D4 Highway/R7 Expressway

Location:

Slovak Republic

Project number:

47107

Business sector:

Transport

Notice type:

Private

Environmental category:

A

Status:

Cancelled

PSD disclosed:

06 Nov 2015

Translated version of this PSD: Slovak

Project Description

The Slovak government has recently undertaken to construct two new sections of the D4 Highway, forming part of the Trans-European Transport Network ("TEN-T") and three new sections of the R7 Expressway to ease access to Bratislava, the Slovak capital, improving a key road corridor. The project is being procured under a public private partnership model, whereby the Slovak government is planning to sign a concession agreement with a privately owned concessionaire, which will have the responsibility to finance, construct, operate and maintain the project roads. EBRD is planning to be a part of lenders group to provide long term financing for the concessionaire

Project Objectives

The key objectives of the project are to reduce traffic congestion in the Slovak capital, Bratislava, speed up access to motorway networks (D4, D1, D2) and partially reduce traffic on the road network in the catchment areas of Bratislava. The Project also includes sections of the R7 expressway, whose construction is expected to add to the radial roads to relieve the drive-through sections of the existing radial roads in highly urbanized areas, diversifying the available routes for traffic to and from Austria and Hungary.

Transition Impact

The proposed project is the second motorway construction project in Slovakia to be financed under a public private partnership scheme. The transition impact for the project is expected to come mainly from

(i) a significant demonstration effect by promoting continued private sector involvement in the road sector through the participation in the financing of this PPP and;

(ii) a regional demonstration effect associated with the replication of the concession programme by governments in neighbouring countries to continue developing their plans for similar PPP programmes.

Client Information

CONCESSIONAIRE PROJECTCO

The Concessionaire for the project is expected to be selected in late November 2015.

EBRD Finance Summary

EUR 150,000,000.00 loan.

Total Project Cost

EUR 1,400,000,000.00

Environmental and Social Summary

Categorised A (ESP 2014). The construction of four-lane roads has the potential to result in significant adverse environmental and social impacts. The Project involves the design, construction, operation and maintenance of two dual-lane sections of the D4 highway (Sections 1 and 2), three sections of the radial R7 expressway (Sections 3, 4 and 5) with a total length of 59 km, with each section having a separate Environmental Impact Assessment (EIA). The relocation of 4.8 km of local roads (Sections 6 and 7) did not require EIA screening as they are less than 5 km long. Alternative route alignments were considered and were included in the public consultation during the EIA process.

Environmental and social due diligence (ESDD), undertaken by an independent consultant included a review of the EIAs and other supporting project documentation plus site visits. As the Concessionaire has not been selected environmental and social requirements included in the draft Concession Agreement were also reviewed. The ESDD findings concluded that the EIA process, combined with the studies and documentation required for the Zoning Permit and Building Permits required for the detailed design was considered compliant with national requirements and the EU EIA Directive. Gaps identified with the Banks PRs were largely related to social impacts, health and safety, land acquisition, road safety, visual and cumulative impacts of the combined projects.

A disclosure package to address some of the main gaps comprising the overarching Non-Technical Summary covering all the project road components, Environmental and Social Action Plan (ESAP), Stakeholder Engagement Plan (SEP), and Land Acquisition and Resettlement Framework (LARF), as well as the original Environmental Impact Assessments (EIA) for the new road sections and proposals for biodiversity compensatory measures have been provided to structure the project to meet the Banks PRs.

A draft ESAP has been prepared and will need to be agreed with the selected Concessionaire. Currently the ESAP includes requirements for the implementation of the LARF and Road Safety Audits implementation, pre-construction walk over surveys by experienced ecologists, preparation of cumulative impact assessment addressing the potential combined impacts of all of the project sections, development of a design change management procedure, development of an Employment Policy Document to ensure compliance with EBRD PR2 and provision of Occupational Health and Safety (OHS) Management System, to ensure compliance with EBRD PR4 together with the implementation and regular update the SEP.

The Bank will evaluate the Project's environmental and social performance in accordance with the Bank's PRs through review of reports and undertake periodic monitoring visits. Details of monitoring and reporting requirements will need to be agreed with the Concessionaire.
http://www.obchvatbratislavy.sk/en/dokumenty

There is an Environmental and Social Impact Assessment available for this project

Technical Cooperation

None.

Company Contact Information

Concessionaire for the project is expected to be selected in late November 2015 business opportunities

Business opportunities

For business opportunities or procurement, contact the client company.

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Text of the PIP

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