Project Description
The proceeds of the Bank's loan and the grant funds will be used to (i) expand and improve City's public passenger transport and (ii) reduce the energy consumption and carbon footprint of the street lighting system, while enhancing road security and safety at night by improving the quality of street lighting.
The Project envisages: (i) purchase of approximately 22 battery trolleybuses, with autonomous propulsion for up to 20 kilometres, for an estimated amount of up to EUR 5.8 million, and (ii) modernisation of street lighting on priority streets, for an estimated amount of up to EUR 1.2 million.
Project Objectives
The Project will promote resource efficiency and reduce CO2 emissions and other pollutants in the city by expanding the energy-efficient trolleybus service, as well as supporting route flexibility and resilience due to innovative autonomous battery. This enables the trolleybus to drive around potential accidents/roadworks, deliver mobility to areas without overhead lines, and also continue safe operations in the case of a grid failures where overhead charging is not available. It will also improve energy efficiency in the city by modernising its street lighting infrastructure.
Transition Impact
ETI score: 70
The Project will promote the Green transition quality by financing the acquisition of new trolleybus fleet and modernisation of street lighting infrastructure which will lead to reduction in CO2e emissions by 20 per cent. Additionally, it will reduce air pollutants (namely NOx, PM, SO2 and VOC). As a follow-on project under the GCAP, it addresses the priority environmental challenges of air quality and enhances energy efficiency of the street lighting.
The Project will also support the Inclusive transition quality via the mainstreaming of gender and social inclusion. Through the adoption of inclusive design principles such as low-floors in the trolleybuses, the Project will help to significantly increase access to public transport services for people with limited mobility (people with disabilities, the elderly and parents with care responsibilities). This will further increase social inclusion in the city. In addition, the adoption of cameras in trolleybuses and the introduction of qualitative street lighting in the city will improve the safety at night for all residents.
Client Information
CITY OF BALTI
The proposed loan will be to the City of Balti (the "City").
Balti is the second largest city in the country in terms of population, area and economic importance, after Chisinau. It is located in the north of Moldova, 138 km from the capital Chisinau. Its geographic position provides it a significant role in the region as a hub and an urban centre for municipal and health services. Balti has a population of around 150,000, representing around four percent of the total population of the country and covers an area of 78 square kilometres.
EBRD Finance Summary
EUR 4,600,000.00
The facility will consist of a sub-sovereign secured loan to the City of up to EUR 4.6 million to support the City in providing sustainable and quality trolleybus services that are accessible to all and securing sufficient street lighting levels in public areas according to national and best practice standards to promote increased safety for all.
Total Project Cost
EUR 7,000,000.00
The loan will be complemented by an investment grant of up to EUR 2.4 million to be provided by the Eastern Europe Energy Efficiency and Environmental Partnership ("E5P").
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
Categorised B in line with EBRD's Environmental and Social Policy (2019). The Project will mainly have environmental and social benefits and will enhance accessibility and mobility for all user groups, and improve air quality in the city and overall quality, safety and efficiency of the urban transportation and street lighting. Environmental and Social Due Diligence ("ESDD") was undertaken by an external international consultant together with technical due diligence and focused on the key Environmental and Social ("E&S") impacts/risks and the City's capacity to implement the Project in line with the Bank's Performance Requirements ("PRs"). Opportunities to enhance gender and inclusion, safety of vulnerable groups and also prevention of Gender-Based Violence and Harassment ("GBVH") concerns, along with stakeholder engagement and current grievance mechanisms were investigated and relevant recommendations provided. ESDD also included a supply chain scanning of potential trolleybus suppliers. During the tendering process the Bank's standard requirements on forced and child labour risks were applied (EBRD's Standard Procurement Documents), which are considered to be sufficient to manage any supply chain risks. The Client, will develop and adopt supply chain management system which will be proportionate to the risks and maintain reporting to the Bank if any concerns arise in future.
The Project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, it is confirmed that the Project will not have significant adverse social impacts to local communities or other Project affected parties, nor will the Project require the acquisition of land or result in involuntary resettlement or economic displacement. An Environmental and Social Action Plan ("ESAP") has been developed to address the areas for improvement identified during the ESDD and will be agreed with the Client and included in the legal agreements. Additional capacity building support with implementation of the ESAP will be provided as part of the Project Implementation Support TC. The environmental and social performance of the Project and implementation of the ESAP will be monitored through annual E&S reports and site visits when deemed necessary.
Technical Cooperation and Grant Financing
Pre-Loan Signing:
- Project Due Diligence to conduct technical, economic, environmental and social due diligence. The cost of the assignment is EUR 74,900, financed by the EBRD Shareholder Special Fund (the "SSF").
- Advance Procurement Support to facilitate the timely and effective implementation of the Project, mainly thorough the assistance with tendering process, contracts signing and assistance with administration of the supply contracts (in respect to procurement of trolleybuses ). The cost of the assignment is EUR 74,950, financed by the Sustainable Infrastructure Fund (the "SIF").
Post-Loan Signing:
- Project Implementation Support to the City for the preparation of tender documents, tenders evaluation, design, subsequent contracts supervision of works (in respect to street lighting component of the Project) and support in disbursement, overall project management and reporting. The estimated cost of the assignment is up to EUR 400,000, proposed to be financed by an international donor or the SSF.
- Corporate Development Programme to the City to support implementation and monitoring of new Public Service Contracts ("PSCs"), various system improvements, route planning, communication products. The estimated cost of the assignment is up to EUR 350,000, proposed to be financed by an international donor or the SSF.
Company Contact Information
Vitalie Balan
primaria@balti.md
+373 231 54634
www.balti.md
1, Independentei street, Balti, MD-3100, Republic of Moldova
PSD last updated
28 Jul 2023
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.
