UPTF - Zhytomyr Trolleybus

Location:

Ukraine

Project number:

48237

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

13 Nov 2018

Status:

Disbursing

PSD disclosed:

28 Apr 2020

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

Provision of a senior loan of up to EUR 10 million to Communal Enterprise "Zhytomyrske Tramvaino-Troleybusne Upravlinnya" (the "company") consisting of a loan of up to EUR 9 million from the EBRD ordinary capital resources and a loan of up to EUR 1 million from the Clean Technology Fund (the "CTF") resources administered by the Bank's CIF Special Fund.

The loan is expected to be co-financed by an investment grant of up to EUR 2 million ("grant") from the EU Neighbourhood Investment Platform ("NIP"). 

The proceeds of the loan and the grant will be used to finance: (i) the acquisition of up to 50 new trolleybuses and related maintenance and diagnostic equipment, and (ii) the extension of the trolleybus network (construction of power substations and catenary network).

The loan is the eighth sub-project under the Ukraine Public Transport Framework ("UPTF") consisting of municipal-guaranteed loans to public transport companies in Ukraine to facilitate critical improvements in public transport infrastructure in a number of cities across Ukraine.

Project Objectives

The project will address key challenges in the development of Zhytomyr's public transport infrastructure by improving both the access to clean urban transport and the capacity and efficiency of public transport services. The Bank's investment will enable the company to increase the efficiency of trolleybus operations through improved accessibility, modernised infrastructure, increased average service speeds and decreased maintenance intensity and costs.

Transition Impact

ETI score: 60

The transition impact will be derived from the well-governed quality through the introduction of a public service contract (PSC) and new route tendering rules. The introduction of a PSC will enable service support payments based on a price per vehicle-kilometre or passenger-kilometre and the implementation of an agreed service plan. In addition, new route tendering rules adopted by each municipality will help reduce discrimination between public and private operators.

The project will also support the company in implementing restructuring measures supported by technical cooperation-financed corporate development plans (CDPs), enhancing the competitive quality.

Client Information

ZHYTOMYRSKE TRAMVAINO - TROLEYBUSNEUPRAVLINNYA CE

 

 

 

EBRD Finance Summary

EUR 9,000,000.00

Total Project Cost

EUR 12,000,000.00

Additionality

Terms: The market for long-term municipal borrowing for municipal infrastructure projects in Ukraine is very limited; local bond and loan markets offer short maturities, other IFI facilities require sovereign backing.

Attributes: The Bank is uniquely positioned for dialogue with the government and the local authorities on sector issues (e.g. underinvestments, high pollution, congestion and safety) as well as to mobilise relevant concessional funds. The Bank has accumulated substantial experience across Ukraine with public transport operations.

Conditionalities: EBRD conditionalities significantly exceed commercial banks' requirements.

Environmental and Social Summary

Categorised B (ESP 2014). The project will bring substantial environmental and public health benefits through modernisation of the trolleybus fleet, contributing to improving air quality in the City,  increasing the accessibility and mobility for all user groups and improving overall quality, safety and efficiency of urban transportation. Any adverse impacts will be site specific and addressed through appropriate mitigation measures.

 

Environmental and social due diligence ("ESDD") for the project, which has been carried out iternally included an environmental and social analysis of the proposed investment as well as a review of environmental, social, health and safety policies and procedures and the capacity of the company to manage risks associated with the proposed Project in line with the EBRD's Performance Requirements ("PRs").

 

The ESDD identified that the Company has the institutional capacity to implement the Project in compliance with the Bank's PRs, and is compliant with Ukrainian legislation, however it was noted that the Company needs to improve its maintenance workshops and sanitary & hygienic facilities for its workers and ensure effective operation of the washing station and treatment facilities. Project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, it is confirmed that the project will not have significant adverse social impacts to local communities or other project affected parties, nor will the project require the acquisition of lands or result in involuntary resettlement or economic displacement.

 

An Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Company to address the areas for improvement identified during the ESDD and carry out the necessary mitigation measures which will enable the Company to comply with national regulations and the Bank's PRs. The ESAP covers development and implementation of the Environmental Management and Occupational Health & Safety Management Systems (including improvement of sanitary and hygienic conditions for the Company employees) as well as development and implementation of a Stakeholder Engagement Plan. The environmental and social performance of the project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary. The project will be monitored through annual E&S reports.

Technical Cooperation and Grant Financing

Pre-signing:

TC1: Technical and Financial Due Diligence

TC2: Audit and restatement of the Company's accounts in accordance with IFRS

Post-signing:

TC3: Project Implementation Support

TC 4: Corporate Development Programme and Stakeholder Participation Programme ("SPP")

Company Contact Information

Serhii Lazarev
zt-tty-sekr@ukr.net
(0412) 33-40-32
https://ttu.zt.ua/
11 Vitruka Street, Zhytomyr, Zhytomyrska oblast, 10025, Ukraine

PSD last updated

28 Apr 2020

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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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