Project Description
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
Provision of working capital facility to Javno gradsko saobracajno preduzece Novi Sad (the "company"), an existing EBRD client, in line with the Bank's Vital Infrastructure Support Programme (Window 2).
Project Objectives
The objective of the project is to address working capital needs which arose due to Covid-19 crisis and to strengthen the company's overall financial resilience and sustainability.
Transition Impact
ETI score: 60
ETI: 60
The Transition Impact of this project is aligned with the Vital Infrastructure Support Programme under the Bank's Covid-19 Solidarity Package. The project contributes to the "Resilient" quality as it entails addressing current liquidity shortages of the company resulting from a sudden, significant change in economic activity due to a crisis event. The main purpose is to help the company with a stabilisation facility in a form of liquidity support to compensate for temporary revenue losses due to Covid-19 related issues.
Client Information
PUBLIC TRANSPORT COMPANY OF THE CITY OF NOVI SAD
Javno gradsko saobracajno preduzece Novi Sad, public transport company founded by the City of Novi Sad (the "city" or "Novi Sad").
EBRD Finance Summary
EUR 7,000,000.00
Up to EUR 7 million senior loan to the company to be split in two tranches: a committed tranche of up to EUR 4 million and an uncommitted tranche of up to EUR 3 million.
Total Project Cost
EUR 7,000,000.00
EUR 7,000,000
Additionality
Financing Structure: Crisis response - EBRD financing is provided under the extraordinary circumstances of the Covid-19 crisis and effectively bridges a liquidity gap due to adverse market conditions (coronavirus pandemic).
The Bank's ability to respond quickly to immediate needs is also a key additionality element.
Environmental and Social Summary
Categorised B (2019 ESP). The proposed use of proceeds (working capital facility) is not associated with any new environmental or social risks or impacts, since the Bank's loan will not finance capital expenditure investments. The Company is an existing client and a detailed Environmental and Social Due Diligence (ESDD) was conducted by an independent consultant in 2019. This ESDD concluded that the Company has the institutional capacity to operate in compliance with the Bank's PRs and with national legislation, and an Environmental and Social Action Plan (ESAP) and Stakeholder Engagement Plan were agreed. Limited additional ESDD for this project has been undertaken in-house, in line with the Bank's ESDD approach to COVID-19. The Company has addressed public safety and occupational health and safety risks linked to the COVID-19 response in line with Government guidelines. The Company has reportedly implemented health and safety measures for employees and passengers, such as: disinfection of all facilities; social distancing warning signs (number of people in the buses and seating order); and requiring the wearing of protective equipment (gloves and facial masks) for employees, drivers and passengers; as well as remote working wherever possible. Communication with passengers is well managed via various channels and all bus stations and buses have guidelines for passenger behaviour. The Company does not currently plan any labour restructuring or redundancies.
This solidarity loan does not require additional monitoring or reporting above that already in place, nor are additional ESAP items required. The Client is required to continue to ensure that the new project complies with the Performance Requirements. The EBRD will continue to monitor the Company's environmental and social performance via reporting for the previous transaction.
Technical Cooperation and Grant Financing
n/a
Company Contact Information
Milovan Amidzic
gspns@gspns.rs
www.gspns.co.rs
Futoski put 46, 21000 Novi Sad, Serbia
Implementation summary
PSD last updated
01 Jun 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.
