GrCF2 W2 E2 - Sarajevo E-Tram Extension

Location:

Bosnia and Herzegovina

Project number:

53118

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

12 Jul 2022

Status:

Approved

PSD disclosed:

29 Jul 2022

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

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").

Project Objectives

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.

Transition Impact

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.

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

The borrower is Bosnia and Herzegovina ("Borrower").

EBRD Finance Summary

EUR 25,000,000.00

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

EUR 34,768,200.00

The total estimated project cost is EUR 34.8 million including capital investments and donor-funded technical assistance (consultancy services).

Additionality

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

Emir Hota
emir.hota@ms.ks.gov.ba
+387(0)33 562-058
+387(0)33 562-059
www.ms.ks.gov.ba
71 000 Sarajevo, Reisa Dzemaludina Causevica 1

PSD last updated

29 Jul 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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 compliance@ebrd.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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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