Provision of a senior loan of up to PLN 392.5 million to co-finance acquisition of up to 45 metro trains required by the Warsaw Metro in connection with the expansion of its second line. The Project is a part of the EBRD Green Cities Framework. The facility is designed to serve as a sector-wide catalyst for addressing environmental challenges at the city level.
The expansion of Metro Line II is an important investment in the development of high-capacity public transport in Warsaw, which is expected to reduce traffic congestion in the City of Warsaw, lower the overall carbon footprint of the urban transport sector, and bring additional modal shift from personal cars and busses to the subway system.
ETI score: 60
ETI 70. The Project is Warsaw's first investment under the Green Cities Framework 2 ("GrCF2").
The GrCF2 is a strategic and multi-project approach targeting environmental issues in selected large cities in the Bank's countries of operation. It is aimed at covenanting and supporting the cities in the preparation of a comprehensive city-specific Green City Action Plan ("GCAP"), identifying and prioritising environmental challenges and ways to address them through targeted investments, services and policy instruments. The Project will pursue Green and Well-governed TI objectives which are consistent with the Green Cities Framework ("GrCF").
The Project is fundamental for the increased share of the public transportation in the daily commuting modes and to the success of achieving the reduction of CO2 emissions as well as reduction of fine particles and traffic congestion levels. In addition to that, the Project is expected to bring additional energy efficiency through the replacement of the old and less efficient metro trains.
METRO WARSZAWSKIE SP ZOO
Metro Warszawskie Sp. z o.o. ("Warsaw Metro" or the "Company"), a limited liability company wholly owned by the City of Warsaw and providing urban transport services on two subway lines in Warsaw.
EBRD Finance Summary
EBRD financing will be part of a syndicated loan facility for the entire amount of up to PLN 392.5 million to co-finance the new rolling stock to be purchased by the Company, which is part of the Warsaw Metro development project implemented by the City of Warsaw and the Company (the "Project"). The Project is expected to be co-financed from the EU Cohesion Funds, the Company and debt financing.
Total Project Cost
The entire value of the Project amounts to PLN 1,306,948,482.40.
The Bank is uniquely positioned to assist the City in addressing environmental challenges through the preparation and implementation of a GCAP and CAP.
Environmental and Social Summary
Categorised B (2019 ESP), Low-Medium risk. Acquisition and operation of the rolling stock to be used at existing metro Line I and Line II and expanded in the future LINE II in Warsaw will result in net environmental benefits related to expected savings of CO2, NOx and PM emissions form car and bus transportation in the city.
The environmental and social due diligence ("ESDD") for Tranche II was carried out by Environmental Sustainability Department ("ESD") and included review of environmental health and safety ("EHS") questionnaires, meetings and review of the corporate environmental, health & safety ("H&S"), labour management systems implemented by the Company, review of communication and stakeholder procedures, services safety and supervision and reporting from Contractors and implementation of the environmental and social action plan ("ESAP") agreed under Bank's previous transaction with Warsaw Metro (DTM 39386) maturing in 2024. ESDD also considered the environmental and social ("E&S") issues associated with Line II, where the rolling stock financed under this transaction will be used in the future. Initial section of Line II was covered by an independent ESDD carried out in 2010. For further extensions of Line II, the national environmental impact assessment ("EIA") documentation, permitting and compliance with local development plans are under review and this will be finalised prior to the Board. The Line II extension is being constructed using the tunnel boring method, which means that the temporary impacts during construction will largely confined to the areas around the new stations.
The ESDD has confirmed that the Warsaw Metro's operations are covered by a mature certified integrated management system in line with PN-EN ISO 9001:2015-10, PN-EN ISO 14001:2015-09 and still applicable at the time of last re-certification PN-N-18001:2004. The Company has appointed suitably qualified environmental and health and safety management overseeing operational aspects, as well cooperating closely with the investment department, which oversees works carried out by contractors. Services safety is governed by a set of procedures and authorisations given by a national Railway Transportation Board in regards to safe operation of trains, stations and infrastructure.
The Company employs (as of March, 2020) 2678 employees, 84.65% men and 15.35% women. There are 4 trade unions operating in the Company. The majority of employees belongs to one of 4 trade unions. There is a Collective Agreement and Employee Rulebook, which are consulted with trade unions, in particular in relations to pay levels according to employee group labour standards are in line with Polish national requirements and aligned with EU labour legislation. There were no protests or disputes with trade unions in the last 3 years. The Company operates non-discrimination policy and has implemented internal grievance mechanism, albeit further improvements have been suggested in the ESAP.
The Company diligently implemented ESAP agreed with the Bank in 2011, including provision of noise barrier at Kabaty (end of Line I) depot, implementation of ongoing noise monitoring, improvements to wastewater discharges from depots and implementation of grievance mechanism. The Company has been providing regular comprehensive annual EHS reports to the Bank.
The ESAP has been revised to strengthen internal grievance mechanism, and formalise a range of stakeholder engagements activities carried out by the Metro, particularly in regards to construction of extension lines, which can be considered good international practise and to continue to monitor contractors in regards to implementation of environmental conditions stipulated in environmental permits and H&S performance. The Bank will continue to monitor company's EHS performance and compliance with EBRD PRs through review of Annual Reports and Monitoring visits as required.
Technical Cooperation and Grant Financing
Pre signing: Technical and economic due diligence. EUR 5,100, funded from the Bank's own resources.
Post signing: Development of Green City and Climate Action Plan ("GCCAP") for the City. The cost of GCCAP will amount to approx. EUR 290.5 thousand to be financed by TaiwanBusiness - EBRD Technical Cooperation and Poland's Ministry of Finance.
Company Contact Information
+48 22 655 45 31
PSD last updated
07 Nov 2022
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