Iasi Urban Transport



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

15 Nov 2016



PSD disclosed:

30 Aug 2016

Translated version of this PSD: Romanian

Project Description

A loan of up to EUR 15.0 million (or RON equivalent) to the Municipality of Iasi for the acquisition of 50 new buses with low carbon emissions which comply with the European Commission's Euro 6 legislation on diesel engine emissions.

Project Objectives

The project aims to improve the daily mobility of citizens and reduce pollution caused by traffic congestion, in line with the city's Sustainable Urban Mobility Plan, focusing on the modernisation of
its public transport system.

Transition Impact

The proposed project fits under the public transport window of the EBRD-led SMART Framework, with transition impact expected to stem from:
• Establishment of a new regulatory body with adequate capacity to successfully contract and/or manage urban transport services in the metropolitan area;
• Commercialisation of the public transport services and introduction of a new Public Sector
Contract (PSC) , in line with EU requirements, between the city and the public transport operator;
• Participation of the city and its transport operator in a public transport benchmarking programme.

The Client

The City of Iasi is one of the largest cities in Romania, with a population of approximately 400,000.

EBRD Finance

EUR 15,000,000.00

Project Cost

EUR 18,000,000.00

Environmental Impact

The project has been categorised B in accordance with the Bank’s 2014 Environmental and Social Policy. External consultants have undertaken an environmental and social analysis of the proposed investment as well as a review of environmental, social, health and safety policies and procedures and the capacity of the company to manage risks associated with the proposed Project in line with the EBRD’s Performance Requirements (PRs). The ESDD showed that the project result in substantial environmental and public health benefits through acquisition of buses, contributing to improving air quality in the City, and accessibility and mobility for all user groups and improve overall quality, safety and efficiency of urban transportation. Any adverse impacts during the project implementation works will be site specific and mitigated by timely disclosure of information for affected population/stakeholders and construction best practices.

The ESDD identified that the Company has the institutional capacity to implement the Project in compliance with the Bank's PRs, and is in compliance with the regulatory requirements. An Environmental and Social Action Plan (ESAP) has been developed and it will need to be agreed with the Company as part of loan agreement. The ESAP addresses the areas for improvement identified during the ESDD and includes the necessary mitigation measures which will enable the project to comply with national regulations and the Bank’s PRs. The ESAP requires the Company, among others, to develop and implement Environmental Management and Occupational Health & Safety Systems (including improvement of sanitary and hygienic conditions for the Company employees) as well as develop and implement a Stakeholder Engagement Plan. The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.

Technical Cooperation

• Technical, institutional, economic and environmental due diligence to include: (i) a technical review of the project; (ii) support for drafting functional specifications of the rolling-stock to be procured and support for the tendering process; (iii) a financial and economic review of proposed investments (EIRR), and (iv) an environmental analysis of the project.

Post-Signing (under SMART Framework):
• TC support for corporate development and commercialisation. The TC would cover support for preparation of a business development plan, commercialisation of services and corporate governance, this will include a revised EU-compliant PSC to be signed between the city and the public transport operator.
• Support for participation in a public transport benchmarking programme. The scope is to provide the public transport operators with a tool to compare operational performance over time and to
gain information relative to industry standards that helps them take action towards improved performance.

Company Contact

Primaria Municipiului Iasi
Bd. Stefan cel Mare si Sfant nr. 11, 700064 Iasi


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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