Veolia Transport Central Europe



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

29 Nov 2005



PSD disclosed:

27 Oct 2005

Project Description

The proposed project...The proposed project is to provide new equity funding to Connex to expand its public transport services in CEE (Central and Eastern Europe), with an initial focus on the Czech Republic, Poland, Slovenia and Slovakia, followed by Bulgaria, Croatia, Hungary, Romania and Serbia. The transaction will contribute to increased private sector involvement in the passenger transport market in Central and Eastern Europe.

Transition Impact

This transaction will contribute to increased private ownership through the privatisation of publicly-owned entities and increased private sector participation in the regulated sector, notably urban, inter-urban and rail services. In addition to expansion of the current operations in Czech Republic, Poland, Slovenia and Slovakia, the Company will seek to establish a presence in several new countries, where there is little or no corporate private sector participation. Candidate countries are Bulgaria, Croatia, Hungary, Romania and Serbia. In both established and new markets, and in the competitive and regulated sectors, the Bank’s investment will help to demonstrate the effectiveness of competition and private sector involvement in the provision of passenger transport services.

The Bank’s role in the transaction will demonstrate to other investors that successful private equity investment in transport service companies can be achieved, despite the absence of a liquid securities market. The Bank’s participation should therefore strengthen the confidence of future equity investors in the business and, in due course, lead to greater liquidity in the secondary equity market for public transport companies.


The Client

Connex Central Europe GmbH, a limited liability company organised in Germany (the “Company”), which is fully owned by Connex S.A. (“Connex” or “Sponsor”). Connex is a leading private European public transport operator and subsidiary of Veolia Environnement (“Veolia”).

EBRD Finance

The project will consist of the subscription of up to 35% of the Company's capital and voting rights. Amount to be confirmed.

Project Cost

To be confirmed.

Environmental Impact

The project was screened C/1 requiring an environmental audit of the company’s existing subsidiaries in CEE. It was given a C rating as the expansion of Connex’s services in central and eastern Europe (CEE) is likely to have minimal environmental impact. In a broader sense, as the project will promote and improve public transport it is likely to have a positive environmental impact in the region.

The environmental investigations focused on the company’s ability to manage environmental, health, safety and labour issues; their capacity to conduct appropriate environmental due diligence of potential acquisition targets and their compliance with national regulations and EU standards for environment, health and safety. The findings of the review indicate that the Company/Sponsor are fully committed to compliance with national laws for environment, health, safety and labour (EHSL) and EU standards for environment, health and safety (as required by EBRD’s Environmental Policy) and that there are no significant environmental issues associated with their current portfolio of CEE subsidiaries. Environmental action plans may be necessary for future acquisitions to bring them into compliance with the applicable laws and standards for EHSL. This will be determined on a case by case basis if the results of due diligence demonstrate a need for it. No other environmental, health and safety issues to raise at the moment.


Technical Cooperation


Company Contact

Mr. Ragnar Nordström, Managing Director
Connex Central Europe
Georgenstrasse 22,
10117 Berlin, Germany

tel: +49 (0) 30 / 200 73 - 401
Fax: +49 (0) 30 / 200 73 - 444


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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