Project Description
The provision of debt financing of up to €5 million to the city of Nis to finance the implementation of energy efficiency (EE) measures in up to 40 residential multi-store buildings connected to the district heating network.
Project Objectives
Contribution to the implementation of EE measures in up to 40 residential multi-store buildings, including insulation measures and introduction of thermostatic valves and heat allocators in order to upscale the results of the, already implemented, consumption-based billing system. As residential buildings account for a significant portion of the heating demand, the project will address the key contributor to the emissions and energy consumption in the city.
Transition Impact
ETI score: 60
The Project contributes to the "green" transition impact quality through environmental benefits arising from the reduction of energy consumption in residential buildings. Implementation of high quality energy efficiency measures in buildings, including demand side energy savings measures, is expected to have a strong demonstration effect, especially considering that the current level of penetration of EE technologies in the building sector is very low. It is expected that the reduction of energy consumption and increase in residential energy efficiency can significantly improve the performance of the sector. The targeted level of energy savings will be determined and confirmed during due dilligence.
Client Information
CITY OF NIS
The Client is the City of Nis, the third largest city in Serbia, with a population of 261,000 inhabitants. The Project will be implemented by the City's District Heating Company Toplana Nis, the sole producer and distributor of heating energy in the city.
EBRD Finance Summary
EUR 5,000,000.00
Up to €5 million
Total Project Cost
EUR 5,000,000.00
Up to EUR 5 million.
Additionality
Financing structure: the EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period that is rarely available in the market, restricted foreign currency financing etc. Such financing is necessary to structure the project.
Standard-setting: helping projects and clients achieve higher standards. Client seeks/makes use of the EBRD expertise on best international procurement standards.
Environmental and Social Summary
Categorised B 2019 ESP and Low-Medium risk. Key Environmental and Social ("E&S") risks and impacts associated with EE measures in residential buildings include: worker and community health and safety during construction works (including potential presence of asbestos), life and fire safety issues, stakeholder engagement and access to public buildings during the works. E&S due diligence will be undertaken by an independent consultant and will include an assessment of the Company's capacity, management systems and procedures, and a site visit to some buildings.
Technical Cooperation and Grant Financing
Pre-Signing:
- TC1: Energy Audit and solar-thermal pre-feasibility study.
- TC2: Environmental and social due diligence including preparation of all environmental and social aspects of project implementation.
- TC3: Advanced procurement support, to assist the Company with the preparation of tender documents and handling procurement process for works and supervision consultant.
Post Signing:
- TC4: Project supervision of works execution, to assist the Company with the monitoring of the use of proceeds, implementation and supervision support.
Company Contact Information
Bojan Gajic
Energetski.menadzer@gu.ni.rs; gbojan@gu.ni.rs
+381 64 833 06 53
www.ni.rs
Vozdova 24
18000 Nis
Serbia
PSD last updated
13 Aug 2020
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
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General enquiries
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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 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.
