Project Description
The provision of a senior loan of up to €5 million to the City of Belgrade for the implementation of energy efficiency and associated structural measures in 4 public buildings: Emergency Medical Institute, City Library, Student Healthcare Centre and Student Hospital. Most of the buildings were constructed in the 1920s and have not undergone any major refurbishment since then. The project is expected to bring significant energy efficiency improvements and will lead to the reduction of CO2 emissions. The Project will be co-financed by investment and technical assistance grants of up to €11 million provided by the European Union from the Instrument for Pre-Accession Assistance with the Republic of Serbia.
Project Objectives
The Project aims to support the substantial energy efficiency renovation of four public buildings located in Belgrade, Serbia. The works include the addition of thermal insulation, the repair of building envelopes, the upgrade of heating, ventilation and cooling systems, and the replacement of lighting systems. Energy efficiency improvements will result in energy cost savings, the reduction of carbon dioxide emissions and improved energy efficiency.
The Project forms part of the Bank's engagement with Belgrade under the EBRD Green Cities, as such it is considered as a follow-on investment under Green Cities Framework 2 Window II (the "GrCF2 W2") from Belgrade's Green City Action Plan (the "GCAP"), which was approved in June 2021.
Transition Impact
ETI score: 70
Primary TI Quality - Green:
The Project will primarily help to promote the Green transition quality as it facilitates the deep energy efficiency renovation of public buildings, contributing to mitigating climate change. It is a follow-on investment, addressing priority environmental challenges identified in the City's GCAP and will help reduce 517 tCO2eq of emission per annum (34 per cent from the benchmark) while resulting in 42 per cent energy savings.
Secondary TI Quality - Well-Governed
The Project will also support the Well-governed quality through assistance in reviewing EE potential in Belgrade and rolling out financing mechanisms for promoting EE investments through technical assistance and capacity building of the City administration and relevant stakeholders. The Project will support strengthening institutional capacity of the City and setting up a coordination mechanism for the EE agenda with developing a sustainable institutional setup.
Client Information
CITY OF BELGRADE
The City of Belgrade is a long-standing client of the Bank. Four projects are currently ongoing with the City and two City-owned Public Utility Companies. These projects include: GrCF Belgrade Green Boulevard (49267), Belgrade Public Transport and Traffic Infrastructure (42809), Belgrade Water (46465) and Belgrade Bus Renewal Programme (44014).
EBRD Finance Summary
EUR 5,000,000.00
EBRD Finance: €5.0 million
EU Grant: €10.52 million (including an investment grant of €8.79 million and technical cooperation grant of €1.73 million)
Total Finance: €15.52 million
Total Project Cost
EUR 15,520,000.00
Capital Expenditure: €13.79 million
Technical Cooperation for Project Implementation Unit Support, Energy Efficiency reforms in the City and supervision of works: €1.73 million
Total Project Cost: €15.52 million
Additionality
Financing Structure
- the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project.
- Public sector: the EBRD investment is needed to close the funding gap. At the same time, the EBRD does not compete with funding from other sources, such as from IFIs, government, commercial banks and/or complements them.
Risk Mitigation
- EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets.
- EBRD helps the client to mitigate carbon transition risks and take climate action, such as to move along a low carbon transition pathway.
- EBRD helps the client to mitigate physical transition risks and take climate action, such as to identify and manage physical climate risks and build resilience to them.
Standard Setting
- Client seeks/makes use of EBRD expertise over energy and resource efficiency and climate resilience financing via provision of energy and climate audits, minimum performance standards of technologies, climate related strategies and policies, monitoring, reporting and verification (MRV) systems etc.
Knowledge, innovation, and capacity building
- EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client.
Environmental and Social Summary
Categorised B (2014 ESP). This Project is expected to have significant benefits related to high quality energy efficiency measures (insulation and replacements of doors and windows) and structural improvements in four City-owned public buildings, resulting in improved energy efficiency and reduced emissions. The Project will enable reduction in CO2 emissions in the range 25-74 per cent depending on the building, which is equivalent to the total sum of 324 tonnes of CO2 emission avoided per year. Environmental and social due diligence (ESDD) was carried out by an independent consultant and included audit and assessment of Environmental and Social (E&S) project impacts. The findings of the ESDD showed that the Client is in compliance with national legislation and permitting requirements. No formalised EHSS (Environmental, Health, Safety and Social) management systems are in place, but the necessary E&S processes are developed on a project-by-project basis. The ESAP has been developed and will be agreed with the Client prior to signing. The ESAP includes requirements to develop an Environmental and Social (E&S) Policy, E&S Management System and E&S Management Plans to address the deficiencies, as well as to form the PIU and to increase internal capacities on E&S to fully comply with requirements of PR1. No National Environmental and Social Impact Assessment is required for this Project. A Framework Environmental and Social Management and Monitoring Plan (FESMMP) has been developed during ESDD, outlining E&S mitigation and monitoring measures to be followed during the reconstruction works. The independent supervising engineers will supervise the works. Based on the FESMMP, contractors will develop and implement a site-specific Construction E&S Management and Monitoring Plan (CESMMP) for each building, which will be included in the tender documentation and construction contractors' contract.
The City Administration's Collective Agreement is in place and is compliant with local legislation and core ILO Conventions. Additionally, the ESAP includes measures to monitor the contractors and subcontractors' performance, develop internal grievance mechanism and implement an awareness raising campaign on gender based violence and harassment (GBVH).
The pollution prevention and control will be ensured through ESAP measures to develop and implement a CESMMP, which will include a Waste Management Plan (WMP), Pollution Prevention Plan, Air Management Plan and Noise and Vibration Management Plan. It is not expected that the Project will generate asbestos waste, however the ESAP stipulates that the WMP includes protocols for asbestos removal (if any) and safe disposal as outlined in the FESMMP. OHS and community health and safety issues will be managed through construction site organisation and preparation of Traffic Management Plan in line with national requirements, as well as through implementation of Construction H&S Management Plan, including the community H&S measures in line with PR4. Each CESMMP will contain relevant sub-plans on topics such as emergency preparedness and fire safety. No permanent land acquisition, resettlement or economic displacement will be caused by the retrofitting of existing buildings. A Construction Site Organisation Plan and Traffic Management Plan will include mitigation measures to ensure appropriate access to the buildings is maintained. The project location is not planned in existing or planned protected area, Natura 2000 site, IBA or Ramsar site. Three out of four project locations are protected in line with local legislation for cultural heritage, and the relevant local authorities issued specific preservation requirements for reconstruction works. Additionally, 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 implementation of the reconstruction works. A Stakeholder Engagement Plan (SEP) which includes an external grievance mechanism, has been developed during the ESDD. The client 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 annual reports provided by the Client and site visits when deemed necessary.
Technical Cooperation and Grant Financing
Pre-signing:
TC1: Environmental and Social Due Diligence. € 24,710 funded by the EBRD Shareholder Special Fund ("SSF").
Post-signing:
TC2: Support in Project implementation, and review of EE potential and roll out of sustainable financing mechanisms in the City . Estimated cost of the assignment is €1 million, expected to be financed by the EU and implemented by indirect management by the Bank.
TC3: Supervision of works i Estimated cost of the assignment is €0,7 million, expected to be financed by the EU and implemented by indirect management by the Bank.
Company Contact Information
The City of Belgrade
gradonacelnik@beograd.gov.rs
+381 11 3229-678
https://www.beograd.rs/en/
Dragoslava Jovanovica 2,
Belgrade,
Serbia
PSD last updated
14 Dec 2021
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.
