Construction of two tram track lines from Ilidza to Hrasnica, including the construction of a U-turn in Hrasnica (12.96 km in total length), and 20 new tram stations on this route (the "Project").
The Project is part of the EBRD's Green Cities Framework 2 - Window II Extension 2 (the"Framework") and was identified as a priority project under the Canton's Green City Action Plan ("GCAP").
Reduction of traffic congestion, especially during the rush hours, by providing better, faster and greener urban transport service alternatives, thus promoting the shift from the usage of personal vehicles and diesel buses to cleaner public tram transport service.
ETI score: 70
The Project will primarily help to promote the Green transition quality by development of electric public transport that will significantly reduce the use of diesel busses on the route as well as target the shift from the use of private cars to cleaner public transport. The investments will result over 85 per cent reduction of CO2 emissions and reduction of other pollutants as SO2, NOx PM2.5, and PM10.
The Project will also support the Well-Governed objective through provision of assistance to Sarajevo for developing a Corporate Development Programme ("CDP"), Gender Action Plan ("GAP") for the successor of the Canton's incumbent public transport operator KJKP GRAS, as well as development of the Staff Retrenchment Plan ("SRP") for KJKP GRAS.
BOSNIA AND HERZEGOVINA SOVEREIGN
The borrower is Bosnia and Herzegovina ("Borrower").
EBRD Finance Summary
A sovereign loan of up to EUR 25 million to the Borrower (the "Loan"). The Loan will be on-lent through a legislated cascade of sub-loans from the BiH via the Federation of Bosnia and Herzegovina ("FBiH") to the Client.
Total Project Cost
The total estimated project cost is EUR 34.8 million including capital investments and donor-funded technical assistance (consultancy services).
The additionality sources are: (i) the financing structure; (ii) the policy, sector, institutional or regulatory change; and (iii) standard-setting: helping projects and clients achieve higher standards, including higher inclusion of women in the public transport sector.
Environmental and Social Summary
Categorised B (2019 ESP). This Project is expected to have significant benefits related to reduction of air pollutants and will result in air quality improvements and thus contribute in addressing Sarajevo's severe air quality issues. Based on the calculation for the base case scenario, the Project will enable reduction in CO2 emissions of 34,398t (85.73%), 0.12t (100%) in SO2, 166.4t (100%) in NOx, 4.7t (100%) in PM2.5, and 4.7t (100%) in total during 2023-2047 period due to switching buses to tram service.
Environmental and social due diligence ("ESDD") was carried out by an independent consultant and included an audit and assessment of Environmental and Social ("E&S") project impacts in line with EBRD's E&S Policy and Performance Requirements ("PR"). The scope of the ESDD was focused on the existing public transport company KJKP GRAS, however, the future operation of the trams track and trolleybuses will be transferred to a new public transport company, which is to be established. The ESDD was therefore structured to cover the Canton as the owner of the tram track and the Ministry of Transport as the owner and operator of the project through KJKP GRAS.
The findings of the ESDD showed that the Canton, Ministry of Transport and the Company operate in line with national environmental, occupational health and safety ("OHS") requirements, however no formalised EHSS (Environmental, Health, Safety and Social) management systems are in place both at the level of the Canton and transport service company GRAS, currently operating the public transport. The Environmental and Social Action Plan ("ESAP") prepared for the Project includes requirements to: (i) develop an ESMS, (ii) E&S Management Plans for construction and operational phases to address the deficiencies of E&S risk management and increase of internal capacities on E&S to fully comply with requirements of PR1. A national Environmental screening and obtaining of the Water Permit are required for this project and therefore stipulated within the ESAP.
Labour issues regarding the restructuring or potential dissolution of KJKP GRAS with potential staff losses are addressed in the ESAP, which stipulates the measure to timely develop SRP in line with PR2 and national requirements. The Project includes technical assistance aimed at helping the Canton with establishing the new company, staffing, set-up and implementation of the necessary policies and procedures, including the GAP. This Technical Cooperation ("TC") will also need to ensure alignment with PR2 requirements and national law. Additionally, the ESAP includes requirement to develop internal grievance mechanism and implement measures to prevent gender based violence and harassment ("GBVH").
The pollution prevention and control will be ensured through ESAP measures to develop and implement a Construction E&S Management Plan and Waste Management Plan, and regular maintenance of oil separators during operational phase. The flood risk has been assessed as part of ESDD and flood prevention measures included in the ESAP both for the project and for existing flood resilience structures in the area.
OHS and community health and safety issues will be managed through construction site organisation and preparation and implementation of Traffic Management Plan and Construction H&S Management Plan in line with PR4 and the ESAP. A Safety Audit of the tram track design, tram stations, and traffic and public safety is stipulated in ESAP, to be undertaken prior to or during the construction phase to identify any community H&S risks and define additional specific health and safety measures needed.
The land has been acquired in the past and the area for construction of the tram track secured, however some limited land acquisition and economic displacement will be needed at the area of the tram turnarounds, therefore the ESAP stipulates the measure to develop Resettlement Plan in line with PR5 prior to signing.
The Project location is not planned in existing or planned protected area, Natura 2000 site, IBA or Ramsar sites. There are no cultural heritage sites in the area of the Project footprint. ESAP includes the measure to develop the Chance Find Procedure to cover the protocols and mitigation measures for any unknown artefacts that may be found during construction works. A Stakeholder Engagement Plan ("SEP") which includes an external grievance mechanism, has been developed during the ESDD. The Canton maintains its own official webpages, and will publicly disclose the SEP and Non-Technical Summary. The Bank will monitor the implementation of the Project through review of semi-annual and annual reports provided by the Canton and site visits when deemed necessary.
Technical Cooperation and Grant Financing
TC1: Environmental and Social Due Diligence - financed by the EBRD Shareholder Special Fund ("SSF").
TC2: Advance Procurement support - financed by the SSF.
TC3: Development and implementation of CDP, including GAP and SRP - to be financed by the High-Impact Partnership on Climate Action ("HIPCA").
TC4: Development of a programme for awarding of bus and minibus lines to private companies - to be financed by HIPCA.
TC5: Design of the Trolleybus Depot - to be financed by HIPCA.
Company Contact Information
71 000 Sarajevo, Reisa Dzemaludina Causevica 1
PSD last updated
29 Jul 2022
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Independent Project Accountability Mechanism (IPAM)
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