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.
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.
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.
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 million sovereign loan to Georgia.
Total Project Cost
The total project cost is EUR 24,57 million, including local contribution.
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.
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.
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
995 32 2437001
995 32 2437077
3rd Floor, #150 D. Aghmashenebeli Ave., 0112, Tbilisi, Georgia
PSD last updated
23 Jul 2020
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