By 21-Oct-2021, the EBRD signed a provision of a loan of up to EUR 21 million to the City of Iasi to finance energy-efficiency enhancement investments in public buildings that include: i) rehabilitation of 15 public buildings owned by the city, and ii) reconstruction of a new bus and tram depot, designed and equipped for 32 trams and 44 electric buses.
The project is proposed under Green City Framework 2 ("GrCF2") which will be complemented by technical cooperation ("TC") facilitated by the Bank for the development of a Green City Action Plan ("GCAP") to identify, prioritise, and address environmental challenges through a multi-sector approach.
By December 2022, the EBRD is extending the original loan to cover some cost overruns associated with the original project. The amount of the loan extension is EUR 30m.
The proposed investments aim to improve energy efficiency, reduce pollution and save resources in excess of 20 per cent by implementing key investments in a pool of 15 public buildings and by modernising a bus and tram depot, preparing it for the new electric bus fleet, ultimately improving the environment and life standards in Iasi region.
At the same time, the Project will play an instrumental role in the development and implementation of the Green Cities Framework which will support a strategic and multi-project approach in order to identify, prioritise and address environmental challenges at the city level.
ETI score: 70
The Green Cities Framework II (GrCF2) represents a strategic and multi-project approach seeking to help identify and address environmental challenges in selected large cities in our countries of operation. The primary goal is to achieve significant environmental improvements and to promote the Green transition quality within the relevant cities. In addition to the environmental objective, the GrCF2 also promotes sustainable cities through inclusive, resilient, well-governed and smart urban development. Depending on which area can generate the strongest and most relevant transition impact, either Well-governed, Inclusive, Resilient or Competitive will be pursued and presented as the secondary transition quality for each sub-project under the framework. These transition objectives are supported by the development and implementation of a city-specific Green City Action Plan (GCAP) aiming to identify environmental challenges, facilitate better coordination and buy-in among stakeholders and help to prioritise and develop the best ways to address the environmental challenges through targeted investments, services and policy instruments.
The Project will primarily help to promote the Green transition quality by bringing significant energy and CO2 savings to the City's buildings and urban transport fleet. It is expected that the Project will achieve a total CO2 eq. emissions reduction of 1,307 tonnes/year, and energy savings of 4,205 MWh/year.
The Project will also support the Resilient objective through the introduction of long term asset management practices and crisis resilience planning in the municipal system, so as to ensure continuity of public services and sustainability of public infrastructure.
CITY OF IASI
The City of Iasi (the "City") is one of the largest cities in Romania, with a population of around 400,000 and is the administrative seat of Iasi County (population of around 773,000). Public transport services are provided by CTP Iasi, a public transport company owned by the City, on the basis of a 10-year public service contract (PSC), developed with the bank's assistance. CTP Iasi operates a fleet of 126 trams and 140 buses, with 40 new electric buses to complete the fleet.
EBRD Finance Summary
Total Project Cost
The Bank is additional because of its:
- Terms: The Bank will provide necessary long-term financing for energy efficiency measures in public infrastructure. Due to the existing market inefficiencies, such financing is not readily available from commercial banks.
- EBRD attributes: EBRD's extensive energy efficiency knowledge and long-standing relationship (including policy dialogue) with the City and ability, through the Green Cities Action Plan process, to pursue the green agenda and gender and inclusion considerations.
Environmental and Social Summary
Categorised B (2019 ESP). Environmental and social due diligence ("ESDD") of the proposed investment was undertaken by independent consultants as part of the Feasibility Study. The ESDD showed that the energy efficiency measures will bring substantial environmental and social benefits. The ESDD confirmed that the Project is structured to meet EBRD's Performance Requirements ("PRs"). The City is an existing Client and has the institutional capacity to implement the project in compliance with the Bank's PRs and with national legislation. ESDD also concluded that any adverse environmental and social impacts of the project will be site-specific, mainly restricted to the construction phase. These include occupational health and safety risks, waste management and temporary loss of access to parts of public buildings, and they will be addressed through appropriate mitigation measures.
An Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Client. ESAP includes requirements to appoint environmental and safety managers and development of EHS and waste management plans. Information on sub-projects will be disclosed at sites and online, including the grievance mechanism. For buildings where asbestos is identified, an asbestos management plan will be developed and implemented as part of the project. The City will also pursue higher inclusion and gender standards as part of GCAP. Monitoring of the project and ESAP implementation will be carried out via annual environmental and social reports provided by the client.
Technical Cooperation and Grant Financing
- TC1: Energy Efficiency in Public Buildings. The cost of this assignment was EUR 74 thousand and financed from the Global Environment Fund ("GEF 2").
- TC2: Project Preparation and Procurement - New Bus and Tram Depot. The cost of this assignment was EUR 75 thousand and financed from the Infrastructure Europe Team Budget.
- TC3: GCAP : The cost of this assignment is EUR 350 thousand and financed from the TaiwanBusiness - EBRD TC Fund.
- TC4: Procurement Support: The estimated cost of this assignment is EUR 75,000 to be financed from SSF under existing Framework TC Programme for Enhancing Public Procurement Practices.
Company Contact Information
Primaria Municipiului Iasi
Bd. Stefan cel Mare si Sfant nr. 11, 700064 Iasi
PSD last updated
13 Oct 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.
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 email@example.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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.