A EUR 9.2 million loan extension to the City of Craiova to cover the increased cost (including increased cost of labour, as imposed by the law, higher cost of construction materials, etc.) of the initial investment envisaging: (i) rehabilitation of 14 public buildings and (ii) modernisation of the public transport fleet through the acquisition of Euro-6 buses. This loan extension finances Craiova Urban Rehabilitation which is part of the EBRD's Green Cities Framework 2, Window 2, and was approved by the Bank on 13 November 2018 and currently under implementation.
The project is expected to result in significant energy and CO2 savings. The investment will improve the environment and the living standards of the community.
ETI score: 70
The project's transition impact remains unchanged from the original proposal and it targets "Green" and "Well-Governed" qualities through: 1) significant energy and CO2 savings in the city's buildings and urban transport fleet, and 2) the development and implementation of a specific GCAP for the City.
CITY OF CRAIOVA
The Municipality of Craiova is one of the largest cities in Romania with a population of around 400,000 inhabitants.
EBRD Finance Summary
Total Project Cost
The Bank is additional because of its:
- Financing structure: The Bank will provide necessary long-term financing that is not readily available from commercial banks.
- Standard-setting: helping projects and clients achieve higher standard: The EBRD will help the city achieve higher standards by applying EBRD procurement and environmental standards.
- Knowledge, innovation and capacity building: The EBRD provides knowledge and capabilities material to respond to the client's timely realisation of the project's objectives.
Environmental and Social Summary
Categorised B (2014 ESP). The loan extension will not involve new investment components to the original project, which was approved under the 2014 Environmental and Social Policy as part of the GrCF2 W2. The proposed use of proceeds is therefore not associated with any new environmental or social risks or impacts. The Environmental and Social Due Diligence for the original project indicated that the Municipality of Craiova is well managed, and has the internal capacity to operate in line with the Performance Requirements (PRs), although a few operational and organisational issues were identified that require improvements which have been included in the Environmental and Social Action Plan (ESAP), such as improvement of the Client's environmental and health and safety management systems, supervision of the construction contractor, and stakeholder engagement. The ESAP and Stakeholder Engagement Plan (SEP) were agreed.
This loan extension does not require additional monitoring or reporting above that already in place, nor are additional ESAP items required. The client is required to continue ensuring that the project complies with the PRs. The Bank will continue monitoring implementation of the ESAP through annual reports from the Client and site visits if deemed necessary.
Technical Cooperation and Grant Financing
No additional Technical Cooperation (TC) will be granted for the Loan Extension. However, the following TC services have been provided for the project:
Pre-signing TC for technical, economic and environmental due diligence related to the acquisition of buses and buildings rehabilitation components, financed by the Bank and by the Global Environmental Fund.
Post-signing TC for GCAP development and project implementation support, financed by the Austria's CREATE Funds and by Global Environmental Fund ("GEF") .
Company Contact Information
City Hall of Craiova City, Str. A.I Cuza, nr.7, Craiova, 200585 Romania
PSD last updated
02 Jul 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to firstname.lastname@example.org. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.