Odessa Trolleybus Project

Location:

Ukraine

Project number:

47902

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

14 Oct 2015

Status:

Repaying

PSD disclosed:

13 Aug 2015

Translated version of this PSD: Ukrainian

Project Description

The EBRD is providing up to € 8 million loan to Communal Enterprise “Odesmiskelectrotrans” (the “Company”) to finance the acquisition of up to 45 new trolleybuses and related maintenance equipment. The project aims at improving access to clean urban transport, improving capacity and efficiency of public transport services and providing an overall balanced approach to the sustainable urban transport infrastructure development in the City of Odessa (the “City”).

Transition Impact

Framework for Markets: Transition impact will derive from establishing contractual arrangements in the form of a Public Service Contract (“PSC”) between the Company and the City. The PSC will enable service support payments based on a price per vehicle-kilometre or passenger-kilometre and the implementation of an agreed service plan. In addition, new route tendering rules will be adopted by the City. Tariff reform will be discussed with the Company and the City to target improvements in financial sustainability from fare revenues.

Demonstration of Successful Restructuring: the Company is expected to implement restructuring measures supported by TC-financed Corporate Development Programme. These measures are supposed to result in improvements in financial management; investment planning, organisational efficiency, customer relations management and most importantly cost reductions and improved financial sustainability.

Setting standards for corporate governance and business conduct: the Company will improve its disclosure standards, disclosing information on financial and operating performance, including, inter alia, publication on the website of annual IFRS financials, investment summary and performance summary against targets specified in the PSC.

The Client

Communal Enterprise “Odesmiskelectrotrans”, a public transport operator in the City of Odessa, wholly owned by the City of Odessa.

EBRD Finance

€ 8 million EBRD loan to the Company secured by a municipal guarantee of the City.

Project Cost

€ 8.4 million
 

Environmental and social categorisation, impact, and mitigation
 

Categorised B (2014 ESP). The project is expected to bring substantial environmental and public health benefits through modernisation of the trolleybus fleet, thus improving air quality in the municipality of Odessa, improve fuel efficiency, contribute to improving accessibility and mobility for all user groups and improve overall quality, safety and efficiency of urban transportation. The Environmental and Social Due Diligence (“ESDD”) to structure the project in compliance with EBRD PRs will be carried out as part of the Feasibility Study. This will include an Environmental and Social (“E&S”) audit and analysis, development of an Environmental and Social Action Plan and a gender responsive Stakeholder Engagement Plan.

Technical Cooperation

Pre-signing:

  • TC 1: Environmental and Social Due Diligence of the project. The estimated total cost for the assignment is up to € 15,000, proposed to be financed by the Bank’s own resources.
  • TC 2: Technical and Financial Due Diligence of the project. The estimated total cost for the assignment is up to € 35,000, proposed to be financed by the Bank’s own resources.

 

Post-signing:

  • TC 3: Project Implementation Support. Up to € 50,000, proposed to be financed by an international donor or the EBRD Shareholder Special Fund (“SSF”).
  • TC 4: Corporate Development and Stakeholder Participation Programme. The estimated total cost for the assignment is up to € 150,000, proposed to be financed by an international donor or the SSF.
  • TC 5: Strengthening of the Public Transport Local Regulatory Framework including the implementation of a PSC. The estimated total cost for the assignment is up to € 150,000, proposed to be financed by an international donor or the SSF.

 

Company Contact

Sergei Melnik, Deputy Head of Economic Development Department, Odessa City Administration

Tel: +38 048 7222270

Fax: +38048 7054601

E-mail: dep.economy.omr@gmail.com

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

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