Project Description
The Slovak Government has recently undertaken to construct two new sections of the D4 Highway, forming part of the Trans-European Transport Network (TEN-T), and three new sections of the R7 Expressway to ease access to Bratislava, the Slovak capital, improving a key road corridor. The Project is being procured under a Public Private Partnership model, whereby the Slovak Government is planning to sign a Concession Agreement with a privately owned Concessionaire, which will have the responsibility to finance, construct, operate and maintain the Project roads. EBRD is planning to be a part of Lenders group to provide long term financing for the Concessionaire.
Project Objectives
The key objectives of the Project are to reduce traffic congestion in the Slovak capital, Bratislava, speed up access to motorway networks (D4, D1, D2) and partially reduce traffic on the road network in the catchment areas of Bratislava. The Project also includes sections of the R7 expressway, whose construction is expected to add to the radial roads to relieve the drive-through sections of the existing radial roads in highly urbanized areas, diversifying the available routes for traffic to and from Austria and Hungary.
Transition Impact
ETI score: 80
The proposed Project is the second motorway construction project in Slovakia to be financed under a Public Private Partnership scheme. The transition impact for the Project is expected to come mainly from (i) a significant demonstration effect by promoting continued private sector involvement in the road sector through the participation in the financing of this PPP and; (ii) a regional demonstration effect associated with the replication of the concession programme by governments in neighbouring countries to continue developing their plans for similar PPP programmes.
Client Information
ZERO BYPASS LTD
Concessionaire is expected to be confirmed by Slovak Government in first quarter 2016.
EBRD Finance Summary
EUR 148,427,536.00
Total Project Cost
EUR 989,341,376.00
Environmental and Social Summary
Categorised A (ESP 2014). The construction of four-lane roads has the potential to result in significant adverse environmental and social impacts. The Project involves the design, construction, operation and maintenance of two dual-lane sections of the D4 highway (Sections 1 and 2), three sections of the radial R7 expressway (Sections 3, 4 and 5) with a total length of 59 km, with each section having a separate Environmental Impact Assessment (EIA). The relocation of 4.8 km of local roads (Sections 6 and 7) did not require EIA screening as they are less than 5 km long. Alternative route alignments were considered and were included in the public consultation during the EIA process.
Environmental and social due diligence (ESDD), undertaken by an independent consultant included a review of the EIA's and other supporting project documentation plus site visits. As the Concessionaire had not been selected environmental and social requirements included in the draft Concession Agreement were also reviewed. The ESDD findings concluded that the EIA process, combined with the studies and documentation required for the Zoning Permit and Building Permits required for the detailed design was considered compliant with national requirements and the EU EIA Directive. Gaps identified with the Banks PR's were largely related to social impacts, health and safety, land acquisition, road safety, visual and cumulative impacts of the combined projects. A disclosure package to address some of the main gaps comprising the overarching Non-Technical Summary covering all the project road components, Environmental and Social Action Plan (ESAP), Stakeholder Engagement Plan (SEP), and Land Acquisition and Resettlement Framework (LARF), as well as the original Environmental Impact Assessments (EIA) for the new road sections and proposals for biodiversity compensatory measures have been provided to structure the project to meet the Banks PRs.
An ESAP has been prepared and agreed with the selected Concessionaire. It includes requirements for the implementation of the LARF and Road Safety Audits implementation, pre-construction walk over surveys by experienced ecologists, preparation of cumulative impact assessment addressing the potential combined impacts of all of the project sections, development of a design change management procedure, development of an Employment Policy Document to ensure compliance with EBRD PR2 and provision of Occupational Health and Safety (OHS) Management System, to ensure compliance with EBRD PR4 together with the implementation and regular update the SEP.
The Bank is reviewing the Project's environmental and social performance in accordance with the Bank's PRs through review of reports provided by the independent Lenders Technical Advisers (LTA) and will undertake periodic monitoring visits. Reports received to date indicate that expected progress is being made in line with stage of the project implementation and works.
As the original scope of the compensatory measures notified to the European Commission (EC) on 11.03.2016 pursuant to Article 6(4) of the Habitats Directive (92/43/EEC) has changed to different locations. Information reviewed by the LTA, has indicated that no material issues have been raised by stakeholders as a result of these changes.
A site visit will be attended by EBRD in 2018 to review implementation of E&S mitigation measures, land acquisition and progress of the ESAP implementation.
There is an Environmental and Social Impact Assessment available for this project.
http://www.obchvatbratislavy.sk/en/dokumenty
2020 Update
The LTA has been monitoring the project and implementation of the Environmental and Social Action Plan. The result has been largely satisfactory, with the majority of points being "achieved", "exceeding" or "on target" and only 8 in minor delay.
A potential contamination of a segment of Jarovce Embankment was tested. EPC Contractor provided expert opinions and analysis demonstrating concentrations far below the limits considered harmful for the humans or the environment. Furthermore, a groundwater and air monitoring plan has been established for 5 years to ensure no affection to the environment. The relevant authority has accepted this and does not require further analysis or permits. Regarding management procedures, EPC contractor has improved both the topsoil management plan and the materials management plan.
Monitoring of the impacts on the environment of the construction of highway D4 and expressway R7 was carried out according to the Environmental Monitoring Plan. On a regular basis, air, noise, groundwater, surface water and biodiversity have been monitored. Results show that the construction caused no significant impact on target groups or taxons, and that animals are quickly adapting to the new migration objects.
The Land Acquisition & Resettlement Framework written in conjunction with the Slovak NDS aims to minimise the impact of land acquisition with a particular focus on the avoidance of resettlement. Small issues are about to be solved from land handed to the EPC Contractor to date. Some land acquisition related to a Compensatory Measure still remains to be completed by the Public Authority but alternative mitigation measures are under review. In this regard, the Slovak Land Fund is consulted and involved as required in relevant land acquisitions.
Technical Cooperation and Grant Financing
None
PSD last updated
10 Aug 2021
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
