BELGRADE MUNICIPAL INFRASTRUCTURE RECONSTRUCTION PROGRAMME

Location:

Serbia

Project number:

17300

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

24 Jul 2001

Status:

Complete

PSD disclosed:

13 Jul 2001

Project Description

Proposed municipal loan of up to € 60 million to improve urban transport, water supply, waste-water treatment and district heating services in Belgrade.
The objective is to finance priority investment to improve the services provided by the Belgrade Public Transport Company, the Belgrade Water Company and the Belgrade District Heating Company.

Transition Impact

The operation would demonstrate that loans can be extended directly to municipalities in FR Yugoslavia without a sovereign guarantee.
The operation would also assist the city in reorganising and commercialising urban transport, municipal water and district heating services.

The Client

In 2001, the € 60 million loan was signed with the City of Belgrade to finance 3 project components, with the beneficiaries being Belgrade Public Transport Company, the Belgrade Water Company and the Belgrade District Heating Company.

EBRD Finance

In 2001, a municipal loan of up to € 60 million was extended directly to the City of Belgrade with no sovereign guarantee. 
In 2014, the Bank is considering restructuring of this loan, in a way that the outstanding amount under the water component of € 5.66 million is transferred to the Belgrade Water Company and the outstanding amount under the district heating component of € 4.35 million is transferred to the Belgrade District Heating Company. The City will continue to be responsible for the debt service of the portion related to urban transport.

Project Cost

Total project costs are estimated at € 121 million.

Environmental Impact

The project has been screened B/0 requiring environmental analyses of the three components of the proposed municipal infrastructure rehabilitation programme. The analyses are currently being finalised. No significant environmental impacts are anticipated in association with the proposed investment programme. When implemented, the investments will bring significant environmental and public health and safety benefits to the population of the City of Belgrade by: (i) providing a new fleet of buses which will comply with EU air emission standards; (ii) providing sufficient amount of drinking water and improving drinking water quality; and (iii) increasing energy efficiency resulting in reduced greenhouse gas emissions from the heating plants.
Based on the findings of the environmental analyses, where necessary, appropriate environmental action plans will be prepared and incorporated in the legal agreement governing the operation.

Technical Cooperation

TC funding will be used to finance:
  • preparation of corporate development programmes for the participating municipal companies;
  • preparation of a creditworthiness enhancement programme for the city of Belgrade;
  • advisory services for reforms to the system of local government finance;
  • an independent lender’s supervisor.
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

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.