GrCF - Balti Trolleybus

Location:

Moldova

Project number:

50503

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

19 Mar 2019

Status:

Signed

PSD disclosed:

09 Apr 2019

Translated version of this PSD: Romanian

Project Description

A EUR 2.5 million loan to the Municipal Enterprise "Balti Trolleybus Department" or Company.  The loan will support the expansion and improvement of the existing trolleybus network of the city of Balti, or the City. It will finance the acquisition of circa 10 new low floor trolleybuses with autonomous course (opportunity charging batteries) to run on new, extended routes of the trolleybus network. The financing will also help the Company to acquire technical maintenance vehicles and rehabilitate old power supply infrastructure.

Project Objectives

The Project promotes resource efficiency by expansion of energy-efficient trolleybus service and rehabilitation the old power supply infrastructure. The Project is complemented by a technical cooperation (TC) package, which includes project implementation support, the development of a sustainable public transport plan and preparation of Green City Action Plan (GCAP) for the City of Balti.

Transition Impact

Strong Good

The Project is under the EBRD's Green Cities Framework (GrCF). The GrCF and each sub-project within the Framework will promote significant environmental improvements and support the "green" transition quality through the development and implementation of GCAPs for the respective cities. The Framework will also pursue transition impact objectives related to the "well-governed" transition quality through the support of better institutional capacity for planning, regulating and monitoring environmental activities and through better contractual, financial and operational clarity in the relevant sectors.

The transition qualities promoted by the Project are consistent with the GrCF. The "green" quality is promoted through significant reduction in emissions of CO2 and increased energy efficiency. The "well-governed" quality is promoted through the: (i) the development of a GCAP, (ii) the revision of the Public Service Contract ("PSC"), and (iii) the development of a Sustainable Public Transport Plan.

Client Information

TROLLEYBUS OF THE CITY OF BALTI

Municipal Enterprise "Balti Trolleybus Department", a trolleybus company wholly owned by the city of Balti. Balti is the country's second largest city in terms of area and economic importance, and is the third largest in terms of population (145,000 inhabitants).

EBRD Finance Summary

EUR 2,500,000.00

The provision of a loan of up to EUR 2.5 million to the company. The loan will be guaranteed by the city.

Total Project Cost

EUR 3,700,000.00

The total project cost is EUR 3.7 million including up to EUR 1.2 million investment grant co-financing from an international donor.

Environmental and Social Summary

Categorised B (ESP 2014). The Project will bring substantial environmental and public health benefits through modernisation of the trolleybus fleet, contributing to improving air quality in the City, increasing the accessibility and mobility for all user groups and improving overall quality, safety and efficiency of urban transportation. Any adverse impacts will be site specific and addressed through appropriate mitigation measures.

Environmental and social due diligence (ESDD) for the project has been carried out internally. It included an environmental and social analysis of the proposed investment, a review of environmental, social, health and safety policies and procedures as well as the capacity of the company to manage risks associated with the proposed Project in line with the EBRD's Performance Requirements (PRs).  The ESDD identified that the company has the institutional capacity to implement the project in compliance with the Bank's performance requiremens, and is compliant with local legislation. However it was noted that the Company needs to continuously improve their maintenance workshops and sanitary and hygienic facilities for the workers and ensure effective operation of the washing station and treatment facilities. The Project implementation is limited to the urban area within the boundaries of the existing urban development and no sensitive ecological receptors or protected zones will be affected. In addition, the Project will not have significant adverse social impacts to local communities or other project affected parties, nor will the project require the acquisition of land or result in involuntary resettlement or economic displacement.

An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to address the areas for improvement identified during the ESDD and carry out the necessary mitigation measures which will enable the company to comply with national regulations and the Bank's performance requirements. The ESAP covers development and implementation of the Environmental Management and Occupational Health & Safety Management Systems including improvement of sanitary and hygienic conditions for the company employees. The environmental and social performance of the project and implementation of the ESAP will be monitored through annual environmental and social (E&S) reports and site visits when deemed necessary. The project will be monitored through annual E&S reports.

Technical Cooperation

The below TC packages have been envisaged under this project:

  • TC1: Project Implementation Support to the Company. EUR 500,000, to be funded by an international donor or the EBRD Shareholder Special Fund.
  • TC2: Development of a Sustainable Public Transport (SPT) Plan for the City. EUR 285,000, to be funded byan international donor or the EBRD Shareholder Special Fund.
  • TC3: Development of a GCAP for the City. EUR 300,000, to be funded by an international donor or the EBRD Shareholder Special Fund.

Company Contact Information

Serghei Avramenco
director.dirtrol@gmail.com
+373 231 74982
+373 231 70389
I.M. "Directia de Troleibuze din Balti", 132 Decebal Street, MD-3100 Balti, Republic of Moldova

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