Provision of a sovereign loan of up to EUR 5 million to the Government of Kosovo to be on-lent or on-granted to the municipality of Pristina (the "Municipallity" or "Pristina") to co-finance energy efficiency ("EE") measures in municipally owned buildings, including kindergartens, schools, and primary healthcare centres (the "Project").
The Project will be co-financed with an investment grant of EUR 1 million from the Regional Energy Efficiency Programme for the Western Balkans ("REEP") funded by the European Union.
- Improvement of the environmental sustainability of municipally owned buildings in Pristina by implementing EE measures that will lead to energy savings and reduction in CO2 emissions.
- Promotion of private sector involvement in design and implementation of energy saving projects.
ETI score: 70
The Project is part of the Green City Framework 2 (GrCF2), a strategic and multiproject approach targeting environmental issues in selected large cities in EBRD's countries of operation. The primary goal is to achieve significant environmental improvements and promote the green transition quality within the relevant cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination among various stakeholders within the relevant cities in order improve the governance, operational efficiency and financial sustainability of the targeted green investments and initiatives. These objectives are supported by the development and implementation of a city-specific Green City Action Plan ("GCAP") which identifies and prioritises environmental challenges and ways to address them through targeted investments, services and policy instruments.
The Beneficiary of the Project is the municipality of Pristina. Pristina is Kosovo's capital and largest municipality (210,000 inhabitants) as well as its administrative and commercial centre.
EBRD Finance Summary
A sovereign loan to the Governmetn of Kosovo to be on-lent or on-granted to the municipality of Pristina.
Total Project Cost
The total estimated project cost is approximately EUR 7.8 million including Technical Assistance.
- Financing Structure - Commercial long-term financing for public infrastructure investments is not yet available in Kosovo. Morover, Kosovo Kosovo has no access to international capital markets.
- Risk Mitigation - The proposed investment will result in energy savings and lower GHC emission, thereby reducing carbon transition risks and take climate action.
- Standard Setting - Technical Assistance and loan conditionalities will support capacity building.
Environmental and Social Summary
Categorised B (2014 ESP). The Project will have significant benefits related to high quality energy efficiency measures resulting in improved energy efficiency (EE) and reduced emissions in 47 municipally owned public buildings in the municipality of Pristina, such as kindergartens, schools, and primary healthcare centres. Environmental and social due diligence (ESDD) was comprised of an audit carried out by an independent consultant and included site visit to 11 selected buildings. The EE measures will include installation of variable speed pumps in heating systems and replacement of the heating source, thermal insulation of facade, thermal insulation of roof and installation of new windows and doors. These measures will generate around 60% annual energy savings and 83% annual avoided CO2 emissions, equivalent of 7,000 tonnes per year.
The Municipality does not have an environmental and social (E&S) policy, nor does it operate an Environmental, Health, Safety and Social Management System. The Environmental and Social Action Plan (ESAP) requires the Municipality to assign responsibility for environmental, health, safety and social management at the project implementation unit (PIU) to ensure adequate management of environmental, health and safety (EHS) aspects during the Project. A Construction Phase Environmental, Health, Safety and Social Management Plan (CESMP) will be developed and implemented by the contractor. The CESMP will include construction health and safety, construction environmental controls, plans for community health and safety, and emergency preparedness and response plans.
The ESAP requests the development and implementation of a project-specific human resources policy aligned with PR2. All the contracts are in line with the Law on Labour.
Occupational health and safety issues at the majority of the visited sites were managed appropriately, with the exception of the asbestos findings at some of the sites where there is potential exposure of employees and clients in some structures. The ESAP requires to conduct an intrusive asbestos survey and, where asbestos has been identified, to evaluate the risks to workers and communities and where necessary implement measures to reduce the risks of exposure to asbestos fibres. Asbestos surveys will be conducted together with the energy audits in each Project building. The thermal insulation of walls and roofs will be suitably fire-rated by the supplier, as prescribed in national standards. The ESAP requests that the design engineer submit a fire safety report to the Municipality; the external walls of the buildings shall adequately resist the spread of fire over the walls and from one building to another, having regard to the height, use and position of the building.
Some of the 47 buildings are on the list of buildings which are under protection of UNESCO, thus special considerations for these sites must be taken into account, such as obtaining the consent of the Kosovo Council for the Cultural Heritage.
The Municipality maintains their own official webpage, which is regularly updated and will inform the stakeholders prior to the project commencement. The grievance mechanism is already in place (via website portals designated for this purpose). A stakeholder engagement plan has been developed during the ESDD in accordance with EBRD requirements.
The Bank will monitor the Project through annual environmental and social reports provided by the Municipality, and site visits if necessary.
Technical Cooperation and Grant Financing
- Feasibility Study of the Project
- Procurement and Implementation Support to the Project Implementation Unit.
- Assistance to the Municipality with the development of a GCAP in order to prioritise investments, capacity building and policy objectives in support of the green agenda.
Company Contact Information
PSD last updated
15 Feb 2022
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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.
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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.
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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.
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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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.