CFR Rail Traction Project

Location:

Romania

Project number:

36043

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

13 Dec 2005

Status:

Complete

PSD disclosed:

24 Aug 2005

Project Description

The proposed project will consist of the following project components:

(a) purchase of modern catenary maintenance vehicles;

(b) upgrading and rehabilitation of electric traction power supply equipment in the Criaova section of the network

(c) supervision of all works under the project.

Its main objective is to fund the selected priority cost reduction measures for the Company.

 

Transition Impact

  • Expansion of competitive/market interactions in the sector
    Through envisaged institutional building support, the Company is to transform from a passive energy consumer into a licensed energy distributor, to take advantage of the changes both in the railway sector (progressive privatisation and new private train operators) and the energy sector (planned separation of supply and distribution functions)
     
  • Contribution to market-based conduct and skills
    Impacts include

    (a) transfer and dispersion of skills in the areas of business planning and procurement;

    (b) a strong demonstration effect in delivery and cost-enhancing technology;

    (c) setting standards for corporate governance and business conduct: the Project will covenant operational and business planning strengthening measures aiding the transformation of the company into an efficient traction energy distribution company.

The Client

CFR Electrificare, a national railway traction distributor, 100% owned by CFR SA, the Romanian Railways Infrastructure Company.

EBRD Finance

A senior loan.

Project Cost

EUR 26 million.

Environmental Impact

The project was screened B/0, requiring an Environmental Analysis.

This was carried out by international consultants and dealt primarily with the environmental issues associated with the improvements to be made to the rail infrastructure. The draft report on the analysis concluded that there would be no significant environmental impacts associated with the Bank's Investment. Care will nonetheless be taken to ensure that the procurement of goods and services will be in compliance with EU and national environmental requirements and suppliers will exercise an acceptable level of environmental performance throughout their activities.

The consultants proposed to develop an in-house capacity for environmental management and to develop an Environmental Action Plan to include waste management, use of hazardous chemicals, noise abatement and environmental monitoring. In accordance with Bank requirements, a summary of the relevant environmental issues associated with the project will be disclosed in the local language at or near the project site. This section will be updated and amended as soon as the environmental due diligence has been completed.

Technical Cooperation

  • EUR 126,000 call off under PHARE Transport Team Framework Contract to assist the project Team in project due diligence;
     
  • Estimated EUR 200,000 – 250,000 to be mobilised to assist in institutional strengthening of the company (in particular, assistance in compliance with the energy sector regulatory requirements and the preparation of the medium term business plan);
     
  • EUR 50,000 to be mobilised to assist the Bank in technical and procurement review of the tender documentation for the project.
 

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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