Montenegro:ZPCg Rolling Stock Renewal Project

Location:

Montenegro

Project number:

41899

Business sector:

Transport

Notice type:

Public

Environmental category:

B

Approval date:

26 Oct 2010

Status:

Signed

PSD disclosed:

13 Aug 2010

Translated version of this PSD: Montenegrin
 

Project Description

The EBRD is considering providing funds to finance priority upgrade of the passenger rail fleet operated by ZPCG – a national passenger rail operator in Montenegro.

In its current condition, the Montenegro passenger rail service is not sustainable beyond the short term since its ageing fleet is in a serous state of disrepair. The quality of service being provided has declined substantially in recent years, and as a result, passenger levels have fallen significantly. As the Government’s policy is that Montenegro should have a modern, viable passenger rail operator, the Government has requested EBRD support for the proposed priority upgrade of the passenger rail fleet.

Transition Impact

The proposed Project is expected to result in transition impact in the following areas:

  1. Preparation and development of a Public Service Obligation (“PSO”) contract, which ensures the transparent and targeted budgetary support for rail operators running loss making passenger services while incentivising ZPCG to improve commercial management of its operations.
  2. Introduction of adequate business planning and budgeting process to provide for adequate resource and timing allocation for the implementation of the adopted strategy for the rail infrastructure.
  3. The upgrade of Montenegro’s passenger rail fleet with the emphasis on efficient use of the rolling stock and energy saving benefits of the project.

The Client

The Montenegro Railway Passenger Company (ZPCG), majority state owned Railways Passenger Company

EBRD Finance

Up to EUR 13.55 million sovereign guaranteed

Project Cost

EUR 16 million

Environmental Impact

The Project has been categorised “B” as per the 2008 Environmental and Social Policy. It will entail significant Health and Safety benefits, as it will contribute to the phasing out of obsolete equipment (a major accident occurred in 2006).

Due diligence was undertaken by the Bank both in respect of the particular activities to be financed by the Bank and at corporate level. Main findings are the following:

  • Equipment to be purchased under the Project will comply with all applicable EU standards, including those pertaining to noise protection
  • The Company is close to obtaining certification of an integrated quality / environment / Health and Safety management system in line with the requirements of ISO 14000
  • An Environmental and Social Action Plan (ESAP) is being drafted to sanction the environmental and social commitments of the Company and its implementation will be monitored by the Bank.

Technical Cooperation

It is envisaged that the technical cooperation support will provide assistance with the following:

1) Procurement and implementation support; and

2) Institutional Strengthening (Business planning and preparation of the PSO contract).

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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 (pcm@ebrd.com) 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.

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