Georgia Urban Transport Enhancement Programme

Location:

Georgia

Project number:

50842

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

02 Sep 2020

Status:

Signed

PSD disclosed:

30 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

The proceeds of the loan to Georgia for the benefit of secondary cities, which include Kutaisi, Gori, Telavi, Zugdidi, Rustavi and Poti ("Project Cities"), will finance approximately 175 units of modern diesel (Euro 5) buses.

Project Objectives

The goal of the Project is to establish regular bus services in each Project City, through the capacity enhancement of the existing transport companies and the establishment of new transport companies, where needed.

Transition Impact

ETI score: 63

The Project will have the following Transition Impact:

Well-governed. As part of the post-signing Technical Cooperation (TC) a Corporate Development Programme will be introduced for all Project Cities, including the preparation of a cost recovery methodology for bus operations. The Bank will also support the municipalities with development and adoption of Public Service Contracts (PSC). 

Inclusive. The Project Cities will enhance their equal opportunities policies and gender-responsive design and service provision practices with EBRD technical support, with a view to promote gender equality across both workforce and operations. The Project will in addition target regional inclusion by opening up local training for the transport sector in less developed regions of the country.

Client Information

GEORGIA SOVEREIGN

The Borrower is Georgia represented by the Ministry of Finance. The Project is implemented by the Municipal Development Fund of Georgia ("MDF").

EBRD Finance Summary

EUR 19,000,000.00

EUR 19 million sovereign loan to Georgia.

Total Project Cost

EUR 22,060,000.00

The total project cost is EUR 24,57 million, including local contribution.

Additionality

EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. Moreover, EBRD expertise in the sector will support application of enhanced standards.

 

Environmental and Social Summary

Categorised B (ESP 2014). Acquisition and operation of Euro V buses is expected to have mostly beneficial effects. The Project will support overall improvement of local municipal transport system and contribute to the reduction of air pollution. Any potential adverse environmental and social ("E&S") impacts are expected to be site-specific and manageable through the implementation of the Environmental and Social Action Plan ("ESAP"). The Environmental and Social Due Diligence ("ESDD") has been undertaken by an independent consultant and included a review of the applicable environmental, safety and social requirements, with particular focus on gender and inclusion, current E&S management practices, existing operations as well as an analysis of environmental and social impacts and benefits associated with the Project to ensure the proposed specifications for the equipment meet EU requirements. General health and safety recommendations were also developed for the bus depots construction, which will be a separate project financed by the Government. Site visits and meetings were carried out with the selected municipalities, Ministry of Environmental Protection and Agriculture of Georgia and the MDF, which is the implementing agency for the Project.  The key issues identified during the ESDD include insufficient enforcement of health and safety requirements, traffic and driver safety, and lack of adequate infrastructure for vehicles maintenance. An ESAP has been developed and agreed to address the identified issues and includes requirements to comply with national health and safety rules, improvements of driving safety, implementation of the proper E&S management system, grievance mechanism emergency preparedness. The Borrower has agreed on the specific institutional arrangements to ensure that the Project is implemented throughout the whole lifecycle in compliance with the EBRD'S Environmental and Social Policy ("ESP"). The MDF will be acting as the PIU helping municipalities implement EBRD's ESP and ESAP requirements and in delivering the required TC support as well as performing periodic monitoring and annual reporting. SEP and NTS were developed as part of the ESDD. The Project will be monitored by EBRD through a customised annual environmental and social report form.

Technical Cooperation and Grant Financing

A comprehensive TC package is envisaged to be deployed in support of the Project.  

Pre-Signing: 

TC 1: Technical and Economic Due Diligence and Pre-signing Procurement Support. The cost of the assignment is EUR 75,000, financed by the EBRD Shareholder Special Fund (SSF).

TC 2: Environmental and Social Due Diligence. The cost of the assignment is EUR 75,000, financed by the SSF.

 

Post-Signing:

TC 3: Corporate Development Programme and Transport Reform Study. The estimated cost of the assignment is up to EUR 1.5 million, proposed to be financed by an international donor or the SSF.

TC 4: Gender Advisory Services Programme. The estimated cost of the assignment is up to EUR 0.5 million, proposed to be financed from the EBRD's Gender Advisory Services Framework, funded by the SSF.

Company Contact Information

George Shengelia
mdf@mdf.org.ge
995 32 2437001
995 32 2437077
mdf.ge
3rd Floor, #150 D. Aghmashenebeli Ave., 0112, Tbilisi, Georgia

PSD last updated

23 Jul 2020

Understanding Transition

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

Business opportunities

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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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