Khatlon Public Transport



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

13 Dec 2017



PSD disclosed:

25 Aug 2017

Translated version of this PSD: Russian

Project Description

The project involves establishing a municipally owned passenger transport operator providing services on basic routes in Kurgan-Tyube and its suburban area in order to ensure a minimum standard of public transport service and transport links.

The EBRD would provide a loan of up to US$ 6.0 million to the newly created passenger transportation company. The Republic of Tajikistan would provide a sovereign guarantee. The city of Kurgan-Tyube, as owner of the Company, would sign a Project Support Agreement with the Bank.

The loan would consist of two tranches:

1) Tranche I (committed) - a loan of up to US$ 3.5 million to be co-financed by a capital grant of US$ 1.8 million from an international donor.
2) Tranche II (uncommitted) - a loan of up to US$ 2.5 million to be co-financed by a capital grant of US$ 1.3 million from an international donor

The loan proceeds would finance the following:

a) fleet purchase
b) depot construction and equipment
c) introduction of an automated fare collection system.

Project Objectives

The project's objective is to establish a reliable passenger transport service on core routes in Kurgan-Tyube and suburban routes from Kurgan-Tyube to the towns of Vakhsh and Sarband.

Transition Impact

The Bank's investment aims to improve public transport services in Khatlon Oblast, where the sector is poorly regulated and lacking transparency. Regulation is currently limited and poorly enforced, resulting in impaired service standards and environmental practices; and operational efficiency is sub-optimal due to a lack of investment and operational resources. The project's transition impact stems mainly from the following key areas:

-Well Governed: The project would introduce well-governed public transport services, through public service contracting, and through the establishment of a larger operator with efficient operational practices and a corporate development plan, as well as an automated fare collection system.

-Inclusive: In response to the "large" transition gender inclusion gaps in Tajikistan, the project would introduce inclusive HR policies and practices at Company level to create better access to employment, training and progression opportunities for female candidates in a male-dominated sector. A donor-funded Gender Advisory Services programme would support Khatlon Oblast in its recruitment strategy and achievement of female employment targets as part of a tailored but replicable equal opportunities (EO) gender action plan.

The Client

The Client, State Communal Unitary Enterprise "Bokhtarnaklietkhizmatrason" is a newly created municipal transport company located in Kurgan-Tyube.

EBRD Finance Summary

USD 6,000,000.00
Sovereign loan of up to US$ 6.0 million to the Company.

Total Project Cost

USD 9,100,000.00

The total project cost is estimated at US$ 9.1 million excluding technical cooperation.

Environmental and Social Summary

The Project has been categorised B in accordance with the Bank’s Environmental and Social Policy 2014. Any environmental and social impacts potentially associated with the Project, will be site-specific and readily identified and mitigated. An Environmental and Social Audit/Review of the current Environmental Health and Safety and Social (EHSS) management practices, operations and facilities, and an Environmental and Social Analysis of the proposed investment were carried out as part of the Feasibility Study by independent consultants.

ESDD confirmed that introduction of the long buses fleet and construction of the new maintenance depot and e-ticketing system will have strong positive impacts on sustainable transport aspects such as road safety, accessibility and introduction of a new public transport system. The due diligence investigations showed that  since the Company is not operating yet, it will be required to develop an  EHSS management systems and enhance their capacity so that their occupational health and safety practices and facilities will  meet EBRD's Performance Requirements (PRs). The Project will be  compliant with EURO 4 standards and will significantly contribute to improved OHS and workers welfare conditions by modernisation of the old depot.

The project will contribute to improving accessibility and mobility for all user group, and overall quality, safety and efficiency of urban transport. The Project will introduce an automated collection system.  Potential social risks related to the introduction of e-ticketing will be mitigated through the Project Communication Plan.

Any potential adverse impacts to water quality, air quality, noise and vibration levels and waste management that might result from construction of the depot facilities are expected to be site specific, limited to construction phase only and addressed through appropriate mitigation measures. The project implementation is limited to the urban area  and no sensitive ecological receptors or protected zones will be affected. The project will not have significant adverse social impacts to local communities or other project affected parties, nor will the project require the acquisition of lands or result in involuntary resettlement or economic displacement.

Compliance with National Labour Code and EU legislation will be closely monitored. The Project Communication Plan will contain the list of both external and internal stakeholders and communication strategies for them. Grievance mechanism channels are required to be set up and available both for employees and for general members of the public, i.e. customers.

A Stakeholder Engagement Plan (SEP) has been developed for the Company and the City to improve external consultation and disclosure in accordance with EBRD's requirements. An Environmental and Social Action Plan (ESAP) has been developed for the Company and the City to structure the Project to comply with national regulations and EBRD's PRs. The ESAP, the implementation of which will be covenanted in the legal agreements, addresses the necessary improvements in the Company's E&S and HR management systems and capacity as well as improvements in managing construction activities so as to avoid, minimise and mitigate the potential adverse E&S impacts of the project and includes measures for: improving waste management; regular emissions monitoring; developing implementing and revising risk assessment procedures and providing relevant training to personnel; monitoring contractors; developing procedures for public safety during construction of the depot; providing required protection measures for noise and dust impacts; conducting environmental and safety inspections during construction phase and implementation of the SEP.

The PIU/CDP support will be provided to assist the Client in building their EHSS management capacity and implementation of the Environmental and Social Action Plan, Stakeholder Engagement Plans and the annual environmental and social reporting requirements to the Bank.

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

The following technical cooperation (TC) assignments are envisaged as part of this project:

Pre Loan Signing

  • Technical due diligence to support scoping and structuring of the project and an environmental and social assessment. €280,000 was provided by the Government of the Czech Republic.

Post Loan Signing

  • Procurement, Implementation Support and Contract Supervision. US$ 350,000, to be financed by the ETC Fund.
  • Corporate Development Programme, including Development of a City Transport Strategy. US$ 350,000, to be financed by an international donor, the EBRD Shareholder Special Fund or the ETC Fund.
  • Pre-Shipment Inspection of Buses. US$ 90,000, to be financed by the ETC Fund.
  • Gender Advisory Services Programme for the Company and Khatlon Oblast. €250,000, to be provided by the Gender Advisory Services Technical Assistance Programme.

Company Contact Information

Alexey Timchenko
2nd floor, 6 Gasheka Street, Moscow, Russia 125047


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)

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Text of the PIP

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