Serbian Solid Waste Programme

Location:

Serbia

Project number:

52642

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

A

Approval date:

24 Nov 2021

Status:

Passed Concept Review, Pending Final Review

PSD disclosed:

06 Aug 2021

Project Description

Provision of a sovereign loan of up to EUR 50m to the Republic of Serbia (the "borrower", the "client"). The loan proceeds will be used to finance: 1) critical improvements in solid waste management systems across a number of secondary Serbian municipalities, (2) introduction of a multi-regional primary sorting system within 4 existing solid waste regions, and 3) project supervision costs (the "project").The project will consist of 8 sub-projects which will be split into two phases based on project readiness. Phase 1 will entail the development of 4 new regional waste management centres ("RWMC"), while Phase 2 will comprise the construction of 3 new RWMCs and a multi-regional primary sorting system in 4 existing RWMCs. The total project cost of EUR 100m will be co-financed on a 50:50 basis with the French Development Agency ("AFD").

Project Objectives

The project aims to support the development of integrated and modern solid waste management systems compliant with EU standards via (i) the establishment of RWMCs articulated around a regional centre covering several municipalities (particularly for the regional sanitary landfill); (ii) the establishment of primary sorting/recycling systems (material recovery facilities); and (iii) the treatment and recovery of biodegradable waste. Other investments relating to the infrastructure necessary for collection (waste bins/containers, vehicles and transfer stations) will also be included in the scope of the project. 

Transition Impact

ETI score: 80

Primary quality: Green.

The project will promote resource efficiency by introducing sustainable waste management practices through the construction of sanitary landfills designed to EU standards, and the implementation of material recovery facilities, composting plants and a primary sorting system. The project is expected to contribute to savings in Greenhouse Gas ("GHG") emissions and result in significant health and environmental benefits.

 

Client Information

SERBIA SOVEREIGN

The borrower is the Republic of Serbia represented by the Ministry of Finance ("MoF"). The project will be implemented by the Ministry of Environmental Protection ("MoEP"). 

EBRD Finance Summary

EUR 50,000,000.00

Up to EUR 50m.

Total Project Cost

EUR 100,000,000.00

The total project cost of EUR 100m will be co-financed on 50:50 basis with the AFD.

Additionality

Financing structure: The EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. 

Standard setting: the client seeks/makes use of the EBRD's expertise on best international procurement standards and higher environmental standards above "business as usual". 

Knowledge inovation and capacity building: The EBRD provides expertise, innovation, and/or capabilities that are material to the timely realisation of the project's objectives, including support to strengthen the capacity of the client

Environmental and Social Summary

Categorised A, 2019 ESP and High-Medium risk. This Project involves the financing of a number of separate solid waste management sites, one of which, Kalenic, is categorised A due to its size. This sub-project requires a gap analysis of the national EIA, preparation of any required supplementary assessments and disclosure of ESIA for 120 days. The EIA, NTS, SEP, ESAP and LARF have been released for comment locally and at https://www.ebrd.com/esia.html 

The other sub-projects financed by this loan are categorised B and the scope of the required environmental and social appraisal will be defined after the AFD-funded scoping study. Environmental and social due diligence will be undertaken by an independent consultant. The overall Project is High-Medium risk as it involves greenfield developments with the potential for involuntary resettlement and has a number of different operators. Key risks and impacts to consider include the need to ensure that the sub-projects are aligned with the new National Waste Strategy of Serbia and designed in accordance with EU standards and applicable BAT, that existing dump sites are properly closed and any livelihood restoration issues are addressed, and that impacts on local communities are minimised. The introduction of improved waste management practices and the upgrading of landfill provision is expected to result in significant environmental benefits. TC support will be provided for capacity building and ESAP implementation support.

Technical Cooperation and Grant Financing

Pre-Signing:

  • TC1: Technical and Environmental & Social due diligence for Phase 1 (excluding Kalenic - Category A sub-project) and Phase 2 sub-projects, including a technical and economic review of proposed works or designs and preparation of all environmental and social aspects of project implementation. 
  • TC2: Technical and Environmental & Social due diligence for sub-project Kalenic (Category A), including a technical and economic review of proposed works or designs and preparation of all environmental and social aspects of project implementation. 

Post-Signing:

  • TC3: Project PIU support, to assist the PIU set at the MoEP level with the preparation of tender documentation, tendering process, monitoring of the use of proceeds, and implementation support.  

Following detailed due diligence, detailed assessment of TC needs will be available and additional Post-Signing TCs may be included at a later stage. 

Company Contact Information

Filip Abramovic
Filip.Abramovic@ekologija.gov.rs
011/31-32-572
www.ekologija.gov.rs
Omladinskih brigada 1 - Novi Beograd

Implementation summary


PSD last updated

06 Aug 2021

Understanding Transition

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 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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