Extension of a sovereign loan of up to EUR 5 million to Georgia for the benefit of Bakuriani to expand the fleet of specialised vehicles and machinery aimed at improving the quality of the municipal services. The proceeds of the loan will also finance up to 10 units of buses.
The proposed investment will improve the quality of municipal services and safety measures in Bakuriani. The Project envisages procurement of modern buses for passenger transportation as well as equipment for solid waste management and specialised municipal works.
ETI score: 61
The proposed project is expected to address the Well-Governed and Inclusive transition objectives by supporting sector reforms and providing access to transport for the local population. The programme is further expected to build local capacity by providing trainings.
Georgia represented by the Ministry of Finance.
EBRD Finance Summary
€5 million sovereign loan to Georgia
Total Project Cost
The total project cost is €5 million.
The project will also benefit from the technical cooperation assignments to support project preparation and implementation.
Environmental and Social Summary
Categorised B (ESP 2014). Environmental and social impacts associated with the purchase and operation of the low emission EURO V diesel buses and municipal equipment will be mainly beneficial. Any potential adverse environmental and social impacts will be site-specific and manageable through implementation of good management practices. The Project will contribute to improving accessibility, mobility, safety and efficiency of urban transportation for all user groups, improved solid waste management and air quality in the City. The Project envisages establishment of Bakuriani Municipal Company, which shall implement relevant Environmental and Social Management systems in line with EBRD ESP and agreed ESAP.
Prior to construction of the bus depot facilities, which is outside the scope of EBRD financing, the municipality shall allocate an appropriate land plot that meets safety, security and sanitary requirements, requiring no physical and economic displacement. The Environmental and Social Due Diligence (ESDD) has been undertaken by an independent consultant and included an E&S audit of the Borjomi Transport Company, which will temporarily keep and operate vehicles before the establishment Bakuriani Municipal Company - the ultimate owner of the vehicles.
The assessment also included an analysis of environmental and social impacts and benefits associated with the Project to ensure the proposed specification for the buses and municipal vehicles will meet EU requirements. The Project will be implemented by Municipal Development Fund (MDF) - Bank's long standing partner in a similar assignment with a good track record and experience in delivering Projects in line with EBRD Performance Requirements (PRs). MDF possesses the required institutional capacity to assist the newly created municipal company in implementing the Project in compliance with ESP PRs.
The Bank will be supporting the newly established Company through a number of TCs that will encompass, inter alia, implementation of the Safety Management System, Traffic and Driving Safety Management.
The ESAP has been developed to focus on the newly established company and Project. The ESAP includes a number of recommendations were made to improve the operational health and safety practices, as well as environmental management aspects, the development of the Environment and Safety Management Systems in line with ISO 14001 and 45001 standards, obtaining of all the required E&S permitting and authorisations, introduction of environmental and safety monitoring, traffic and driving safety measures, fire safety and emergency preparedness, social and labour management system, inclusive of the grievance mechanism, as well and stakeholder engagement plan. The Bank will monitor the Company's activities through annual E&S monitoring reports.
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are included as part of this project:
- Technical and Economic Due Diligence. The estimated cost of the assignment is up to EUR 100,000, proposed to be financed by a bilateral or multilateral donor or the EBRD Shareholder Special Fund (the "SSF").
- Environmental and Social Due Diligence. The estimated cost of the assignment is up to EUR 75,000, proposed to be financed by a bilateral or multilateral donor or the SSF.
- Corporate Development Program. The estimated cost of the assignment is up to EUR 325,000, proposed to be financed by a bilateral or multilateral donor or the SSF.
- Skills for Local Economic Development Support. The estimated cost of the assignment is up to EUR 75,000 proposed to be financed by the SSF (Inclusion Framework)
Company Contact Information
Municipal Development Fund of Georgia 150, D. Agmashenebeli Ave., 0112, Tbilisi, Georgia
PSD last updated
28 May 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
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 firstname.lastname@example.org. 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 email@example.com to get guidance and more information on IPAM and how to submit a request.