Project Description
The provision of a senior loan of up to EUR 12 million to the Autonomous Province of Vojvodina (the "Province") for financing the energy efficiency measures in up to 80 public buildings across the Province. The Project will be co-financed by an investment grant of EUR 2 million provided by the European Union under the Regional Energy Efficiency Programme ("REEP") for the Western Balkans. In addition, technical cooperation ("TC") support of EUR 1.9 million expected to be provided by the REEP, the Swedish International Development Cooperation Agency ("Sida"), and the Central European Initiative ("CEI").
Project Objectives
The Project is expected to result in energy cost savings and reduction of CO2 emissions, as well as improvement in the comfort of indoor conditions. In total, up to 80 public buildings will benefit from energy efficiency measures including (i) installing thermal insulation to building walls and roofs, (ii) upgrading heating, ventilation and air conditioning systems, including replacement of inefficient and/or coal fired boilers, (iii) installing high-efficiency lighting systems, and (iv) replacing inefficient windows with insulated windows.
Transition Impact
ETI score: 60
Primary TI Quality - Green:
The Project will primarily help promote the Green transition quality as it facilitates energy efficiency renovation of public buildings, contributing to mitigating climate change. The Project is expected to result in around 53 per cent of savings in total energy consumption, 56 per cent of savings in CO2 emissions, and significant health and environmental benefits.
Client Information
PROVINCE OF VOJVODINA
EBRD Finance Summary
EUR 12,000,000.00
EUR 12,000,000
Total Project Cost
EUR 14,000,000.00
EUR 14,000,000
Additionality
Financing Structure
- EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions, e.g. a longer grace period. Such financing is necessary to structure the project.
- Public sector: the EBRD investment is needed to close the funding gap. At the same time, the EBRD does not compete with funding from other sources, such as from IFIs, government, commercial banks and/or complements them.
Risk Mitigation
- EBRD helps the client to mitigate carbon transition risks and take climate action, such as to move along a low carbon transition pathway.
- EBRD helps the client to mitigate physical transition risks and take climate action, such as to identify and manage physical climate risks and build resilience to them.
Standard Setting
- Client seeks/makes use of EBRD expertise over energy and resource efficiency and climate resilience financing via provision of energy and climate audits, minimum performance standards of technologies, climate related strategies and policies, monitoring, reporting and verification (MRV) systems etc.
- Client seeks/makes use of EBRD expertise for the adoption of gender standards and/or equal opportunities action plans.
Knowledge, innovation, and capacity building
- 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 client.
Environmental and Social Summary
The project is categorised B (ESP, 2019). Environmental and social due diligence (ESDD) comprised of an audit carried out by independent consultants, including a site visit of a sample of 22 public buildings. The findings of the ESDD were that the Energy Secretariat have some elements of environmental and social management in place and are in compliance with national legislation. The Environmental and Social Action Plan (ESAP) has been prepared and agreed with the Client. The ESDD confirmed that the Project is structured to meet the Bank's Performance Requirements (PRs) through ESAP implementation.
The project is expected to have significant benefits related to energy efficiency for up to 80 public buildings across 20 municipalities in Vojvodina in the educational, administrative, and healthcare sectors. The official list of buildings to be included in the Project has not yet been finalised. Currently approximately 40 of the selected buildings are owned by the Autonomous Provincial Government of Vojvodina and the remaining buildings are owned by local Municipalities. The focus of works will be on the building envelope insulation, heating, ventilation and air conditioning systems to improve energy efficiency and reduce emissions. The installation of rooftop solar panels on the public buildings will also be considered for some facilities, which will be determined as part of the update of energy efficiency audits. The Project is expected to reduce annual GHG emissions by around 3,923 tonnes CO2e per year and primary energy consumption by 61,642 GJ per year. Additionally, the ESAP stipulates the measure for the client to share the exact carbon savings with EBRD, once all energy efficiency measures are implemented.
