Chisinau Urban Road Sector Project

Location:

Moldova

Project number:

42218

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

22 Nov 2011

Status:

Repaying

PSD disclosed:

19 Sep 2011

Translated version of this PSD: Moldavian

Project Description

The EBRD is considering providing financing to the City of Chisinau to finance the rehabilitation of the main streets in the City centre. The project has two components:

(1) street rehabilitation works, covering the renewal of roads and pavements, building new central pedestrian areas, as well as the establishment of on-street parking facilities to be used under a new parking charging scheme; and

(2) public and street lighting refurbishment which will entail the replacement of the existing high pressure mercury-based lamps with modern energy-efficient technology. This is expected to produce budgetary savings for the City as a consequence of energy efficiency gains.

Transition Impact

The project will contribute to transition in the following ways:

  • Private Sector Participation will be increased through i) tendering out road rehabilitation and maintenance works to the private sector, switching from current maintenance by the municipality, and ii) tendering out management and enforcement of on-street parking to the private sector. Further potential for private sector engagement for off-street parking via Public Private Partnerships (‘PPPs’) will be targeted during the development of a long term parking strategy.
  • Frameworks for markets will be strengthened by the introduction of economic management of parking (both charging and enforcement) across the city and replacement of semi-annual road maintenance contracts by multi-year road maintenance contracts. Currently semi-annual street maintenance contracts are being awarded to a municipally-owned company on a negotiated value basis. The multi-year contract should allow the successful company to invest in machinery and significantly increase efficiency in road infrastructure maintenance.
  • Transfer of skills. The technical co-operation for the Project Implementation Unit (‘PIU’), long term road maintenance contracting and implementation technical supervision will lead to a transfer of skills to the City’s staff employed at the Transport Department responsible for design, execution and management of the road network in the City. Furthermore, specific training modules will be included in the Terms of Reference (‘TORs’) and through active and sustained day-to-day activities working alongside the consultant teams on contracting and project management and supervision.
  • Demonstration of new products and processes: the Project will have a strong demonstration effect as this will be the first example of highly efficient street lighting (such as LED) as well as organised on-street parking facilities.

The Client

The EBRD loan will be provided to the City of Chisinau (the “City”).

EBRD Finance

The EBRD will provide a non-sovereign loan to the City in an amount of up to €14.4 million. The loan will comprise a tranche of up to EUR 10.3 million for the Bank’s own account, and a tranche of up to EUR 1.4 million funded by the Green Energy Special Fund (“GESF”) administered by the Bank.

Project Cost

The overall project cost is up to €35.7 million. The includes parallel financing from the European Investment Bank (‘EIB’), a contribution from the City in an amount of €9.5 million to finance water and heating infrastructure on the selected streets and a loan from the Green Energy Special Fund (‘GESF’) to finance the street lighting component. The project also includes €1.2 million for post-signing technical cooperation.

Environmental Impact

The proposed project has been categorised B in accordance with the 2008 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, includes an independent third party environmental and social audit to assess the Client’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism. and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

Pre-signing

  • Technical Scoping and Urban Road Safety Review of investment programme. The consultant has reviewed the existing studies and designs prepared by the City, and performed a technical road safety audit of the planned investments. €70,000, funded by Early Transition Countries Fund.
  • Project Environmental and Social due diligence on the proposed investments. €25,000, funded by the MEI budget.

Post-signing assistance

  • PIU support consultants for:

    (i) design finalisation, full procurement support, contract implementation and technical supervision for the road rehabilitation works contracts in accordance with the Bank's PP&R, and

    (ii) multi-year street maintenance contract under local procurement law with the total cost up to €900,000. The funding source is to be determined.
  • Assistance to the City to implement multi-year street maintenance contract under local procurement law with the total cost up to €100,000 to be funded by the Czech Republic.
  • Development of a long term parking strategy (to include on and off – street components) for the City, including design and implementation of the on-street parking charging scheme under an on-going electronic ticketing system. . This will include focus on enforcement of parking as a means of controlling congestion. The cost will be up to €200,000. The funding source is to be determined.

 

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

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.