GrCF2 W2 - Tbilisi Municipal Services

Location:

Georgia

Project number:

52577

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

22 Jun 2021

Status:

Approved

PSD disclosed:

02 Feb 2021

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The sovereign loan of up to EUR 9.6 million will be used to finance the acquisition of vehicles, machinery and equipment, as well as digital route optimisation and truck pool management systems, for the provision of municipal services, namely solid waste management ("SWM"),street lighting ("SL"), street cleaning and drainage in Tbilisi for the benefit of Tbilservice Group Ltd (the "Company").

Project Objectives

The proposed investment will address a priority environmental challenge of modernisation of waste management and  street lighting equipment in the city of Tbilisi as identified under its Green City Action Plan ("GCAP") and approved by Tbilisi City Municipality (the "City") in September 2017.

The Project addresses Tbilisi's priority environmental challenges of SWM and SL equipment modernisation as detailed in the Tbilisi GCAP.

Transition Impact

ETI score: 70

The Project is part of Green Cities 2 ("GrCF2") and a follow-on investment to the Tbilisi GCAP.

GrCF2's primary goal is to achieve significant environmental improvements and promote the Green transition quality within the relevant cities. GrCF2 also aims to build necessary capacity and facilitate better coordination and buy-in among various stakeholders in order to improve the governance, operational efficiency and financial sustainability of the targeted investments and initiatives. Under GrCF2, the EBRD will put further emphasis on implementation of GCAPs, with at least half of all sub-investments expected to be follow-on transactions addressing critical environmental challenges identified by the GCAPs. The Bank will also seek to introduce more robust policy advice on the back of lessons learned, targeted studies and technical assistance. The overall transition impact will stem from the Green and the Well-Governed qualities.

The Project will help to promote the Green transition objectives by addressing the environmental challenges in solid waste management and street lighting sectors. The Well-Governed objectives will focus on regulatory/institutional improvements and operational and financial sustainability through the development of Corporate Development Programme ("CDP") and introduction of Public Service Contract ("PSC") between the City and the Company.

Client Information

GEORGIA SOVEREIGN

  • Borrower: Georgia, represented by the Ministry of Finance.
  • Beneficiary: Tbilisi City Municipality
  • Implementing Agency: Tbilservice Group Ltd. (fully owned by Tbilisi City), responsible for solid waste management, street cleaning, street lighting, municipal parks and underpasses in Tbilisi

EBRD Finance Summary

EUR 9,600,000.00

Total Project Cost

EUR 9,600,000.00

The Project will also benefit from the technical cooperation assignments to support project preparation and implementation.

Additionality

EBRD is uniquely positioned to assist the City in addressing environmental challenges through the implementation of the GCAP.

EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, which are necessary to structure the Project. EBRD provides expertise, innovation, knowledge and/or capabilities that are material to the timely realisation of the Project's objectives, including support to strengthen the capacity of the Company. EBRD supports the Company to achieve higher standards by relying on the best international procurement standards and higher environmental and social standards.

Environmental and Social Summary

Categorised B (ESP 2019) and low-medium risk. Environmental and social impacts associated with the purchase and operation of equipment for the provision of SWM and SL services will be mainly beneficial. Any potential adverse environmental and social impacts will be site-specific and manageable through the implementation of good management practices and the agreed updated Environmental and Social Action Plan (ESAP).

The Environmental and Social Due Diligence (ESDD) has been undertaken by an independent consultant and included analysis of the existing Environmental and Social practices and performance, status of the existing ESAP implementation, as well as assessment of the impacts associated with the Project. ESDD has established that the Company, with the support of PIU consultant, has made good progress in the implementation of the Environmental and Social Management Systems and corrective actions, and continues working on addressing the outstanding items. The existing ESAP has been updated to include new items pertaining to the Project, such as improvement of working conditions by monitoring of social performance of nonemployee workers, improvement of the equal opportunities for women and vulnerable groups by elaboration of the Equal Opportunities Action Plan (EOAP), implementation of end-of-live disposal and reuse of the vehicles, spare parts and hazardous substances. The Bank will be supporting the Company through a number of TCs that will encompass, inter alia, CDP, which will assist the company in implementation of the ESAP.

Technical Cooperation and Grant Financing

A comprehensive TC package is envisaged to be deployed in support of the Project. The following TC assignments are envisaged:

TC 1. Technical, Economic, Environmental and Social Due Diligence. The estimated cost of the assignment is up to EUR 75,000, financed by the EBRD Shareholder Special Fund (the "SSF").

TC 2. Procurement Support. The estimated cost of the assignment is up to EUR 75,000, proposed to be financed by an international donor or the SSF.

TC 3. Corporate Development and Stakeholder Participation Programmes. The estimated cost of this assignment is up to EUR 400,000, proposed to be financed by an international donor or the SSF.

Company Contact Information

David Bodokia
dbodokia@gmail.com
tbsg.ge
7 Kakheti Highway, 0182, Tbilisi, Georgia

PSD last updated

15 Jun 2021

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.

 

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