RF: Lviv Liquidity Facility

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A senior unsecured loan of up to EUR 10 million committed (Tranche 1) and EUR 12 million uncommitted (Tranche 2) financing to provide emergency liquidity support to the City of Lviv (the "City") and key municipal utilities/operators - existing clients of the Bank ("Recipients") in order to mitigate the effect of the COVID-19 crisis (the "Project" or the "Facility").

The Recipients of the working capital support from the City are:

- Municipal Enterprise "Lvivelectrotrans", existing client under the Ukraine Public Transport Framework, Lviv Trolleybus

- Communal Enterprise "Zelene Misto", existing client under the Green Cities Framework, Lviv Solid Waste

- Communal Enterprise "Lvivavtodor", existing client under the Ukraine Public Transport Framework: Lviv AFC

- Communal Enterprise "Lvivvodokanal", existing client under Lviv Wastewater Biogas

- Communal Enteprise "Lvivteploenergo", existing client under Lviv District Heating

Project ID 52829

Status Complete

Location

Ukraine

Business Sector

Municipal Infrastructure

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Roman Staretskyy
staretskyy.roman@lvivcity.gov.ua
+38 067 310 54 40
https://city-adm.lviv.ua/
Rynok Square, 1, Lviv, Lviv Oblast, Ukraine, 79000

Project ID 52829

Status Complete

Location

Ukraine

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

11 May 2021

Disclosure date

12 May 2021

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

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."

RF: Lviv Liquidity Facility (PDF, 0.43MB)

Project description

The Recipients of the working capital support from the City are:

- Municipal Enterprise "Lvivelectrotrans", existing client under the Ukraine Public Transport Framework, Lviv Trolleybus

- Communal Enterprise "Zelene Misto", existing client under the Green Cities Framework, Lviv Solid Waste

- Communal Enterprise "Lvivavtodor", existing client under the Ukraine Public Transport Framework: Lviv AFC

- Communal Enterprise "Lvivvodokanal", existing client under Lviv Wastewater Biogas

- Communal Enteprise "Lvivteploenergo", existing client under Lviv District Heating

Project objectives

The proceeds of the Bank's investment will be used for liquidity support to the city to provide liquidity and working capital support to key municipal companies - existing clients of the Bank (Recipients) - to compensate for temporary revenue losses due to COVID-19 crisis and support the vital municipal infrastructure providers with the day-to-day running costs (payroll, etc.), operating and maintenance costs, servicing the debt under existing projects with the EBRD (if required).

Transition impact

ETI Score:60

proposed liquidity facility at the Lviv City level would support the transition impact across five municipal transactions still under implementation, namely:

- UPTF: Lviv Trolleybus, Portfolio Transition Impact (PTI) 60, Competitive, Well-governed

- GrCF: Lviv Solid Waste, PTI 80, Green, Well-governed

- UPTF: Lviv AFC, PTI 60, Competitive, Well-governed

- Lviv Wastewater Biogas, PTI 45, Competitive, Green

- Lviv District Heating, PTI 100, Competitive, Well-Governed

Client information

CITY OF LVIV

The City of Lviv is an existing client of the Bank as the guarantor under eight municipal transactions with five Lviv municipal companies (Lvivelectrotrans, Lvivavtodor, Lvivvodokanal, Lvivteploenergo and Zelene Misto).

EBRD Finance Summary

EUR 22,000,000.00

A senior unsecured loan of up to EUR 10 million committed (Tranche 1) and EUR 12 million uncommitted (Tranche 2) financing.

Due to its nature as a COVID-response the project is a pilot one to be supported by the first-loss guarantee under the EU European Fund for Sustainable Development (EFSD) Municipal, Industrial and Infrastructure Resilience Program, Component 1.

The uncommitted Tranche 2 of up to EUR 12 million could be committed at the sole discretion of the Bank if required by the city, subject to COVID-19 developments and the effect on the City financial and operational performance and liquidity needs of the recipients.

Total project cost

EUR 22,000,000.00

Additionality

Additionality

COVID-19 crisis response: EBRD financing effectively bridges a liquidity gap due to adverse market conditions, e.g. the COVID-19 crisis. Moreover, the project envisions additional gender-sensitive benchmarks, which will be monitored throughout the project's life cycle.

Environmental & Social Summary

Categorised B (2019 ESP). The provision of short-term working capital to the existing clients is not associated with any new environmental or social (E&S) risks or impacts. Environmental and Social Due Diligence (ESDD) has been undertaken by the EBRD's Environment & Sustainability Department (ESD) in line with the ESD COVID-19 response and included a review of ESDD questionnaires, annual E&S reports provided by the clients to the Bank and publicly available information. The ESDD confirmed that the recipients continue to be in compliance with national law and relevant EBRD Performance Requirements (PR), are are on track in with implementing their existing Environmental and Social Action Plans (ESAPs), have maintained their institutional capacity for E&S risk management and are properly addressing occupational, health and safety risks linked to the COVID-19 response. Currently the clients do not plan any labour restructuring or redundancies within the next two years. Should this change the recipients will need to prepare and submit to the EBRD a Retrenchment Plan in line with PR 2. The Bank is in the process of agreeing updated ESAPs, which will address the issues identified in the ESDD and associated with COVID-19. This includes development of response plans related to labour management and stakeholder engagement to address COVID-19 related impacts and gender specific activities. The clients are required to continue to ensure that the new project complies with the PRs as well as submit annual E&S reports to the Bank.

Technical Cooperation and Grant Financing

The project is supported by a first-loss guarantee under the EFSD Municipal, Industrial and Infrastructure Resilience Program (MIIR) under Component I Crisis Response for the Municipal and Environmental Infrastructure sector, helping to respond to the needs of municipal borrowers negatively affected by the Covid-19 pandemic.

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.

Company Contact Information

Roman Staretskyy
staretskyy.roman@lvivcity.gov.ua
+38 067 310 54 40
https://city-adm.lviv.ua/
Rynok Square, 1, Lviv, Lviv Oblast, Ukraine, 79000

PSD last updated

12 May 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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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RF: Lviv Liquidity Facility

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)