Novi Sad - Bus Fleet Renewal

Location:

Serbia

Project number:

51441

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

10 Dec 2019

Status:

Signed

PSD disclosed:

07 Oct 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

Provision of debt financing to Javno gradsko saobracajno preduzece Novi Sad (the "company", or the "client"), a public transport company fully owned by the city of Novi Sad (the "city") to finance the acquisition of 30 Compressed Natural Gas (CNG) buses (25 solo and 5 articulated) to renew its bus fleet (the "project").

The project is a sub-project under the Green Cities Framework 2 ("GrCF2") which is established to provide loans to governments, municipalities, municipal owned and private companies providing municipal services. The over-arching aim of the GrCF2 is to serve as a sector-wide catalyst for addressing environmental challenges at the municipal/city level. This is underpinned through the implementation of a Green Cities Action Plan ("GCAP"), which is a strategic document whereby environmental challenges are benchmarked, priority areas for environmental improvements identified, environmental objectives defined and indicative investments determined.

Project Objectives

Contributing to the improved quality of bus transport service in the city and enhancement of sustainable mobility solutions.

Transition Impact

The project contributes to the "green" transition impact quality through environmental benefits arising from improved local air quality by reducing air pollution emissions. Also, the project contributes to the "well governed" transition impact quality by supporting the city to develop its GCAP. The plan will introduce improvements in local planning and coordination of infrastructure development in medium and long term, as well as strengthen institutional capacity of the city.

Client Information

PUBLIC TRANSPORT COMPANY OF THE CITY OF NOVI SAD

 "Javno gradsko saobracajno preduzece Novi Sad", a public transport company fully owned by the city of Novi Sad.

 

EBRD Finance Summary

EUR 7,000,000.00

Up to EUR 7 million senior loan to the company.

Total Project Cost

EUR 7,000,000.00

Up to EUR 7 million.  

Environmental and Social Summary

Categorised B (2014 ESP). Any environmental and social impacts potentially associated with the project will be site-specific and addressed through appropriate mitigation measures. An environmental and social due diligence ("ESDD") 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 was completed by independent consultants and confirmed that the project is structured to be in line with the EBRD's Performance Requirements ("PRs").

The project consists of purchasing of up to 30 buses as part of an ongoing fleet renewal programme. Total expected annual emissions savings (tonnes/year) are 2,595 t CO2 (71% savings on current emissions), 0.95 t particle matter (98% savings on current emissions) and 16.38t NOx (84% savings on current emissions). All the new buses will have wheelchair lift access and allocated areas for the disabled people.

The company does not have a formally certified environmental, health and safety services management system; however the ESDD identified that overall environmental, health and safety issue was well managed and well resourced, and that the company has the institutional capacity to implement the project in compliance with the Bank's PRs and Serbian legislation.

Employment conditions, remuneration and social protection terms are defined in the company Collective Agreement and employment contract, and are in line with Serbian Labour Law and EBRD PR2. The company has three trade unions, and a company's Grievance Mechanism is in place.

On the company depot site, oil-water interceptors are present on the drainage network and monitoring results of wastewater discharges from 2018 show that most parameters comply with the municipal standards, with only few occasional exceedances. Two gas fired boilers, each 1,600 kW, fall under the scope of the EU Medium Combustion Plants Directive, and a paint shop and laundry (dry-cleaning process using perchloroethylene) fall under the scope of the EU Industrial Emissions Directive. Currently there is limited air monitoring system; company will undertake an air monitoring campaign to assess compliance with the EU Directives and develop and implement corrective measures in case of non-compliance. The ESDD also confirmed that the waste management system is well organised and compliant with legal requirements.

An Environmental and Social Action Plan has been agreed with the company, in order to address the areas for improvement identified during the ESDD. The Environmental and Social Action Plan requires air emissions monitoring, improved hydrocarbon handling practices, formal survey for asbestos containing materials at site, depot fire and explosion risk assessment revision prior to purchase of additional CNG buses, and provision of road safety training for bus drivers. A Stakeholder Engagement Plan has been developed by the ESDD Consultant and will be implemented by the client. The EBRD will monitor the project through annual environmental and social reports provided by the company, and site visits if necessary.

Technical Cooperation and Grant Financing

Pre-signing:

  • Technical, financial and environmental due diligence, including technical review of proposed purchase, preparation of financial models and all environmental and social aspects.
  • Advanced procurement support, to assist the city with the preparation of tender documents and handling procurement process.

Post-signing:

  • Green Cities Action Plan for the city of Novi Sad in order to prioritise investments, capacity building and policy objectives in support of the green agenda.

Company Contact Information

Milovan Amidzic
gspns@gspns.rs
www.gspns.co.rs
Futoski put 46, 21000 Novi Sad, Serbia

PSD last updated

27 Dec 2019

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.

Project Complaint Mechanism (PCM)

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 accountability mechanism.

The accountability mechanism 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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