Arad Urban Rehabilitation and Parking Management

Location:

Romania

Project number:

48156

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

25 May 2016

Status:

Signed

PSD disclosed:

22 Mar 2016

Translation of this PSD: Romanian

Project Description

The EBRD is considering a senior loan of up to EUR 20 million to the City of Arad ("the City"), an existing client, located in the western part of Romania. The loan will finance investments in the city's urban mobility plan, with a specific focus on parking management systems and related investments.

This project is proposed under Romania: Sustainable Mobility and Access to Road Transport Framework ("SMART") which was approved by the Board on 25 November.

Project Objectives

This project focuses on implementation of a modern, integrated parking management system and associated investments. In addition, it will enable the city to: (i) set up and enforce a parking regulation system; (ii) improve transport operations in the metropolitan area with some support from the Bank; (iii) participate in a benchmarking programme for the urban transport sector.

Transition Impact

The transition impact is expected to come from:

  • Introduction of an integrated parking policy as essential element of mobility and better public transport; potential introduction of private sector participation ("PSP") for parking operations is also envisaged;
     
  • Promotion of an integrated transport system in the metropolitan area, with some advisory support from the EBRD under the benchmarking programme;
     
  • Participation of the city and its transport operator in a public transport benchmarking programme

Client Information

CITY OF ARAD

Arad, located near the Hungarian border, is a significant regional transportation hub and commercial centre, with population of 170,000.

EBRD Finance Summary

EUR 20,000,000.00

Total Project Cost

EUR 25,025,000.00

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social impacts associated with urban rehabilitation and improved parking management are readily identifiable, are expected to be largely positive and will include improvements to the quality of urban infrastructure and smoother traffic flow. The overall effect will be to significantly increase regulated parking capacity in the city, which should eliminate the current informal parking practices. EBRD has reviewed the initial feasibility study and the environmental and social report prepared by the Bank's technical and environmental consultant, and has discussed the project with the consultant's environmental and social specialist. As the project falls within Annex II of the EIA Directive, the project developer will need to apply to the Environmental Protection Agency for a decision as to whether an EIA is required. This has not yet happened but it is a requirement of the ESAP, to be carried out before construction starts.

The project will involve the removal of more than 3000 parking garages in eight residential areas. These are located mostly in the courtyards of apartment blocks, which is city land that is leased to users on an annual basis. These areas have not been well maintained and are generally in a poor condition. Removal of the garages and upgrading of the courtyards and will require either compensation or adequate alternative provision for the current users. A compensation plan that meets Romanian law and EBRD PR5 will need to be developed and disclosed for consultation, prior to the start of any construction work. Successful implementation of the project will also depend on (i) meaningful consultation with local residents to ensure community support and maximise benefits, (ii) preservation and, where possible, enhancement of green spaces and children's play areas, and (iii) adequate contractor management to minimise environmental and social risks. These issues are addressed in the ESAP, which will need to be agreed with the client prior to loan signing. Implementation of ESAP will enable the project to comply with EBRD Performance Requirements and Romanian law. The Bank will monitor this implementation through annual environmental and social reports provided by the client.

Technical Cooperation

The project will benefit from technical cooperation under the SMART Framework including:

Pre-Signing

Technical, environmental and social due diligence (EUR 40,000) to include (i) a technical review of the existing feasibility studies for road rehabilitation; (ii) support for drafting functional specifications of the works to be tendered and support for the tendering process, (iii) preparation of an integrated parking policy and (iv) an environmental and social analysis of the Project.

Post-Signing

Participation in a sector wide benchmarking programme (EUR 60,000).

Company Contact Information

Laura Bocancios
lbocancios@primariaarad.ro
+40257212478
www.primariaarad.ro

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Text of the PIP

Project Complaint Mechanism (PCM)

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Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.