Purchase of 30 new buses, comprising 24 Euro VI buses and 6 battery electric buses and related charging infrastructure, which will be added to the existing bus fleet of Trafiku Urban (the "Client" or the "Company"), to expand its operations (the "Project"). The Project will enable the Company to increase the frequency of bus services and to add new routes across the Municipality of Pristina (the "City"). The 6 electric buses will be deployed on a pilot route with the aim to introduce electric bus technology for the first time in the country.
The Project's objective is to increase services and improve the reliability, sustainability, safety and efficiency of Pristina's public transport. The Project is expected to bring the following benefits:
- Extend and improve public transport services in the city of Pristina;
- Support a continued shift from private cars to public transport;
- Facilitate easy access for passengers, particularly those with limited movement, including the elderly and the disabled;
- Improve the reliability, safety and efficiency of public transport;
- Reduce air pollution emissions from public transport, improving local air quality; and
- Reduce GHG through the launch of a pilot electric bus route.
The introduction of an electric bus route is an important step towards developing a sustainable urban transport system. Fleet electrification strategies typically start with an initial limited number of vehicles allocated to specific bus routes for operational and demonstration purposes. This allows familiarisation with technology and maintenance and limits the risks of purchase of full fleets under rapid technological development. The same strategy is considered to be appropriate for Pristina, where the operator aims to introduce electric bus technology for the first time in the country by purchasing 6 electric vehicles to operate on a flagship circular route passing through Pristina city center. This pilot will be used to gain experience of the operation of public electric buses and will facilitate the continued transition of the fleet to electric buses in the future.
The introduction of electric buses and EURO VI buses will reduce GHG emissions by 76% compared to the baseline and will deliver a substantial reduction of air pollutant emissions, making the Project eligible for EBRD Green Cities and compatible with the Green Economy Transition Approach 2021-2025 (BDS20-082/F).
ETI score: 70
The Green Cities Framework II ("GrCF2") represents a strategic and multi-project approach seeking to help identify and address environmental challenges in selected large cities in our countries of operation. The primary goal is to achieve significant environmental improvements and to promote the Green transition quality within the relevant cities. In addition to the environmental objective, the GrCF2 also promotes sustainable cities through inclusive, resilient, well-governed and smart urban development. Depending on which area can generate the strongest and most relevant transition impact, either Well-governed, Inclusive, Resilient or Competitive will be pursued and presented as the secondary transition quality for each sub-Project under the framework. These transition objectives are supported by the development and implementation of a city-specific Green City Action Plan ("GCAP") aiming to identify environmental challenges, facilitate better coordination and buy-in among stakeholders and help to prioritise and develop the best ways to address the environmental challenges through targeted investments, services and policy instruments. The GCAP takes a comprehensive approach, including the consideration of gender equality in the City.
The Project builds on the achievements of the Bank's first project with the Company which introduced a Public Service Contract ("PSC") for the first time in Kosovo.
The Project will primarily promote the Green transition quality by improving the environmental impacts of the urban transport system in Pristina and will result in a reduction of GHG emissions by 76% compared to the baseline. This will be achieved through the introduction of electric buses in the City's central route for the first time in the country, expansion of the City's fleet with diesel EURO VI standard compliant buses, and ultimately through modal shift of users from existing high-polluting minibuses and cars to the new bus services, given that transport constitutes as one of the main polluters in the City.
The Project will also promote the Well-Governed transition quality by supporting sector reform of Pristina's public transport through a post-signing TC support provided as part of the Project. The TC will support the City with the restructuring of the bus network as per the recommendations from its Sustainable Urban Mobility Plan, including: (i) introduction of an integrated bus network and fare system (e.g. tariffs, timetable etc); (ii) an enhanced bus service contracting system; and (iii) a dedicated PSC monitoring unit to be established in the City.
The Project is also gender-additional as: i) it will include considerations to promote gender equality in public transportation services in a post-signing TC assignment, and ii) the Project will include a review of the Company's HR policies to promote equal opportunities as part of the Client's Environmental and Social Action Plan.
TRAFIKU URBAN PUBLIC TRANSPORT COMPANY
The client is Trafiku Urban, a public urban bus transport company 100% owned by the Municipality of Pristina.
EBRD Finance Summary
Total Project Cost
The Project is a repeat transaction with the Company however the project structure differs from the previous transaction by introducing a non-sovereign structure with a PSC and a direct engagement with the City to further city-level public transport sector reform efforts.
The Bank's Additionality sources are:
Financing Structure: EBRD offers a tenor, which is above the market average and is necessary to structure the project.
