The EBRD is considering financing the project consisting of (i) the reconstruction of approximately 16 km of tracks and related infrastructure in the city of Odessa. It will include: ii) the purchase of new trams and refurbishment of existing trams; iii) the modernisation of the tram depot; and iv) the establishment of regulatory relationship between the City and the public transport companies.
The Transition Impact of the Project will come from the following components:
Commercialization: Through a comprehensive multi-year Public Service Contract (PSC) the Project will implement a business model based on international best-practice, whereby the client City pays for services from its transport companies based on price per kilometre operated. This will both: (i) increase operational efficiency of resource allocation and use; (ii) contribute to improved City regulation and budgetary planning for support payments to the Company; and (iii) set in place objective, quantifiable performance monitoring by the City.
Bus Sector Regulatory Reform: Due to the prevalence of the mini-bus phenomenon, the project will design an institutional and regulatory framework for the introduction of competitive route tendering for bus services. The new framework and tenders will have the dual objective of: i) produce a consolidation of the disparate mini-buses into bona fide public transport concessionaire companies, with minimum bus size, emission standards, and service quality as stipulated in the PSC to be signed with the winning bus companies; and ii) eliminate the inefficient operational overlap with the Company.
- Demonstration effect: the Project will have a strong demonstration effect, as the mini-bus consolidation process should produce one of the first examples of transforming the mini-bus industry into a consolidated, economically optimized public transport service operated by the private sector in the region. This model, once it is refined, and given the political will of reform-minded municipal leadership, could be replicated throughout Ukraine and Russia.
OdesaMiskElectroTrans , City of Odesa
The total project cost is up to EUR 72.2 million. EBRD intends to finance up to 50% of the project cost and the balance is expected to be financed by the European Investment Bank.
Up to EUR 72.2 million.
Categorised B/1 (2003). An environmental analysis of the proposed replacement of tram tracks and modernisation of tram depots, and an Environmental, Health and Safety (EHS) Audit of the Company practices and existing facilities were conducted by independent consultants in September 2009. The environmental analysis of the proposed investment identified that the project will bring about positive impacts in terms of providing reliable and environmentally friendly public transport as an alternative to unregulated private minivans and taxis. There will be temporary negative impacts, such as air emissions, increased noise and vibration levels and generation of construction of waste during the construction phase, which could be addressed through implementation of required mitigation measures. There might be some community safety issues as some tram tracks intersect many gateways from individual plants and facilities.
An Environmental and Social Action Plan, containing required mitigation measures to bring the Company in compliance with the Ukrainian regulations and with environmental and social requirements of the Bank has been developed by the consultants and will need to be approved and implemented by the Company.
The Plan will address the following environmental and social aspects of Company’s operations:
1. Establishment of an Environmental Management System;
2. Implementation of monitoring of air emissions, noise levels and soil contamination;
3. Improved waste management;
1.Development of a grievance mechanism for employees and passengers;
2. Development of a social programme for various passenger groups.
A total of EUR 1.4 million of TC assistance is required to prepare, design and implement the Project. It will include: technical and environmental scoping and review of tram investments, IFRS Audit of the Company, public transport regulatory improvement for the city, strengthening of environmental protection capability, procurement, implementation support and contract supervision.
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Tel: +44 20 7338 7168
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