Belgrade Public Transport and Traffic Infrastructure

Location:

Serbia

Project number:

42809

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

05 Jul 2017

Status:

Signed

PSD disclosed:

30 Jun 2011

Project Description

Provision of a loan of EUR 57 million in November 2011 to the City of Belgrade ("Original Loan") extended by additional EUR 30 million in July 2013 ("First Loan Extension") to co-finance key investments needed to complete the City's transport and traffic management programme. The loan proceeds are used for three components:

(i) major renovation of the tram tracks in central Belgrade to allow for the new trams to operate on the tram lines;

(ii) the City's main roads renewal and extension to secure a better and safer traffic flow in the City of Belgrade;

(iii) procurement of 30 new trams to be operated on refurbished tram tracks.

The third component has been fully implemented.  Segments of the first two components have been completed (Vojvode Stepe Street).  Otheres are currently under implementation (Slavija Square, Bulevar Oslobodjenja, Ruzveltova Street, Mije Kovacevica Street) with the expected completion by the end of 2017.

As a new phase (beginning in late 2017), restructuring of the outstanding amount under the Original Loan and First Loan Extension by revision of key financing terms and provision of an additional EUR 15 million ("Second Loan Extension") for continuation of investments under the second component above. The loan proceeds will be used for reconstruction of the Kneza Milosa Street and construction of an underground garage under this major City boulevard.

Project Objectives

Contribution to the completion of Belgrade's transport and traffice management programme 

Transition Impact

ETI score: null

Transition impact will be delivered through introduction of policies that promote commercialised approaches toward infrastructure management.  

The City of Belgrade is working on tendering out a number of locations in city center to private sector to construct and operate underground garages on a private-public partnership model for a period of up to 30 years. These will be the first privately-operated car parks in Belgrade and this will mark a significant change from the current ownership and operations by the city parking company. The successful monetisation of the existing spaces to leverage further investment in off-street parking infrastructure would have a strong demonstration effect for the whole region.

In addition, with regards to public transport operations in Belgrade, the City and the Belgrade Public Transport Company ("GSP") will revise their regulatory relationship bringing it more in line with commercial best practice. The City and GSP will set mode-specific targets for costs on a per kilometre basis for each sub-mode (tram, trolleybus and the four bus depots) through a Public Service Contract. This will enable achieving clearer cost efficiencies and performance at the individual transportation mode level. The performance-based service indicators will be monitored, reported and made publicly available through clear public information procedures.

Client Information

CITY OF BELGRADE

EBRD Finance Summary

EUR 73,914,520.00

EBRD has participated in the co-financing of the City's transport and traffic management strategy in the following amounts:

  • Original Loan in an amount of EUR 57 million signed in November 2011;
  • First Loan Extension in an amount of EUR 30 million signed in July 2013;
  • Second Loan Extension an amount of EUR 15 million, expected to be signed in July 2017.

In addition, EBRD will restructure its outstanding exposure under the Original Loan and the First Loan Extension in the total amount of EUR 64,452,065, expected to be signed alongside the Second Loan Extension in July 2017.

Total Project Cost

EUR 134,494,528.00

In addition to EBRD financing, the City of Belgrade will co-finance implementation of its transport and traffic management strategy from its own revenues. 

Environmental and Social Summary

The Project has been categorised B. The public transport and traffic infrastructure project approved and signed in 2011 is expected to result in benefits for residents in Belgrade, principally reduced congestion, faster journey times, improved public transport and associated reductions in air pollution. The most significant impacts identified relate to potential disruption to residents and businesses during construction. Environmental impacts are limited and the main issue is the need to preserve the mature trees that line many of the roads. Health and safety during construction will be managed through appropriate contractor management procedures. Potentially negative environmental and social impacts will be mitigated though: Environmental and Social Action Plan (ESAP), a Stakeholder Engagement Plan (SEP), and a Livelihood Restoration Framework (LRF), which have been agreed with the Belgrade authorities. As part of EBRD's reporting requirements, the City has been providing environmental and social reports annually which indicate that the ESAP has been implemented as required.

For the First Loan Extension, the Bank has reviewed the detailed technical specification and maintenance schedule for the trams, and confirmed that these are of a modern design and will meet EU standards for safety, noise, maintenance and materials recycling.

The Second Loan Extension is expected to contribute further to the original project aims and benefits for residents in Belgrade. Additional environmental and social due diligence will be carried out for the reconstruction of the Kneza Milosa street and construction of an underground garage along the reconstructed area. The ESAP, SEP and LRF developed for the original loan in 2011 will be updated to include information on the Kneza Milosa Street component and any newly identified impacts, as well as required mitigation measures. In addition, on the basis of the LRF, a Livelihood Restoration Plan is being developed to address impacts on businesses operating along the street section which will be reconstructed from the loan extension.

Technical Cooperation and Grant Financing

Technical assistance as part of the Original Loan

Pre-signing

  • Environmental and Social due diligence on the proposed investments (EUR 19,705 i funded from the Bank's own resources).
  • Technical Due Diligence on Investment Programme and Analysis of PIU Functioning (GBP 54,620 i funded from the Bank's own resources).

Post-signing

  • PIU Project Management and Procurement Support (EUR 925,000, funded by the Western Balkan Investment Framework ("WBIF")).
  • Supervision of works (EUR 750,000, funded by the WBIF).
  • Update of the Belgrade SMART Plan (EUR 396,300, funded by the WBIF).

Technical assistance as part of the Second Loan Extension

  • Environmental, Social and Technical Due Diligence on the proposed new investment (EUR 45,000, funded from the Bank's own resources).
  • PIU Project Management and Procurement Support (EUR 500,000, proposed to be funded by the WBIF or an international donor).
  • Supervision of works (EUR 450,000, proposed to be funded by the WBIF or an international donor).

Company Contact Information

City of Belgrade
www.beograd.rs

Implementation summary

The Project contributed to the modernisation of key components of the City's public transport and urban road improvements, with the original loan of EUR 57 signed in 2011 million and its extensions of EUR 30 million signed in 2012 and EUR 10 million signed in 2017.

Three components were successfully completed to date: reconstruction of Vojvode Stepe Boulevard (completed in 2015); procurement of 30 new trams, co-financed with the City and EIB (completed in 2015); and reconstruction of Slavija Square, Boulevard Oslobodjenja, Rousevelt Street and Mije Kovacevica (completed in 2017). Construction of the tram track over the new Sava bridge and modernisation of the public transport shelters which were part of the original Project scope have been implemented from City's budget. The Project resulted in benefits for residents in Belgrade, primarily in reduced congestion, faster journey times, improved public transport and associated air quality. 

As part of Technical Cooperation support related to the Project, the Bank assisted the City in development of a Strategic Environmental Assessment and update of the City Urban Transport Plan (SMART Plan).  Furthermore, as a part of Transition impact, the project has contributed to Institutions, law, policies that promote commercialised approaches toward infrastructure management by supporting the City in preparation of the first PPP project in parking (awarded in 2019).

PSD last updated

12 Feb 2021

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.

 

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