Kragujevac Infrastructure Upgrade Project



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Target board date:

16 Dec 2015



PSD disclosed:

24 Aug 2015

Translated version ofn this PSD: Serbian

Project Description

The EBRD is providing a loan of up to EUR 15 million to the City of Kragujevac (the “City”) for long-term financing of urban transport infrastructure and procurement of waste collection trucks.

The loan will be split in two tranches. Tranche 1 of EUR 10 million comprises financing of new waste collection trucks of EUR 2.5 million (Component 1) and financing of road construction and refurbishment of EUR 7.5 million (Component 2). Tranche 2 will be used to finance construction of a new City bus terminal in an amount of EUR 5 million (Component 3).

Transition Impact

The transition impact potential of the Project arises from:

  • Increased private sector participation (“PSP”) - the new central bus terminal will be designed in a way to include commercial and retail space. The City will contract a private retail company which will be responsible for leasing of the commercial space and possibly for maintaining the terminal (performance-based management contract; full or partial lease).
  • Frameworks for Markets - the project will help the City and City Traffic Agency (the “Agency”) to improve management through the introduction of a Financial and Operational Performance Improvement Programme ("FOPIP") to (i) support monitoring and evaluation of the PSP contract for bus terminal; and (ii) improve the contractual arrangement for bus terminal operations and for urban bus route operators.
  • Skills Transfer - Operation of the bus terminal will likely be a new task for the Agency, and the FOPIP will provide substantial training for key staff in the City and Agency, enabling commercial skill transfer and improvement of operational performance, with a focus on financial planning, operational management, monitoring and evaluation of bus franchises and ticketing and fare collection methods. 
  • Introduction of an advanced form of maintenance contracts – the Project will aim for introduction of Performance-based Management and Maintenance of Roads contract (“PMMR”) for the City’s road network, to allow improvement of quality of the service provided.   

The Client

City of Kragujevac (“Kragujevac” or the “City”)

EBRD Finance

Senior loan to the City in an amount of up to EUR 15 million

Project Cost

Up to EUR 19.2 million

Environmental and social categorisation, impact, and mitigation

Categorised B (2014 ESP). The Project will improve traffic safety and transportation accessibility for more than 180,000 inhabitants in the City of Kragujevac. Any adverse impacts are likely to be site-specific and readily identified and mitigated.

The Environmental and Social Due Diligence for this project will include an environmental and social audit of the Company’s current management systems, facilities and operations as well as an environmental and social assessment of the proposed project components.

This section will be updated upon completion of the ESDD.

Technical Cooperation


  1. Technical and Environmental and Social due diligence for Component 1. The estimated cost of this assignment is up to EUR 37,000. 
  2. Technical project scoping and environmental and social due diligence for Components 2 and 3; including, a review existing designs and specifications for Component 2 and scoping for Component 3 to define the concept layout of the proposed bus terminal; assessment of conditions of the two site options and costs; and, identification of private sector participation options. The estimated cost of this assignment is up to EUR 210,000.
  3. Procurement support for Components 1 and 2, including support in the preparation of tender documents and during the tendering process. The estimated cost of this assignment is up to EUR 75,000.


  1. Construction supervision for investments under Component 2. The estimated cost of the assignment is EUR 350,000.  
  2. Project Implementation Support for Component 3 to comprise: (i) preparation and works tendering, including the detailed design of the bus terminal, preparation of tender documents and procurement assistance, and (ii) construction supervision. The estimated cost of this assignment is up to EUR 290,000.
  3. Financial and Operational Performance Improvement Programme (FOPIP) for Component 3 to support the City and City Traffic Agency in revising pricing policy, improving operational and accounting practices and increasing commercial opportunities. The estimated cost of this assignment is up to EUR 200,000.


Vladimir Maksimovic

Member of City Council in charge of environmental protection and sustainable development


Phone: +381 34 334 030

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer ( is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.