation has already provided extensive support in corporatisation of the Company, but many organisational and operational improvements remain to be implemented; the Bank would support them by operational targets included as covenants in the Loan Agreement.  
  • Development of Regulatory Framework and Institutional improvements 
    The improvement of the regulatory and institutional framework for public transport in the city will continue. The project would support the newly Urban Transport Monitoring Unit at the City, which will act as regulator and counterpart to public transport providers.
  • Client-Supplier Relationship through a Public Service Contract (the PSC) 
    A newly introduced comprehensive PSC defines the scope of services provided by the Company and sets the level for service payments by the city for the services it purchases. The service payment replaces the system of direct, untargeted subsidies, and provides incentives for the Company to improve its financial and operational performance. 
  • Demonstration effect 
    The Operation would be the second transaction, after the Kaunas Public Transport Project and the first transaction in Poland, where the Bank would lend directly to a municipal transport company, without a sovereign or municipal guarantee.

The Client

  • The Gdansk Public Transport Company (the Company) is a limited liability company fully owned by the city. The Company operates a network of 10 tram lines and 77 bus lines in the City and neighbouring municipalities.
  • The City of Gdansk (the City) with a population of 460,000 is the capital of the Pomerskie region in the north of Poland.

EBRD Finance

The project would comprise two loans from the Bank:
  • Up to €6.0 million senior loan to the company
  • Up to €5.0 million loan to the city.

Project Cost

The total cost of the project has been estimated at €18 million.

Environmental Impact

Description of the project 
The proposed project involves financing the purchase of up to 35 new buses for the Gdansk Public Transport Company and co-financing with an EU Structural Fund a project with the City of Gdansk for the upgrading and extension of tram tracks.
Screening categories and rationale for classification
The project was subject of an Initial Environmental Examination (IEE) which showed that it is not associated with any significant environmental issues.  The replacement of the bus fleet, modernisation of the existing maintenance depots and the extension of the tram tracks where basic infrastructure has already been constructed are associated with limited environmental impacts which could be readily assessed and mitigated.  For the above reasons, the EBRD has classified the project B/1, requiring an Environmental Analysis of the proposed investment programme and an environmental audit of the existing infrastructure.
Information reviewed during the environmental appraisal 
The environmental appraisal has been based on the following information:
  • Gdansk Urban Transport Project feasibility study, prepared  in July 2004;
  • Additional clarifications provided by independent environmental consultants. 
Environmental impacts and mitigation measures
The Environmental Analysis did not identify any significant environmental impacts associated with the proposed project.  Purchase of new Euro-3 buses and improvements of the tram system will help to develop public transport alternatives as well as to reduce traffic congestion, noise and air pollution and will contribute to improvement of the air quality in Gdansk.  Air emissions and noise generated during the construction phase will be temporary and, given proper work standards, will be kept to a minimum.  During the construction phase noise intensive works will be executed only during daytime.  Works that require the use of vibrations generating equipment and devices will be conducted to prevent potential damage to buildings.  The tender dossier will include the environmental obligations the contractor should fulfil.  The contractor will be obliged to follow a proper environmental practice during all construction work activities and to keep damage to vegetation, soil, ground water, surface water, landscape and disturbance to a minimum.  The proposed mitigation measures, when implemented, will ensure that the investment will comply with the relevant Polish and European Union environmental standards.
Environmental opportunities
The improvement and extension of public transport services is fully consistent with European best practice.  The project is expected to reduce road traffic, traffic congestion, and result in reduced air emissions.
The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing annual environmental reports (AERs) prepared for the project covering: (i) ongoing performance of project-specific environmental, health and safety activities as reflected in the results of periodic and quantitative sampling and measuring programmes, (ii) the status of implementation of environmental mitigation and improvement measures. The Bank’s representatives will also conduct periodic site supervision visits when deemed appropriate.

Technical Cooperation

Technical co-operation for the completed Gdansk Urban Transport Project, funded by the EU-Phare Bangkok Facility:
  • Gdansk Urban Transport Project Detailed Feasibility & Project Preparation (€470,000) completed in 2000.
  • Creditworthiness Analysis of Cities of Gdansk and Sopot (€400,000) completed in 2000.
  • Restructuring Public Transport, Project Implementation Assistance and Preparation of a second Urban Transport Project (€972,000) on-going.
  • Creditworthiness Enhancement Programme (€600,000) to the City completed in 2000.

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

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