Translated version of this PSD: Russian
Project description and objectives
A project supporting the Khujand Trolleybus Company in order to improve public transport provision in Khujand City.
The EBRD would provide a loan of up to USD 14.0 million in two tranches to the Company. The Republic of Tajikistan would provide a sovereign guarantee. The City, as owner of the Company, would sign a Project Support Agreement with the Bank.
1) Tranche I (committed) - a loan up to USD 7.0 million to be co-financed by a capital grant of USD 3.0 million from an international donor.
2) Tranche II (uncommitted) – a loan up to USD 7.0 million to be co-financed by a capital grant of USD 3.0 million from an international donor.
The EBRD will consider an investment to facilitate implementation of the project which will address urgentpublic transport rehabilitation needs. The overall objectives of this project are:
a) Fleet renewal through introduction of new mid-size and/or large buses and reorganisation of the existing mini-buses into feeder services (operating secondary regular routes);
b) Depot rehabilitation and equipment;
c) Introduction of an integrated ticketing system covering all modes of public transport; and d) Corporate Development Programme to build operational and financial sustainability in the Company
Transition Impact of the project would be:
Frameworks for Markets: The project will strengthen the urban transport planning and regulation functions in the City, and establish a contractual arrangement between the City and the urban transport company. This will promote tariff adjustments and collection rate improvements.
- Private Ownership: Bank will explore the possibility of strengthening private sector participation in the sector either (i) by introducing a leasing scheme with private sector participation (PSP) or (ii) through part or full privatisation of the company (after operations are stabilised).
Setting Standards of Corporate Governance and Business Conduct: The associated technical cooperation (TC) will aim at (i) improving financial and operational conditions of the company; (ii) improving transparency and governance structure, including preparation and disclosure of international financial reporting standards (IFRS); and (iii) developing a business plan and environmental health and safety (EHS) reporting.
The expected transition impact rating is ‘good’.
Khujand Trolleybus Company.
Sovereign loan of up to USD 14.0 million in two tranches to the Company.
Total project cost
The total project cost is USD 21.4 million including technical cooperation.
Environmental and social categorisation, impact, and mitigation
The modernisation of the bus fleet through introduction of new buses and modernisation of the maintenance depot, introduction of the e-ticketing system will have mainly positive environmental and social impacts. The project will contribute to improving accessibility and mobility for all user groups, improve air quality in the City, achieve greater fuel efficiency and improve overall quality, safety and efficiency of urban transport. The environmental and social due diligence will include a review of the Company's existing management systems, facilities and operations paying specific attention to the maintenance depot, labour practices, including safety issues associated with the new buses and also to ensure that the specifications for the buses to be purchased under the project will meet EU requirements. The route planning will consider safety of all users, road safety and assess the potential impacts on all stakeholders, including those with disabilities and women. This will promote accessibility as one of the integral elements of sustainable urban transport systems. The due diligence will also take into account potential affordability constraints and relevant mitigation measures. An Environmental and Social Action Plan (ESAP) and a Stakeholder Engagement Plan, including a grievance mechanism, will be developed to structure the project to meet EBRD Performance Requirements.
This PSD will be updated once the ESDD is completed.
The following technical co-operation (TC) assignments are envisaged as part of this project:
Pre Loan Signing
Technical due diligence to support the scoping and structuring of the Project and an environmental and social assessment. EUR 280,000 will be provided by the Government of the Czech Republic.
- Audit and restatement of the accounts of the Company to IFRS. The cost of EUR 18,000 is to be funded by the Bank’s own resources.
Project Implementation Support. International consultants to assist the project implementation unit with tender preparation, procurement, and evaluation of tenders, contract award and administration, financial control, sub-project management and reporting. (EUR 700,000 to be financed by an international donor, the Shareholders Special Fund or the ETC Fund).
- Corporate Development and Stakeholder Participation Programme: (i) support institutional development in the form of operational improvements and financial improvements to secure sustainability of the Company; and (ii) implement a Stakeholder Participation Programme. (EUR 500,000 to be financed by an international donor or the Shareholder Special Fund).
For business opportunities or procurement, contact the client company.
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