Chisinau Urban Enhancement Project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

A sub-sovereign loan ("the Loan") to the City of Chisinau (the "City") to finance the extension and upgrade of three primary urban road links, which are crucial road arteries totaling ca. 8.5km in the city of Chisinau, and to support related local area development: (i) Mircea cel Batran avenue; (ii) Industriala street; and (iii) Mesager street.

The Project benefits from a first loss risk cover from the European Fund for Sustainable Development plus ("EFSD+") Municipal Infrastructure and Industrial Resilience ("MIIR") guarantee programme. The programme contributes to transitioning economies in the European Neighbourhood South and European Neighbourhood East by supporting sustainable investments in green city infrastructure, greening logistics chains, energy efficiency and green technology transfers in industrial processes, commercial operations and buildings.

Project ID 55461

Status Passed Final Review, Pending Approval

Location

Moldova

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

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

Project ID 55461

Status Passed Final Review, Pending Approval

Location

Moldova

Business Sector

Municipal Infrastructure

Notice Type

State

Environmental Category

Approval Date

11 Jun 2025

Disclosure date

26 Feb 2025

PSD translation (Romanian) (PDF, 0.36MB)

Project Description

Project Objectives

The Project aims to provide the City with the key enabling infrastructure to: (i) support zonal urban development plans and boost industrial and economic development; (ii) promote sustainable mobility through improved traffic management and integration of facilities for sustainable and inclusive mobility, in accordance with the sustainable urban mobility plan ("SUMP"), (iii) incorporate nature positive measures.

The operation will enable the City to provide essential access to new urban development areas to cater for its evolving population, social and economic needs. Furthermore, it shall integrate all relevant provisions for sustainable mobility modes, provide quality and inclusive urban spaces for its citizens and support the development of practices that enhance and build resilient urbanisation.

Transition Impact

ETI score:67

expected transition impact stems from the Integrated quality, by providing a well-designed travel path that offers sufficient space to accommodate all road users, including pedestrians, the elderly, people with disabilities, cyclists, public transport users, as well as cars and commercial vehicles. The Project will also contribute to the Green quality via the promotion of sustainable mobility modes, encouraging a modal shift away from private vehicles and emissions reduction, notably through the provision of infrastructure and facilities for public and shared mobility. In addition, the Project will support the City to develop an integrated Urban Enhancement and Resilience Programme ("UERP") to further pursue actions integrating a package of investments and measures for urban area improvements alongside intelligent transport systems and mobility policies.

Client Information

CITY OF CHISINAU

The borrower will be the City of Chisinau, 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 over 571.6 square kilometres of land area. 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 60 per cent of the national economy.

EBRD Finance Summary

EUR 68,200,000.00

Sub-sovereign financing is to be provided in three tranches.

Total Project Cost

EUR 70,100,000.00

The loan is expected to be complemented by an investment grant.

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 (2019 Environmental and Social Policy). This Project is expected to result in new urban development areas, to expand sustainable and resilient transport infrastructure and to improve traffic flows on some major urban avenues. The Project shall notably integrate sustainable mobility principles by extending trolleybus lines and/or establishing dedicated public transport lanes and accessible bus stops, infrastructure and facilities for active mobility (cycling, walking etc.), including related street lighting, ensuring safe and efficient traffic management and pedestrian crossings and anticipating provision for electric mobility.

The City of Chisinau has prepared the full design of the Project, which has been approved by the State Expertise. Furthermore, with a help of an external consultant, the Project was reassessed to serve all mobility needs, define, and ensure the integration of all related design changes into a future revised design. The Bank commissioned a Feasibility Study assignment in October 2024, where an independent consultant carried out a series of due diligence assessments on the existing Project design, including the Environmental and Social Due Diligence ("ESDD"), technical due diligence, a road safety audit and climate assessment. Following the review of the Feasibility Study, assessment of alternatives and ESDD, it was determined that the Environmental and Social ("E&S") impacts associated with this Project are assessed to be readily identified and managed via the implementation of an Environmental and Social Action Plan ("ESAP"). An Environmental and Social Management Plan, a Stakeholder Engagement Plan ("SEP"), a Non-technical Summary, Resettlement Framework ("RF") and the ESAP have been prepared for the Project, which were agreed with the Client and will be disclosed by the Client prior and during Project implementation.

The Project has already obtained all necessary permits that are required prior to the start of the works, in accordance with national legislation (an Environmental Impact Assessment is not required). However, since the initial designs were developed in 2022, some of these permits have since expired, and need to be re-validated. ESDD has identified the need for improvements to the Clients environmental, health and safety and labour and contractor management arrangements, which requires capacity building, resources and improved oversight arrangements to be put in place to structure the Project to meet the Banks Performance Requirements ("PRs") which have been addressed in the ESAP.

Potentially relevant impacts on land and livelihoods will be addressed through the implementation of an appropriate livelihood restoration plan, which will be developed based on the land acquisition requirements and the RF developed as part of the ESDD. No physical displacement is anticipated, but potential temporary restrictions in access to land might result in livelihood impacts during rehabilitation activities, impacting continuation of the small-scale businesses during the construction stage. This will be addressed via measures and compensation agreed with Project affected people and businesses in line with PR 5.

The ESAP includes actions for the Client in relation to developing an Environmental and Social Management System and related management plans for the construction and operation phases of the Project. It will also require the Client to dedicate E&S and Health and Safety resources within the Project implementation unit ("PIU") through the PIU technical cooperation assignment for the execution of the Project in compliance with Bank's and local legislation requirements and improve contractor management monitoring. A Project Implementation Support and Supervision consultancy team with adequate E&S resources will be engaged to ensure implementation of the ESAP and applicable E&S requirements. As for some sections of the Project, the construction activities will be undertaken while a part of the road will be in operation, requiring particular attention to stakeholder engagement, traffic management and road safety, including occupational road risk management arrangements.

Stakeholder engagement activities have been undertaken as part of the Feasibility Study with the help of an independent consultant and the Client will ensure that the SEP is implemented during the whole life cycle of the Project, and a third-party grievance mechanism is in place and operational.

The EBRD will monitor the Project's environmental and social performance and compliance with EBRD PRs by reviewing reports on environmental and social matters, and implementation of the ESAP. Site visits to monitor the Project will also be carried out periodically during construction.

Technical Cooperation and Grant Financing

The following technical cooperation ("TC") assignments are envisaged as a part of this Project:

Feasibility Study - financed by the European Union under the EFSD Municipal Infrastructure and Industrial Resilience Guarantee Programme ("EFSD+ TC funds").
Advance Procurement Support - financed by the EBRD Sustainable Infrastructure Fund.
Project Implementation Support and Works Supervision - expected to be partially financed from EFSD+TC funds and partially from other sources (to be confirmed).
Urban Enhancement and Resilience Programme - funding source to be confirmed.

The Project will be complemented by an investment grant of up to EUR 1.9 million expected to be partially financed from the EBRD Shareholder Special Fund and partially from other sources (to be confirmed). The investment grant will finance nature-inclusive measures (Lake 4 area enhancement of La Izvor Park - Green Corridor and Nature Space) promoting urban biodiversity in the City. The Project will also benefit from EFSD+ MIIR Guarantee Programme.

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

29 May 2025

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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Chisinau Urban Enhancement Project

Overview

Project timeline

Company Contact Information

Project Description

Project Objectives

Transition Impact

Client Information

EBRD Finance Summary

Total Project Cost

Additionality

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)