GrCF2: Skopje Bus Rapid Transit Project

Location:

North Macedonia

Project number:

51752

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

16 Sep 2020

Status:

Passed Final Review, Pending Approval

PSD disclosed:

16 Apr 2020

Project Description

Provision of a sovereign loan of up to EUR 70 million ("the loan") to the Republic of North Macedonia for on-granting to the city of Skopje. The loan will finance the construction of a Bus Rapid Transit ("BRT") corridor on two dedicated lanes, the acquisition of a new tram-bus fleet and the construction of a new depot (the "project") in Skopje. The project will be implemented in two phases and comprises of two tranches: Tranche 1 of up to EUR 40 million to finance BRT Line 1 (east-west) to be committed at signing, and Tranche 2 of up to EUR 30 million to finance BRT Line 2 (north-south) to be committed upon completion of separate due diligence.

The loan will be extended to the Republic of North Macedonia and on-granted to the city of Skopje, which will be the implementing agency.

The project is envisaged as part of the EBRD Green Cities Framework 2 ("GrCF2"). The facility is designed to serve as a sector-wide catalyst for addressing environmental challenges at municipal level.

Project Objectives

The main purpose of the project is to substantially improve the level of public transport service and help reduce air pollution in Skopje, currently one of the most polluted cities in Europe. The BRT is expected to play a key role in the improved system through the introduction of dedicated bus corridors on the main city arteries with related improvements in frequency, capacity and speed of the urban transport system in general.

Transition Impact

ETI score: 70

The project contributes to the "Green" Transition Impact quality by prioritising public transport in dedicated lanes operated by low-carbon emissions tram-buses which will significantly contribute to improved public service and local air quality.

The project will also features the "Well-Governed" Transition Impact quality by helping improve the governance of the urban transport sector in Skopje by promoting better planning and regulatory capacity for green urban transportation and strengthening financial sustainability of the municipal transport company.

Client Information

NORTH MACEDONIA SOVEREIGN

EBRD Finance Summary

EUR 70,000,000.00

Total Project Cost

EUR 70,000,000.00

Environmental and Social Summary

Categorised B under the 2014 Environmental and Social Policy. The key environmental and social impacts/risks to consider include: land acquisition, public safety during construction and operation and confirmation of the anticipated environmental and climate benefits. The use of hybrid CNG/electric engine technology will contribute to improving air quality in Skopje. Environmental and Social (E&S) due diligence is being undertaken by a consultant and includes an appraisal of the project, an audit of the operator's management systems and development of a stakeholder engagement plan and ESAP.

Technical Cooperation and Grant Financing

Technical Cooperation for this operation will be provided to assist with: (i) technical and environmental due diligence study for Line 1, (ii) advanced procurement support for Line 1, (iii) assistance with project preparation and implementation for Line 1 and Line 2, (iv) operational support to City and (v) feasibility study for Line 2.

Company Contact Information

Lovren Marki&
lovrenm@skopje.gov.mk
+389 (0)2 32 97 235
City of Skopje blvd. Ilinden 82, 1000 Skopje, Republic of North Macedonia

Implementation summary


PSD last updated

16 Apr 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.

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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