Galati Urban Infrastructure Rehabilitation



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

15 Oct 2014



PSD disclosed:

03 Jun 2014

Translated version of this PSD: Romanian

Project Description

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 Impact

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.

The Client

Galati Municipality.

EBRD Finance

Up to RON 100 million senior loan to the City.

Project Cost

The total cost of the project has been estimated at RON 125 million.

Environmental Impact

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.

Technical Cooperation

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.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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

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