Arad Urban Transport Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

17 May 2005



PSD disclosed:

02 Mar 2005

Project Description

The proposed project is intended to improve the City of Arad’s urban transport infrastructure through investment in

(i) tram track rehabilitation

(ii) street upgrading in the city centre

(iii) traffic signal modernisation.

The project is also intended to improve the overall operational performance of the public transport system in the city of Arad.

Currently, the EBRD is considering extending a financing to the City of Arad to complement an existing loan signed in 2005. The operation will enable the City to

(i) complete the existing work programme and
(ii) to continue with the phase 2 of a comprehensive tram track rehabilitation programme in the city.

Transition Impact

The proposed project will improve the performance of the public transport system through increased commercialisation of the public transport company.

This will include implementation of a multi-year Public Service Contract between the City and the company as well as the involvement of the private sector, as appropriate. The terms of a Public Service contract are expected to include

(a) a transparent multi-year payment for service

(b) utilising targets and incentives to increase efficiency

(c) making the company responsible for investment planning and financing.

The Client

Arad Municipality, located in the western part of Romania, has a population of 173,000.

EBRD Finance

A sub-sovereign loan to Arad Municipality of EUR 20 million.

An additional financing to Arad Municipality of up to EUR 13 million

Project Cost

Approximately EUR 41.8 million.

Environmental Impact

The original project was screened B/0 requiring an Environmental Analysis.

The Analysis, undertaken by local independent consultants, confirmed that there are no significant environmental impacts associated with this operation and a number of very tangible environmental benefits are likely to arise. A comprehensive environmental action plan (EAP), was also developed, and has been implemented to ensure compliance with both national and European Union environmental requirements. The upgraded tram infrastructure will be more efficient in the transmission of electricity through reduced power losses. Noise and vibration from tramway tracks will also be reduced. In addition to reduced emission levels, the Bank's project will continue to bring environmental benefits by enabling the provision of better quality public transport services and providing an attractive alternative to the car for travel within Arad.

Technical Cooperation

Technical Cooperation assistance is provided to assist the city of Arad in the development of private sector participation and commercialization of the Public Transport company. The assignment is financed by the Government of Italy.


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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