Bishkek Public Transport Project

Location:

Kyrgyz Republic

Project number:

41492

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

11 Oct 2011

Status:

Signed

PSD disclosed:

02 Feb 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering providing a loan of up to US$ 10 million to the Kyrgyz Republic, to be on-lent to the City of Bishkek for the benefit of the municipal trolleybus company. A further US$ 5.5 million grant to co-finance the project is envisaged from an international donor. It is planned the project will finance

(i) purchase of new trolleybuses and
(ii) a partial rehabilitation of the related infrastructure.

In addition, the project will support the introduction of e-ticketing in the municipally operated public transport sector in the City of Bishkek.

The EBRD considers supporting further improvements of the public transport system in the City of Bishkek and would extend a sovereign loan of up to EUR 5.0 million (provided in several tranches) to the Kyrgyz Republic. The loan funds will be on-lent to the City of Bishkek for the benefit of the Bishkek Trolleybus Company. It is also expected that the loan will be co-financed by a EUR 2.9 million EBRD Shareholder Special Fund grant (provided in several tranches). The proceeds of the loan and the grant will be used for the purchase of 49 new low floor trolleybuses.

Transition Impact

Transition Impact of the project comes from:

(i) Commercialisation of the Company supported by the implementation of a public service contract;
(ii) Performance improvement through more modern and reliable trolleybus fleet and as a result of the public service contract;
(iii) Tariff reform to support the sustainable provision of public transportation services;
(iv) Private sector participation in a form of operating an e-ticketing system; and
(v) Environmental impact and energy efficiency arising from the introduction new trolleybuses.

The Project Extension will target the following transition impact objectives:

  • Framework for markets. The Project will focus on

    (i) development and gradual implementation of a new route network through open tendering,

    (ii) introduction of a new approach to regulation of private operators through tendering and contracting,

    (iii) deployment of a new Public Service Contract for private operators in order to integrate them in a single transport system,

    (iv) facilitation of transition from small capacity inefficient minibuses to high capacity vehicles.
     
  • Demonstration effect - Private ownership. The Project will have a strong demonstration effect as it will create regulatory framework for integration of private operators into a single public transport system.
     
  • Energy efficiency. Introduction of additional trolleybus routes will allow to achieve energy savings of up to 3 million kWh annually. CO2 emissions will be reduced by up to 4,410 tons per year.

The Client

The loan is made to the Kyrgyz Republic, to be on-lent to the City of Bishkek for the benefit of its trolleybus company. The ultimate beneficiary is the Bishkek Trolleybus Company (“BTC”), a municipally-owned company providing trolleybus transportation services in the City of Bishkek.

EBRD Finance

An EBRD sovereign loan of US$ 10 million to be on-lent to BTC.

For the Project Extension – a sovereign loan of US$ 5 million to be on-lent to BTC.

Project Cost

US$ 16.0 million, including related technical cooperation funds.

US$ 8.4 million, including related technical cooperation funds.

Environmental Impact

The potential adverse environmental and social impacts associated with renewal of the City's trolleybus and mid-sized bus fleet, rehabilitation of power supply infrastructure, and supply of main maintenance equipment are expected to be site-specific and can readily be identified and addressed through mitigation measures. Therefore, the project has been categorised B. The project will result in improved efficiency and quality of transport services. The environmental and social due diligence is currently underway and involves a review of the management systems and activities of the City's Transport Department, an audit of the depots and maintenance facilities to be used by the new trolleybus and mid-sized bus fleets, and an environmental and social analysis of the proposed investment programme.

The Project Extension has been categorised B in accordance with 2008 Environmental and Social Policy. The proposed Project Extension builds on the existing Bishkek Public Transport Project, which financed the procurement of 79 new trolleybuses and partial upgrade of the related trolleybus network infrastructure. This Extension would finance the procurement of further 49 new trolleybuses to partially replace the oldest part of and increase the size of the operational trolleybus fleet to further improve the efficiency and quality of public transport services.

The environmental and social due diligence has been undertaken by mobilising monitoring consultants to verify the implementation status of the Environmental and Social Action Plan (ESAP) agreed for the initial Project. The review of the 2014 Annual Environmental and Social Report for the original project indicated that the operations of the Company are in compliance with the national regulatory requirements for environment, health and safety, and labour. The results of the ESDD show that the management team’s  focus has mainly been on legal compliance and only limited progress has been made with respect to ESAP implementation. The Company needs further strengthening of  EHSS management capabilities and EHSS management systems, and its occupational health and safety and stakeholder engagement practices also require further improvement to meet EBRD's Performance Requirements. The Bank will explore ways in which it could further assist the Company in building its corporate EHSS capacity and implementing the ESAP.

A site visit by the Bank’s Gender Specialist confirmed that the client has made significant progress in incorporating the EBRD supported Gender Action Plan throughout its operations. The gender actions are focusing on:

  • Incorporating gender mainstreaming report findings into the Project
  • Organizational strengthening and institutional capacity building of secondary stakeholders
  • Employment and Livelihood Enhancement Opportunities
  • Vulnerable Groups and Affordability

Environmental and Social Action Plan (ESAP) agreed for the original project has been updated to reflect the need for further improvements as identified in the ESDD.

The Company will continue to provide the Bank with Annual Environmental and Social Reports and notify on any material accidents or incidents. The Bank will evaluate the Project’s environmental and social performance in accordance with the Bank’s PRs by reviewing the Company reporting and undertaking periodic monitoring visits.

Technical Cooperation

Pre-signing:

  • Technical Due Diligence - Including a detailed review of:

    (i) the operations of the transport companies,
    (ii) the condition of the related infrastructure,
    (iii) the EIRR of the proposed investment programme;
    (iv) legal due diligence on the feasibility of Public Service Contracts; and
    (v) environmental and social due diligence. (US$ 275,000 funded by the EBRD’s Shareholders’ Special Fund).
  • IFRS Audit of the municipal bus and trolleybus companies (US$ 34,240 funded by the Bank).

Post-signing:

  • Engineering Services, Implementation and Procurement Support for the Project Implementer - Support to the BTC for engineering design, tender evaluation, contract award and administration, financial control, project management, and reporting services (US$ 300,000 to be funded by donor funds).
  • Support for design and implementation of a new e-ticketing system in the City (US$ 450,000 to be funded by donor funds).

Post-signing for the Project Extension:

  • Project Implementation Support for the Company - tender preparation, evaluation, contract award and supervision. Proposed to be financed by an international donor, the ETC Fund or EBRD Shareholder Special Fund;
     
  • Public Transport Development Strategy for the City to include:

    (i) review of City’s strategic planning documents and Urban Transport Master Plan;
    (ii) development of new public transport route network;
    (iii) preparation of routes tendering, private operators contracting strategy (for bus sector);
    (iv) drafting of full tender documentation for routes tendering, including Public Service Contracts (“PSC”);
    (v) assistance with launch and signing of a pilot PSC with private operators for bus services; and
    (vi) assistance to set up a PSC management system. Proposed to be financed by an international donor, the ETC Fund or EBRD Shareholder Special Fund.
 

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)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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