Project Description
GrCF2 W1-Chisinau River Bic Rehabilitation and Flood Protection Project (the "Project") will be a follow-on investment with the City under the Green Cities Framework 2 -Window 1 ("GrCF2W1"), addressing the priority environmental challenges of climate adaptation and water quality, as well as supporting the implementation of the Green City Action Plan ("GCAP") strategic objective of climate resilient blue-green infrastructure.
The proceeds of the Bank's investment and grant funds will be used to implement the first phase of interventions designed to mitigate the risk of the River Bic (the "River") flooding; better safeguarding people, properties and commerce from the negative impact of severe flooding which is expected to become more harmful through the predicted impact of climate change, specifically with more intense, short duration rainfall events.
The Project will finance a blend of solutions that help to control the attenuation, release and conveyance of rain and river water, ranging from i) restoring current storm drains, ii) piloting sustainable urban drainage solutions, iii) installation of flap valves, to iv) re-grading of river sections to increase capacity.
Project Objectives
The Project aims to regenerate the River Bic to become an attractive asset for the city and the region. The Project and its corresponding urban interventions have the potential to support the transformative ambitions of the City, not only preventing further degradation to the River but bringing it back to life and restoring the natural environment.
It is expected that an improved quality of open-air life in the reaches of the River would foster sociability and stimulate the city's economic revival, with the aim to enhance the city centre's power of attraction.
The Project will reduce the harm and costs associated with increased flooding risk to around 2,100 people and restore water quality and appeal of the River, providing alternatives for recreation, amenity and sustainable mobility to around 100,000 people who live, work and visit the city. This will have positive impacts for health and wellbeing.
The Project would be the Bank's first to formally implement a form of Nature Based Solution ("NBS"), the Sustainable Urban Drainage, as part of sustainable and climate resilient infrastructure.
Transition Impact
ETI score: 70
The Project will primarily help to promote the Green transition quality by financing a set of integrated flood water management measures in Chisinau along the River, including the use of NBS. It addresses the priority environmental challenges of climate adaptation and water quality as identified by the City in the GCAP. Moreover, the Project will contribute to implementing the GCAP action (2.1.2) for climate resilient blue-green infrastructure in the city. The Project has a GET attribution of 100 per cent and will result in a Climate Resilience Benefit Ratio of 166 per cent, thus, demonstrating the benefit of this investment.
The Project will also support the Resilient objective through implementing priority actions aimed at enhancing urban resilience including better risk assessment and mitigation, warning systems or emergency response planning for flooding. This will serve as an economic development catalyst enabling a regenerated area for business and investment, new land uses and value uplift.
Client Information
CITY OF CHISINAU
The borrower will be the City of Chisinau (the "City"), a municipality located in Moldova. Chisinau, the capital city of Moldova, has a population of 800,000, representing nearly one-third of the total population of the country and covers an area of 571.6 square kilometres. The city is the most economically prosperous locality in Moldova and serves as the financial and business capital of the country. Its GDP comprises about 63 per cent of the national economy.
GrCF2 W1-Chisinau River Bic Rehabilitation and Flood Protection Project will be implemented by the City of Chisinau, with the participation of Exdrupo, a municipal company responsible for the maintenance and operation of the storm water drainage system.
EBRD Finance Summary
EUR 8,000,000.00
The facility will consist of a sub-sovereign loan to the City of up to EUR 8.0 million to increase the resilience of the city to river flooding, strengthen the capacity of the urban drainage system, and prepare the system to deal with increased climate extremes. It will therefore reduce the impact of climate change on water quality and the aquatic environment.
Total Project Cost
EUR 20,000,000.00
The EBRD (the "Bank") loan will be complemented by a EUR 8.0 million loan from the European Investment Bank ("EIB") and an investment grant of up to EUR 4.0 million from the Green Climate Fund ("GCF").
Additionality
The additionality sources for the Project are:
-Financing structure;
-Risk mitigation;
-Standard-setting: helping Projects and clients achieve higher standards;
-Knowledge, innovation and capacity building.
Environmental and Social Summary
The Project has been Categorised B in line with EBRD's Environmental and Social Policy (2019); risks and impacts associated with this Project have been identified and mitigated and the significant Project benefits and impact have been confirmed. As part of the Project preparation, the Bank worked with the City to design the Priority Investment Programme ("PIP") developed from a long-term investment strategy and to evaluate its benefits, including the assessment of environmental and social risks, impacts and benefits. The Project includes measures to generate a comprehensive rehabilitation of the River in the area of the city, with specific reference to the GCAP, to reduce the overall risk of flooding and to provide improvements to the blue-green infrastructure. An Environmental and Social Assessment ("ESA") of the Project against the Bank's 2019 EBRD Environmental and Social Policy ("ESP") and associated Performance Requirements ("PRs") was undertaken, to identify its environmental and social risks, impacts and benefits and to inform the technical solution decision making.
The main objective of the Project is to reduce flood risk, revitalise the surface water systems linked to the River, and upgrade the blue-green corridor along the River. The area that will benefit from flood protection includes residential areas, social infrastructure, green spaces, markets, industrial areas, wastewater treatment plant, parking, fuel stations, rail line, and other city infrastructure and facilities. During construction, the required works will include a programme of rehabilitation and civil works. The main negative social and environmental impacts of the Project during implementation will be temporary and short-term associated with construction activities. In addition, there will be labour impacts, both positive and negative, related to employment opportunities, training and occupational health and safety.
Technical Cooperation and Grant Financing
Pre-signing:
- Feasibility Study to conduct technical, economic, environmental and social due diligence. The cost of the assignment is EUR 224,065, financed by the GCF.
Post-signing:
- Project Implementation Support to the City for (i) preparation of tender documents; (ii) assistance with tendering procedures including tender evaluation and subsequent contract signing; (iii) supervision of works and assistance with the supply contracts administration. The estimated cost of the assignment is up to EUR 700,000, proposed to be financed by an international donor and/or the EBRD Shareholder Special Fund ("SSF").
- Corporate Development Programme to improve governance of Exdrupo through: i) developing planned and reactive maintenance task identification; ii) improved systems intelligence through data validation/collection, improved records management; and iii) identifying the future financial sustainability of Exdrupo. The estimated cost of the assignment is up to EUR 250,000, proposed to be financed by an international donor and/or the SSF.
- Gender and Economic Inclusion to support the City in integrating universal access principles and best practices in future urban municipal infrastructure projects. The estimated cost of the assignment is up to EUR 70,000, proposed to be financed by the GCF.
Company Contact Information
Ion Ceban
primaria@pmc.md
+373 22 22 10 02
+373 22 22 12 89
www.chisinau.md
83, Stefan cel Mare si Sfint avenue
Chisinau, MD 2012
Moldova
PSD last updated
18 Nov 2022
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.