Risk Mitigation: EBRD's long-term relationship with a client provides comfort to the client to be willing to take on more risk and/or finance, enabling outcomes such as innovation or expansion into new markets (introduction of electric buses).
- Client seeks/makes use of EBRD expertise on corporate governance improvements, including for climate risk management and planning through the GCAP.
- Client seeks/makes use of EBRD expertise on higher environmental standards, above 'business as usual'
- Client seeks/makes use of EBRD expertise for the adoption of gender standards and equal opportunities action plans
Environmental and Social Summary
Categorised B (2019 Environmental and Social Policy ("ESP")). The Environmental and Social Due Diligence ("ESDD") was carried out by an independent consultant and included a site visit and the review of the Environmental and Social Action Plan ("ESAP") implementation status related to the first bus project with the Company. The environmental and social ("E&S") risks and impacts associated with the purchase of 30 additional buses (24 Euro VI buses and 6 electric buses) and related charging infrastructure were identified and will be managed by the implementation of a revised ESAP. E&S monitoring on the first transaction show overall a good progress on implementation of the initial ESAP. The initial ESAP has been revised to reflect ESDD findings and has been agreed with the Company.
The Company has some measures of environmental and social management in place and is committed to complying with national requirements. Refurbishment works on the bus depot (financed by the initial transaction) were completed in 2019, including installation of a bus washing facility. The water supplying this facility comes from two water wells for which the Company has obtained a Water Permit from Ministry of Environment. Two water meters were installed as per recommendations of the Water Permit, in order to control and report for the water quantity that is used. Wastewater effluents are discharged to a sewer via oil and grease separators. The site has a history of contamination, associated with the storage of fuel, heavy fuel oil (for heating) and waste oils. The ESAP requires the Company to develop a Monitoring and Reporting Plan (including effluent quality monitoring).
Within the compound of the Company, a new parking area will be designated to serve as a charging facility for new electric buses. The Company has finalised an Emergency Preparedness and Response Plan. The newly refurbished offices are equipped with smoke detectors, and fire extinguishers are placed in the facilities.
Human Resource Policies and Labour Conditions of the Company are compliant with national legislation and EBRD Performance Requirement 2 ("PR2"). Several improvements were observed since the last E&S site visit, including development of a formal workers Grievance Mechanism and a Health Safety and Social Policy. Due to the sector of activity, the ESAP requires the Company to conduct a driver training programme with specific provisions on Gender Based Violence and Harassment. Should the Company need to implement a collective dismissal (due to the proposed move to a ticketless operation in the longer term), they would have to prepare a redeployment plan, including appropriate training for current ticket collectors, as confirmed in the ESAP.
The existing Stakeholder Engagement Plan (SEP) has been updated in line with the GrCF2W2 - Pristina Urban Transport II Project. The Company has a hotline through which citizens and customers can request information or submit their grievances; the hotline phone number is printed on the bus ticket receipts and there is a complaint box at the depot entrance.
The Bank will monitor the Project's environmental and social performance and ESAP implementation by reviewing Annual Environmental and Social Reports (AESR).
Technical Cooperation and Grant Financing
a) TC 1: Technical Due Diligenceto assess thefeasibility of the Project, including for the introduction of 6 electric buses and related infrastructure and prepare the technical specification for both electric and diesel buses to be procured under the Project. The cost of the assignment is EUR 74,871 (Completed);
b) TC2: Environmental and Social Due Diligence. The cost of the assignment is EUR 39,709 (Completed).
c) TC3: Project Implementation Support to support the Company with the tender preparation and evaluation, contract negotiation and works supervision including pre-delivery inspection. The estimated cost of the assignment is EUR 200,000;
d) TC4: Support to the City for bus network restructuring and implementation, including participatory urban transport planning, new bus network introduction, related contracting and PSC monitoring. The estimated cost of the assignment is EUR 450,000.
Client contributions: The Client will be responsible for paying all VAT and other indirect taxes that are applied to the donor-funded post-signing TC assignments where they are the contracting party as a parallel cost sharing contribution to the Project (VAT is levied at 18 per cent in Kosovo). Lastly, the Client will also provide in-kind support in the form of office space, communication connections, etc., for the consultants to work, presumed to amount to 3 per cent of the total TC budget.
Company Contact Information
Arta Domi, CEO
+383 45 10 11 22
Tahir Zajmi n. 43, 10000 Pristina, Kosovo
PSD last updated
07 Dec 2022
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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 firstname.lastname@example.org. 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.
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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 email@example.com to get guidance and more information on IPAM and how to submit a request.