Provision of a sovereign loan for the acquisition of up to 15 new trams (the "project") for the Sarajevo Canton (the "Canton"). The project is part of the EBRD's Green Cities Framework 2 Window 2 (the"framework") and was identified as a priority project under the Canton's Green City Action Plan ("GCAP"). Parallel financiers might co-finance the project.
The project aims to alleviate traffic congestion and minimise transport-based emissions and environmental pollution. Increasing the efficiency of tram operations will reduce the tram fleet's electricity consumption resulting, together with an effect from modality shift, in a reduction of tCO2e (tonnes of carbon dioxide equivalent) of Green House Gases ("GHG") emissions.
The project is also a follow-on investment under the Sarajevo GCAP, which identified local air quality, lack of public transport infrastructure and current transport policies as priority challenges to address through investments and policy actions.
ETI score: 70
- The project's transition impact derives from (i) energy and CO2 savings, and (i) the implementation of a GCAP developed for the Canton.
BOSNIA AND HERZEGOVINA SOVEREIGN
The borrower is Bosnia and Herzegovina. The loan proceeds will be on-lent to the Sarajevo Canton through the Federation of Bosnia and Herzegovina.
EBRD Finance Summary
A sovereign loan of up to EUR 10 million, to be on-lent to the Canton.
Total Project Cost
The total estimated project cost is EUR 35.3 million including capital investments and technical cooperation (consultancy services).
The additionality sources are: (i) the financing structure; (ii) the policy, sector, institutional or regulatory change; and (iii) standard-setting: helping projects and clients achieve higher standards.
Environmental and Social Summary
Categorised B (2019 ESP). The acquisition of up to five new trams to be operated by the municipal public transport operator KJKP Gradski saobraiaj" d.o.o. Sarajevo ("GRAS"), is expected to improve the reliability of public transport and thus contribute in addressing Sarajevo's severe air quality issue. Environmental and social due diligence ("ESDD") was carried out by independent consultants and focused on GRAS' existing management systems, current and past operational performance, and existing operations and facilities and potential environmental and social ("E&S") issues associated with the Project.
ESDD included: (i) a site visit to the GRAS facilities; (ii) interviews with relevant personnel; (iii) an E&S assessment of the Project; and (iv) audit of the GRAS's operations against Performance Requirements ("PRs"). An Environmental and Social Action Plan ("ESAP") has been developed and agreed with the Canton, to ensure the Project is structured to meet the Bank's PRs. A Non-Technical Summary ("NTS") and Stakeholder Engagement Plan ("SEP") have also been prepared and will be disclosed on the Canton's website.
GRAS does not currently have a corporate Environmental and Social ("E&S") and occupational health and safety ("OHS") policy, formal E&S and OHS management system nor management plans and procedure documents. The ESAP includes a specific set of actions aimed at developing a clear and usable set of internal policies and guidance to cover identification, appraisal and management of key E&S and OHS risks including pollution prevention and control at the maintenance depot, emergency preparedness and response including community safety, contractor oversight and road traffic safety.
GRAS operates in line with national Labour Law. Approximately 80 per cent of the employees are members of the trade union and there is an employee grievance mechanism in place. The average number of employees per operable vehicle is higher than the region average and over 50 per cent of the employees are nearing retirement. Over the past few years, GRAS has been preparing annual retrenchment plans, all adopted by the Government of Sarajevo Canton, aimed at reducing the number of employees through early retirement and to secure the payment of outstanding social obligations in line with national law. The cantonal government will continue with the Restructuring and Retrenchment Programme that will need to be structured to meet PR 2 requirements and this has been specified in the ESAP.
The Project is expected to contribute to energy savings of 30 per cent and reduce local air pollution through reduction of NOx by 363 kg/year and PM10 by 62 kg/year as well as bring CO2 savings of 31 per cent. No land acquisition or economic displacement is expected. Disruptions in tram schedules during the Project's implementation are very unlikely and GRAS has measures planned to mitigate any potential disruptions with alternative transport options (buses and minibuses) and communications plan.
GRAS carries out stakeholder engagement on a regular basis and has a public grievance mechanism in place. A project-specific grievance mechanism has been developed as part of the SEP. The Bank will evaluate the Project's environmental and social performance in accordance with the Bank's PRs through review of reports and monitoring visits as required.
Technical Cooperation and Grant Financing
TC1: Feasibility Study: technical, economic and environmental due diligence for three projects, financed by IPPF (completed under GrCFW2 Sarajevo Public Transport Project Part 2, DTM 51294)
TC2: Advanced Procurement & Project Implementation Support: procurement support, financed by the EBRD Shareholder Special Fund ("SSF").
TC3: PSC Preparation and Tariff Reform: technical assistance to develop a new ticketing system and a new tariff methodology, and is proposed to be financed by an international donor or the SSF.
Company Contact Information
71 000 Sarajevo, Reisa Dzemaludina Causevica 1
PSD last updated
31 Jul 2020
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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 email@example.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 firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.