D1 Motorway Phase I

Location:

Slovak Republic

Project number:

39007

Business sector:

Transport

Notice type:

Private

Environmental category:

A

Target board date:

27 Apr 2010

Status:

Cancelled

PSD disclosed:

17 Dec 2009

Project Description

The EBRD is considering providng a loan of up to €250 million to Slovenské diaľnice a.s. to finance the construction of D1/Phase I Motorway. The Project includes the design, construction, finance, operation and maintainance of 75 km of two dual carriageways within five sections of the D1 Motorway network in Slovakia, between Dubna Skala and Turany, Turany and Hubova, Hubova and Ivachnova, Janovce and Jablonov, and Fricovce and Svinia; under a 30 year availability fee-based concession. This concession is pursuant to a concession contract between the Ministry of Transport, Post and Telecommunications of the Slovak Republic and the concessionaire Národná diaľničná spoločnosť, a. s.

This is the second concession contract awarded for a PPP structure for motorway projects in Slovakia. The motorway would be constructed using private financing and utilising private efficiencies; and the concessionaire would introduce new operational, managerial and commercial practices.

Transition Impact

The proposed projects will further demonstrate viability of motorway concessions in the region (following the success of the PPP road programme in Hungary and the closing of R 1 - the first road PPP in Slovakia). The key areas of the transition impact potential are (i) private ownership and operations of the key corridors in the region with the participation of the experienced foreign sponsors and (ii) demonstration effects associated with the replications of more private motorway concessions in the region.

The Client

Slovenské diaľnice a.s.: special purpose company created by the consortium led by the industrial group formed by Bouygues Travaux Publics SA, DTP Terrassement SA, Colas SA, Mota Engil SGPS SA, Intertoll-EuropeZrt Doprastav a.s., Vahostav–SK a.s. and Meridiam Infrastructure Finance SARL.

EBRD Finance

Senior Loan of up to € 250 million.

Project Cost

€ 3.6 billion.

Environmental Impact

Environmental category and justification

The project has been categorised A/0 in accordance with EBRD Environmental Policy 2003. The construction of a new motorway could result in potentially significant adverse future environmental impacts, which, at the time of screening, could not readily be identified or assessed. Environmental and Social Impact Assessments (ESIA’s) have therefore been undertaken to identify and assess the future environmental and social impacts associated with the proposed project, identify potential environmental improvement opportunities, and recommend any measures needed to prevent, minimise and mitigate adverse impacts.

Information reviewed during the environmental appraisal

The environmental appraisal of this project has been based on the review of various environmental and social investigations carried out of the Project over its 16 year long preparation time span. The full documentation included the Environmental Statements and Environmental Impact Assessments (EIA) prepared under the Slovakian permitting process, Social Impact Assessment (SIA) permitting applications and decisions at the conceptual, zoning and building permitting stages. In addition further information on the potential impacts on the Natura 2000 network was also considered, as the EIA studies were prepared before the full implementation of the Habitats Directive (SK Act 543/2002). All these documents are available on the Ministry of Transport (MOT) PPP website - www.telecom.gov.sk (PPP Projects section).

Consideration of alternative routes and the selection of the route

Alternative route options and cumulative effects of the whole length of the D1 route were considered in a feasibility study undertaken in 1993. An update to the original study was performed in 2001.

The following main variants were considered:

  • Section 1 Dubná Skala – Turany: two variants (A1 and A2);
  • Section 2 Turany – Hubová: two main corridors (B1 and B2);
  • Section 3 Hubová – Ivachnová: one main route with 4 local variations;
  • Section 4 Jánovce – Jablonov: one route with variation around the town Levoča; and
  • Section 5 Fričovce – Svinia: two main variants (southern and northern).

The routes were evaluated and the final preferred routes were selected on the basis of the official feedback from the affected public bodies as well as the public comments collected within the process of preparation of the EIA reports.

Key environmental and social issues

The EIAs and SIA showed that the project would result in slight to moderate negative impacts during both the construction and operation. The assessments also showed that the proposed motorway sections would have a number of significant environmental and social benefits, mainly arising from the diversion of transit traffic away from a number of towns and villages to the motorway reducing congestion and road traffic accidents. The project is expected to reduce traffic-borne air emissions and noise disturbance in residential areas, and contribute to the development of the region due to the improvements in accessibility.

During and following the definition of the Natura 2000 sites in Slovakia various additional studies have been undertaken in relation to the Project’s impact on these designated habitats of European wide interest. Declarations from the Slovakian competent authorities have been prepared which confirm that if the proposed mitigation measures are implemented no significant effects should occur to Natura 2000 sites as a result of the Project.

The most significant adverse impacts are expected to be associated with traffic disturbance and restrictions on local traffic as well as localised noise and air quality impacts. However, these impacts can be minimised and mitigated through road design features, abatement measures (such as noise walls), work and maintenance practices as well as management systems to be implemented by the Concessionaire. The land take required for the project is moderate and is associated with a few displacement issues; however a Resettlement Action Plan will be required for the project and is currently under development.

Disclosure of information and consultation

A series of public disclosure and consultation procedures have been carried out in accordance with the Slovakian regulatory requirements in the course of the preparation and permitting process of the proposed motorway. Preliminary environmental studies (“Zamer”) were disclosed in each affected municipality and the public were invited to review and comment on them. The EIA’s were completed detailing the analysis of the potential environmental impacts of the motorway. These were published both on the Ministry of Environment’s website and at the local municipality offices and local public hearings were also held. Also as part of the Zoning Permit (DUR) and Building Permit (DSP) processes, each Permit application is disclosed to the public for comment and the final Permits are made publicly available.

At the request of the EBRD, an overarching non-technical summary (NTS) of the environmental and social issues associated with the project has been prepared and disclosed to public by the MOT for review and comments. The NTS includes also details on the project related public consultation and provides contact details for any Project related queries.

The Environmental Impact Assessments and the Non Technical Summary are available for this project on the Ministry of Transport (MOT) PPP website - www.telecom.gov.sk (PPP Projects section).

A Public Consultation and Disclosure Plan (“PCDP”), including a process for the management of grievances will be implemented by the Concessionaire during the construction and operation of the project as an Environmental and Social Action Plan (ESAP) requirement.

Monitoring

An environmental and social monitoring plan satisfactory to the EBRD will need to be developed by the Concessionaire and implemented throughout the project. The EBRD will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing periodic Environmental and Social Reports prepared by the Concessionaire as well as through monitoring visits and external supervision reviews.

Technical Cooperation

None.

Company Contact

Mrs Fruzsina BIRO, CEO
or Mr Olivier CHAMBON, CFO
Slovenské dial’nice, a.s.
Röntgenova 26
851 01 Bratislava
Slovak Republic

 

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