GrCF-Energy Efficient Refurbishment of Zenica Hospital

Location:

Bosnia and Herzegovina

Project number:

49431

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

09 Jan 2018

Status:

Board Approved

PSD disclosed:

13 Jun 2018

Translated version of this PSD: Bosnian

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 envisages 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.

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 proposed 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.

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

Strong Good

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

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 asbestoscement 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

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

 

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