A sovereign guaranteed loan of up to USD 5.2 million to Dushanbe State Communal Unitary Trolleybus Company (the "Company" or "Client"), wholly owned by the City of Dushanbe (the "City"), to rehabilitate trolleybus infrastructure in the City (the "Project"). The loan will have two tranches: Tranche I (committed) of USD 2.6 million and Tranche II (uncommitted) of USD 2.6 million. The proposed investment is expected to be co-financed by a capital grant from an international donor or EBRD Shareholders' Special Fund ("SSF") in the amount of up to USD 2.8 million (under two Tranches of USD 1.4 each). The Project is considered as an extension of the original project signed by the Bank in 2010, which included a USD 3.6 million EBRD loan and a USD 3.6 million capital grant from SSF to finance rehabilitation of trolleybus infrastructure in the City (the "Original Project").
The Project will help the Company rehabilitate its trolleybus infrastructure, increase energy efficiency and make the trolleybus services in the City more sustainable.
Being an extension of the Original Project the proposed Project will be based on the same transition objectives as the Original Project, namely, commercialization of the Company, signing of the Public Service Contract, implementation of the Corporate Development Plan. On top of that the Project will focus on preparation and implementation of Public Transport Development Programme.
State Communal Unitary Trolleybus Company is a company operating trolleybus infrastructure in the City of Dushanbe and wholly owned by the City.
EBRD Finance Summary
A senior loan in the amount of up to USD 5.2 million (EUR 4.52 million equivalent) to the Company.
Total Project Cost
The Project is expected to be financed from two sources: (i) EBRD loan of up to USD 5.2 million (EUR 4.52 million) under two tranches and, potentially, (ii) a capital grant of USD 2.8 million (EUR 2.43 million) under two tranches from an international donor or SSF.
Environmental and Social Summary
Categorised B. The original project was categorised B under 2008 Environmental and Social (E&S) Policy, approved in 2010 and has only become effective in March 2017. Reportedly, no construction works have been performed yet, and the contractors are preparing the design for the forthcoming rehabilitation works. Environmental and Social Due Diligence (ESDD) update in line with 2014 E&S Policy was carried out in Q2 2018 by independent consultants and involved specially tailored E&S questionnaire, site visits and meetings with the Company to perform both a supplementary E&S Assessment and a monitoring of the original project performance.
The proposed rehabilitation of trolleybus power distribution infrastructure, power substations and purchase of equipment will not have significant adverse environmental and social impacts and will bring substantial benefits due to improving quality, capacity, reliability and safety of the public transportation in Dushanbe and contribute to overall improvement of the environmental conditions in the City. E&S impacts will be mainly associated with the construction stage and can be adequately addressed through mitigation measures and good construction practice.
E&S due diligence has confirmed that Company’s internal organisational capacity and management systems on E&S matters are still weak and require further improvement. There is no dedicated role for the proactive management of environmental, health and safety (EHS) risks within the Company, and no formalised policy and management systems on EHS matters. The Company lacks clear procedures on accident and incident reporting and monitoring, electrical safety, working at height, oil and hazardous materials storage, provision and use of personal protective equipment (PPE), overall waste management, internal inspections and training. Based on the above, the Company will need to develop an EHS management system in line with ISO 14001 and OHSAS 18001, or equivalent. A specific HR policy should also be developed with a review of and a formalised commitment made on the issues of working hours and overtime, salary and bonuses, personal liability, as well as equal opportunities and non-discrimination. Company’s welfare facilities provision is lacking and needs to be improved.
A new comprehensive Environmental and Social Action Plan (ESAP) has been developed for the Company on the basis of ESDD findings to implement during the Project. The ESAP contains the identified specific actions for improving Human Resources (HR) policy and practices, environmental and health and safety management, general housekeeping, occupational health and safety conditions, contractor management as well as stakeholder engagement. Post-signing Project Implementation and Corporate Development Programme consultants will assist the Company in developing its organisational capacity to implement the ESAP and the Project in compliance with EBRD’s Performance Requirements.
Stakeholder Engagement Plan (SEP) and a Non-Technical Summary (NTS) have been updated and will be disclosed locally by the Company. The Bank will review annual E&S reports and carry out monitoring visits to the Company as and when deemed necessary.
Post-signing: (i) Public Transport Development Programme, including the revision and update of City Public Transport Strategy, development and implementation of corporate development programme and support for Automated Fare Collection development (estimated cost is EUR 500,000) (ii) Project Implementation Support, including tender support and contract supervision, assistance in ESAP implementation and annual E&S reporting to the Bank (estimated cost is EUR 250,000).
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