UPTF2 - Kyiv City Transport II: Metro

Location:

Ukraine

Project number:

50836

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

25 Mar 2020

Status:

Signed

PSD disclosed:

15 Jul 2019

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

€ 50 million loan to Municipal Enterprise 'Kyivsky Metropolitan' (the "Company") to finance the procurement of 50 metro cars for the new metro line to Vynohradar district.

The Project is part of the Ukraine Public Transport Framework II (UPTF2) . The facility is designed to serve as a sector-wide catalyst for addressing key challenges in public transport in Ukrainian municipalities.

 

Project Objectives

The project addresses critical challenges (including, inter alia, congestion, air pollution, quality of public transport services, etc.) in Kyiv's urban transport development.

Transition Impact

ETI score: 60

The project is part of the Ukraine Public Transport Framework 2 (UPTF2) aimed to continue to serve as a sector-wide catalyst in addressing key challenges in public transport in Ukrainian municipalities i improvement in regulation and funding through the introduction of PSCs, support for private sector involvement in urban transport service provision and cost restructuring of incumbent public transport operators.  

The project promotes significant environmental improvements and supports the Green transition quality through improvement of air quality, GHG and air pollution reduction in the City of Kyiv.

The Project also pursues the well-governed quality through the implementation of updated CDP and PSC that will increase transparency and accountability in the relationship between the City and the public transport Company by establishing clear rights and obligations, incentives for greater efficiency and higher quality of services.

Client Information

KYIVSKY METROPOLITAN CE

Communal Enterprise "Kyivsky Metropolitan", public transport company wholly-owned by the City of Kyiv, is responsible for the provision of underground (metro) services. The underground infrastructure includes 3 lines (67.6 km long) with 52 stations, 115 escalators, three depots and 824 metro cars. The Company employs around 8,000 people.

EBRD Finance Summary

EUR 50,000,000.00

Total Project Cost

EUR 60,000,000.00

Additionality

 The additionality derives from the Bank's ability to offer a tenor above market average, which is necessary to structure the project; significant experience in the public transport sector in Ukraine and unique position for policy dialogue with the Government and the local authorities on sector issues (i.e. underinvestment, pollution, congestion and safety) and associated reforms. 

Environmental and Social Summary

Categorised B (ESP 2014). The project will bring substantial environmental and public health benefits through modernisation of the metro car fleet. It will increase 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. A modal shift to clean public transport as opposed to private cars and minibuses in the City will reduce the amount of CO2 emissions, particulate matter (PM), including black carbon, and nitrous oxides (NOx).

Environmental and social due diligence ("ESDD") for the project, which has been carried out internally 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.

 

Technical Cooperation and Grant Financing

Post-signing:

  • TC1: Project Implementation Support. The TC will support the PIU with preparing procurement documentation, carrying out the tender and contract implementation. The estimated total cost of this assignment is up to EUR 200,000, proposed to be financed from the Framework-level PIU TC, funded by the EU MPSF.

  • TC2: Corporate Development Program ("CDP") and Stakeholder Participation Programme ("SPP"). The TC will support an update and implementation of the CDP and SPP as well as PSC by the Company ensuring financial and operational performance improvement at the Company level. The estimated cost of this TC assignment is up to EUR 70,000, expected to be financed from the Framework-level CDP TC, funded by the EU MPSF.

Company Contact Information

Barginsky Dmytro
referent_n@metro.kiev.ua
+38 (044) 238-44-21
+38 (044) 238-44-46
http://www.metro.kiev.ua/
03056, Kyiv, 35 Peremohy Ave

PSD last updated

16 Mar 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 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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