A loan of up to EUR 20.3 million (or RON equivalent) to the City of Timisoara to support the City's priority public transport infrastructure alongside EU co-financing under the relevant EU Regional Operational Programme 2014-2020. The loan will support: (i) the renewal of the City's tram fleet,(ii) the rehabilitation of the tram line, (iii) the update of the City's sustainable urban mobility plan, (iv) the improvement of public transport services in Timisoara, and (v) the preparation of a Green City Action Plan.
The main purpose of the Project is to improve the e-mobility in the City and its metropolitan area and reduce pollution caused by traffic congestion, focusing on the modernisation of its public transport system.
To pursue the transition towards a greener future across all urban sectors, the City also takes a strategic approach by joining EBRD Green Cities. With this project serving as the City's "trigger" investment under the programme, EBRD will support the City to develop a Green City Action Plan ('GCAP').
ETI score: 70
The Project is part of EBRD's Green Cities Framework 2 ("GrCF2"). The GrCF2's primary goal is to achieve significant environmental improvements and promote the Green transition quality in the targeted cities. The GrCF2 also aims to build necessary capacity and facilitate better coordination between and buy-in from various stakeholders in the relevant cities in order to improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives.
This Project will primarily promote the Green transition quality by supporting electric transport development, resulting in reduction of GHG emissions by at least 20 per cent. In addition, the Project will also trigger development of the GCAP for the City of Timisoara that will benchmark the city's environmental performance, identify the priority environmental challenges and will define the measures, investments and policy actions, that will address these challenges.
The Project will also support the Resilient objective through strengthening the City's public transport network and supporting development of strategic plans for sustainable urban mobility and transport restructuring.
CITY OF TIMISOARA
B-dul C.D. Loga, nr 1, cod 300030 Timisoara, Jud Timisoara
EBRD Finance Summary
Total Project Cost
The Bank is additional because of its:
- Financing structure;
- Knowledge, innovation and capacity building;
- Standard-setting: helping projects and clients achieve higher standards.
Environmental and Social Summary
The proposed project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.
The environmental and social due diligence for the project, which is ongoing, includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements.
An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.
Technical Cooperation and Grant Financing
Pre-signing TC: EUR 75 thousand due diligence for technical and environmental review
Post-signing TC: EUR 350,000 for GCAP preparation
PSD last updated
05 Oct 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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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.