GrCF-Energy Efficient Refurbishment of Zenica Hospital

Location:

Bosnia and Herzegovina

Project number:

49431

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

09 Jan 2018

Status:

Signed

PSD disclosed:

13 Jun 2018

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The Project is focused on the energy efficient refurbishment of the Zenica Cantonal Hospital ("the Hospital") fully owned by Zenica-Doboj Canton ("the Canton"). 

For this purpose, the EBRD provision of a sovereign loan of EUR 10.0 million ("the Loan") to be on-lent via the Federation of Bosnia and Herzegovina ("FBiH") to the Canton. In addition, the Project will be co-financed by a Regional Energy Efficiency Programme ("REEP") investment grant of EUR 1.0 million, and will benefit from Technical Cooperation support of EUR 0.7 million.

EBRD's financing will be used to finance the most urgent infrastructure needs of the hospital: energy efficient refurbishment of existing facilities, increase of the hospital's usable area through construction of an energy efficient extension as well as solving the problem of periodic flooding of the basement. Overall, the Project's investments will have large scale environmental benefits and will considerably increase thermal comfort and quality of service for the patients of the hospital, estimated at 310,000 people annually.

The operation is a sub-project under the Green Cities Framework ("GrCF") which is established to provide loans to governments, municipalities, municipal owned and private companies providing municipal services. The over-arching aim of the GrCF is to serve as a sector-wide catalyst for addressing environmental challenges at the Municipal/City level.  This is underpinned through the implementation of a Green Cities Action Plan ("GCAP"), which is a strategic document whereby environmental challenges are benchmarked, priority areas for environmental improvements identified, environmental objectives defined and indicative investments determined.

The relative loan agreement and project agreement were respectively signed in June 2018 and July 2018.

Project Objectives

The main purpose of the Project is to increase energy efficiency of the hospital, reduce CO2 emissions and other associated environmental impacts. The Project also includes a climate adaptation component through the introduction of anti-flooding measures. The envisaged investment has significant environmental and health benefits and will considerably increase the quality and efficiency of services provided by the hospital.

Transition Impact

ETI score: 80

The Bank's involvement in the Project carries transition impact potential both in terms of its environmental impact (through the investment itself and the preparation and implementation of the GCAP) and enhanced governance of the Canton and the Hospital through the associated Technical Cooperation.

Client Information

BOSNIA AND HERZEGOVINA SOVEREIGN

EBRD Finance Summary

EUR 10,000,000.00

Total Project Cost

EUR 11,000,000.00

Additionality

The additionality sources are: (i) the financing structure; (ii) the promotion of green policies and investments through the GCAP process and (iii) standard-setting: key covenants related to procurement, environment and social protection as well as the implementation of a GCAP.

Environmental and Social Summary

Categorised B (2014 ESP). This Project will have a number of significant benefits including improved energy efficiency, reduced emissions from the fuel switch to gas, reduced flooding due to improved drainage and an overall improvement in the fabric of the buildings. The hospital in Zenica was built in 1959 and has capacity for 900 patients. It currently employs around 1600 staff. The buildings are in poor state of repair with leaking roofs, inadequate insulation and out-dated electrical, heating and drainage systems. Environmental and social due diligence comprised of an audit carried out by independent consultants. This identified a number of issues including the need to improve storage and disposal of hazardous and non-hazardous wastes. Much of the existing roofing has asbestos-cement tiles and these will need to be removed and disposed of by competent contractors. An Environmental and Social Action Plan ("ESAP") has been agreed to address these issues and support implementation of the Project and management of the Environmental Health and Safety aspects of the Hospital in line with the Bank's Performance Requirements. EBRD will monitor the Project through annual environmental and social reports provided by the Client.

Technical Cooperation and Grant Financing

Technical Cooperation for this operation will be provided to assist with: (i) Project Preparation support for the Canton and the hospital (Preparation and Update of the Feasibility Study, Environmental Study and Procurement Support), to be financed by the REEP, (ii) Development of the GCAP for the City of Zenica, to be financed by the Austrian Government and (iii) Development of a Credit Enhancement Programme for the Canton, to be financed by the SSF or an international donor.

Company Contact Information

Samir Bijedic, Cantonal Hospital Zenica
sektor-tehnika@kbze.ba
+387 32 447 059
+387 32 226 576
http://www.kbze.ba/
Crkvice 67, 72000 Zenica, BiH

PSD last updated

03 Sep 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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Tel: +44 20 7338 6794
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General enquiries

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 compliance@ebrd.com. 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 how to submit a Request for review through our confidential online form, by emailmail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.

 

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