Translated version of this PSD: Romanian
The EBRD is considering providing a loan of up to RON 100 million to Galati Municipality (the “Municipality” or the “City”) to finance key investments in the urban transport sector and related infrastructure including street rehabilitation, public transport optimisation through advanced traffic management, as well as support for the introduction of a new automated fare collection (“AFC”) system (“Project”).
Transition goals of the operation include the following:
Framework for markets
Improving road management and maintenance by using performance-based contracting. Better value for money will be achieved by integrating multi-year maintenance activities into the urban road maintenance sector.
Traffic Management Plan
Following an optimisation of the public transport route network to achieve operating cost savings, the new adaptive-controlled traffic management system focusing on public transport prioritisation will further enhance the attractiveness of the service for users.
Private sector participation
A new integrated electronic ticketing system, to be carried out on an out-sourced basis, will be designed technically and prepared for tender using the Bank’s technical cooperation funds. The system is expected to be launched as a Design-Build-Operate-Maintain (“DBOM”) contract, with delivery and operational risk transferred to the private sector.
Up to RON 100 million senior loan to the City.
The total cost of the project has been estimated at RON 125 million.
The project was screened B requiring environmental and social analysis of the proposed project and a review of the Client's and contractors' environmental, health, safety and human resources management systems.
The proposed project will also contribute to improving public transport reliability, safety and efficiency, will reduce congestion, and help maintain the market share of public transport, with associated air quality benefits. Environmental investigations, which are currently underway, will identify any further potential environmental impacts associated with the environmental and social action plan (ESAP).
The environmental and social due diligence for the project, which is ongoing, 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) environmental and social 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 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 project summary document will be updated when the results of due diligence are known.
The initial project mobilised several technical cooperation components:
Technical and environmental due diligence (EUR 61,000) to include
(i) a technical review of the existing feasibility studies;
(ii) support for drafting functional specifications of the works to be tendered and support for the tendering process;
(iii) preparation of a tender strategy for the proposed works; and
(iv) an environmental analysis of the Project. Funded by the Bank’s own resources.
- Financial due diligence (EUR 10,000) to provide an economic review of proposed investments (“EIRR”). Funded by the Bank’s own resources.
- Supervision Engineer and Implementation Support for streets rehabilitation and public lighting improvement works. (EUR 300,000), to be financed from the loan resources.
- Support for AFC ticketing to cover the design and support for the tendering process, and the start-up phase of the contract. (EUR 200,000), to be financed by an international donor or the EBRD Shareholder Special Fund.
For business opportunities or procurement, contact the client company.
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