The Energy Secretariat and the PIU do not currently possess or operate an Environmental and Social Management System or E&S Policy; the ESAP requires the development of an integrated Project-specific Environmental, Health, Safety and Social (EHSS) Management System at the PIU-level. In addition, for each building, a site-specific Construction Phase Environmental, Health, Safety and Social Management Plan (CESMP) will be developed and implemented by the Contractor, and approved by the PIU prior to start of construction. An ESMP has been developed during ESDD; it outlines the E&S mitigation measures to be followed during the construction phase of this Project and will be included in the construction contractors' contract. The responsibility for construction supervision rests with independent Supervision Engineers who will act on behalf of the PIU. No national Environmental Impact Assessment is required for this project.
The PIU EH&S Specialist will develop a Project-specific OH&S Policy, as captured in the ESAP. The CEMP will include health and safety, environmental controls, plans for community health and safety, and emergency preparedness and response plans. The Project includes replacement of inefficient boilers; the ESAP requires the PIU and Design Engineer to ensure that new boilers supplied are aligned to EU specifications on air emissions. Although some of the sites are located close by to Emerald sites, no permanent or temporary loss of fauna or flora is expected. Asbestos containing materials will likely be present in the selected buildings. Therefore, an asbestos survey is required in the ESAP for all buildings and the implementation of an Asbestos Management Plan will be covenanted. The ESAP also requires that asbestos is not to be used in any project renovations. The thermal insulation of walls and roofs will be suitably fire-rated by the Supplier, as prescribed in national standards. The ESAP requires that the Design engineer submit a fire safety report to the PIU.
Overall, the Energy Secretariat has good labour standards and strictly follows the Serbian labour Code. The ESAP requires that a PR2 compliant Project-specific HR Policy is developed including statements on non-discrimination, gender-based violence and harassment, workers organisations, workers' rights and non-employee workers. Contractors must also comply with the Project-specific HR Policy and code of conduct as part of their contract. Approximately 20 per cent of Energy Secretariat employees are members of trade unions and the Secretariat is covered by a collective bargaining agreement. No retrenchment will be caused by the Project activities. The project will include the procurement of solar panels, therefore supply chain risks relating to solar elements will be mitigated with a supply chain management system and measures which are included in the ESAP, to ensure that the project complies with the EBRD Management Approach for solar supply chain risk management.
No land acquisition or permanent resettlement and/or economic displacement will be caused by the retrofitting of existing buildings. The Energy Secretariat will work with contractors and building representatives to develop phased construction schedules that attempt to avoid any temporary relocation. If temporary relocation is necessary over a defined period of time, the Energy Secretariat will organise written agreements with building representatives to agree on the terms for this temporary relocation. A Stakeholder Engagement Plan (SEP) has been developed during the ESDD. A formal grievance mechanism is to be set up as part of the Stakeholder Engagement Plan (SEP). The Secretariat maintains its own official webpage (on which the SEP and Non-Technical Summary will be published before signing). Approximately 19 of the list of 95 buildings potentially selected for the Project are protected and under the supervision of the Institute for Protection of Monuments. Therefore, the Design Engineer will obtain the necessary approval and permits from the relevant Authority and apply associated mitigation measures, as captured in the ESAP.
The Bank will monitor the project through annual environmental and social reports provided by the Client, and site visits if necessary.
Technical Cooperation and Grant Financing
Pre-signing:
TC1: Environmental and Social Due Diligence and Economic Analysis.
TC2: Assessment of Energy Efficiency in Public Buildings, Autonomous Province of Vojvodina.
Post-signing:
TC3: Designs and PIU Support, including preparation of preliminary designs, tender documentation, support in tendering process and project implementation, and conducting ex-post energy audits.
TC4: Supervision of works.
Company Contact Information
Teodora Stanisic
Teodora.Stanisic@vojvodina.gov.rs
+381 21 487 4898
Provincial Secretariat for Energy, Construction and Transport
Bulevar Mihajla Pupina 16,
21000 Novi Sad, Serbia
PSD last updated
23 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.
