GrCF2 W2: Bishkek Buses

Location:

Kyrgyz Republic

Project number:

51598

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

17 Nov 2020

Status:

Approved

PSD disclosed:

18 Nov 2020

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision ofa  sovereign loan of up to € 25.0 million to the Kyrgyz Republic to be on-lent to the City of Bishkek  for the benefit of Bishkekskoe Passazhirskoe Avtotransportnoe Predpriyatie (BPATP). The project includes financing the rehabilitation of a bus depot and a purchase of urban buses that run on compressed natural gas ("CNG").

Project Objectives

The Project will provide Bishkek with a new bus fleet that will improve the reliability and quality of public transport services, improve air quality and reduce GHG emissions by replacing the existing outdated diesel buses with lower emission CNG buses. The Project will allow the BPATP to renovate the depot, significantly expand its operational fleet, resume service on all of its abandoned routes and start serving new routes in recently developed city areas. It will also stimulate modal shift from private cars back to public transport. The institutional capacity of BPATP will be increased, through the corporate development programme envisaged within the Project.

The Project will also contribute to the City administration's effort to fight the Covid-19 pandemic through the replacement of minibuses on City routes with long buses and additional measures through the following ways: (i) better social distancing; (ii) reduction of passengers' contact with drivers; (iii) new buses will allow for suitable hygiene measures to be implemented, notably regular disinfection; and (iv) technical support  to prepare BPATP's procedures for preventing the spread of the Covid-19 and alike illnesses. 

Transition Impact

ETI score: 70

The Project will contribute to achieving the Green Cities Framework's objectives through the following TI qualities:

  • Green (primary quality): the Project will help the City address air pollution concerns and reduce transport related GHG emissions by supporting a modal shift to public transport characterised by larger capacity and higher environmental standards. The Project will also covenant the development of Bishkek's Green City Action Plan ("GCAP") to identify and address its most pressing environmental challenges.
  • Well governed (secondary quality): The Project will support (i) GCAP development, which will introduce improvements to local planning and infrastructure development coordination in the medium and long term, as well as strengthening the City's institutional capacity; (ii) CDP preparation to improve BPAP's operational and commercial standing; (iii) signing and implementing the first bus operator Public Service Contract ("PSC") in Bishkek; and (iv) fare increases, which will be covenanted in the Project agreement.

Client Information

KYRGYZ REPUBLIC SOVEREIGN

The EBRD will provide a sovereign loan to the Kyrgyz Republic ("KR"). The loan will be  on-lent  to the City of Bishkek (the "City") for the benefit of Bishkekskoe Passazhirskoe Avtotransportnoe Predpriyatie (the "BPATP"). Project entity, BPATP, is a municipal company  responsible for rendering bus transportation services in Bishkek.

EBRD Finance Summary

EUR 25,000,000.00

The EBRD loan will be split into two tranches : Tranche I of € 16 million and Tranche II of € 9 million. The Project is expected to be co-financed with a capital grant of up to  € 8 million from the EBRD Shareholder Special Fund (SSF) and/or international donors.

Total Project Cost

EUR 33,000,000.00

Loan financing: € 25,000,000

Grant financing: € R 8,000,000

Additionality

The Bank is additional because it will provide long-term financing that is currently not available from commercial banks. The Bank will help the Company achieve higher standards (lower emissions, access for disabled people and procurement standards) and will further support the City and the sector through GCAP development, the PSC signing and tariff reform.

Environmental and Social Summary

Categorised B (ESP 2014). Any environmental and social impacts potentially associated with the Project, will be site-specific and addressed through appropriate mitigation measures. An environmental and social analysis 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 the independent consultants. 

The environmental and social due diligence ("ESDD") showed that the project will bring substantial environmental and public health benefits through modernisation of the bus fleet, will improve air quality in the City, accessibility and mobility for all user groups and improve overall quality, safety and efficiency of urban transportation.  The project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, it is confirmed that the project will not have significant adverse social impacts to local communities or other project affected parties, nor will the project require the acquisition of land or result in involuntary resettlement or economic displacement. The Company does not currently plan any labour restructuring or redundancies.

The ESDD identified that the Company should significantly improve their institutional capacity and existing EHS management system and also should enhance their Covid-19 related risk management systems and comprehensively address public safety and Occupational Health&Safety risks in line with good international practices and guidelines.

An Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Company to address the areas for improvement identified during the ESDD. Carrying out these necessary mitigation measures will enable the Company to comply with national regulations and the Bank's PRs. The ESAP covers development and implementation of the Environmental Management and Occupational Health & Safety Management Systems with specific focus on COVID-19 related risks and implementation of the mitigation measures, improvement of sanitary and hygienic conditions for the employees, OHS and fire safety trainings for new CNG equipment, development of road safety management system and disclosure of its environmental and social performance. Additional support for development of risk management system and ESAP implementation will be provided as part of the post-signing TCs for PIU and CDP.

The environmental and social performance of the project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary.

Technical Cooperation and Grant Financing

The following technical co-operation ("TC") assignments are envisaged as part of this Project:

TC1: Project Preparation

TC2: Advance Procurement Support

TC3: Development of a Green City Action Plan

TC4: Project Implementation Support

TC5: Corporate Development Programme

Company Contact Information

Nurlan Keneshovich Koichubakov
bpatpkg@mail.ru
+996312531814
4 Shabdan Batyr st., Bishkek, Kyrgyz Republic

PSD last updated

18 Nov 2020

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.

 

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