Osh Public Transport Project

Location:

Kyrgyz Republic

Project number:

44243

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

15 Oct 2014

Status:

Repaying

PSD disclosed:

06 Mar 2014

Translated version of this PSD: Russian

Project Description

The EBRD is considering supporting improvements of the public transport system in Osh. The EBRD would extend a sovereign loan of up to EUR 5.7 million to the Kyrgyz Republic for on-lending to the City of Osh for the benefit of Osh Auto transport Enterprise (the company). The project is proposed to be co-financed with a EUR 3.1 million grant from an international donor.

The proceeds of the loan and the grant will be used for the purchase of 20 new low floor trolleybuses, power supply infrastructure components and maintenance equipment for the trolleybus system as well as the acquisition of 24 high capacity buses.

To measure the success of the project, the Bank will monitor the following indicators before and after project implementation: (1) Total number of urban transport passengers to increase from 44,000 per day to 82,000 after project implementation, and (2) Annual reduction in tonnes of CO2 equivalent thanks to improved public transport operations.

Transition Impact

The project will have the following transition impact objectives:

  • It will introduce a transparent, multi-year contractual framework between the City and the company in the form of a gross cost Public Service Contract (PSC). This approach will increase transparency and accountability in the relationship between the City and the company.
  • The Project will also have a positive demonstration effect through corporate development and improved operational and financial performance. It will serve as a model for other cities in the region who seek introducing reforms in the provision of urban transport services and for the municipal infrastructure sector more generally.
  • The project will also improve the company’s management and operational performance through a corporate development programme. In addition, the project will improve the financial transparency of the company with the introduction of financial reporting in accordance with the International Financial Reporting Standards (IFRS), and annual financial, environmental, social, health and safety reporting. Furthermore, procurement standards will be improved through the application of the Bank’s Procurement Policies and Rules.
  • Moreover, investment in new trolleybuses/buses will improve the company’s energy efficiency through operating a more energy efficient fleet, which has been estimated to reduce the emission of CO2 by 3,400 tonnes per year.

The Client

The loan is made to the Kyrgyz Republic, to be on-lent to the City of Osh for the benefit of the Osh Municipal Auto-transport Enterprise, a municipal enterprise providing public transport services in the City of Osh.

EBRD Finance

EUR 5.7 million to the Kyrgyz Republic.

Project Cost

EUR 9.6 million.

Environmental Impact

The potential adverse environmental and social impacts associated with purchase of 20 new trolleybuses, rehabilitation of power supply infrastructure, and supply of main maintenance equipment are expected to be site-specific and can readily be identified and addressed through mitigation measures. Therefore, the project has been categorised B.

The project will result in improved efficiency and quality of transport services. The environmental and social due diligence is currently underway and involves a review of the management systems and activities of the cCompany, an audit of the depots and maintenance facilities to be used by the new trolleybus fleet, and an environmental and social analysis of the proposed investment programme. An ESAP will be developed to address any issues identified during the appraisal.

This PSD will be updated when the results of due diligence are known.

Technical Cooperation

The following technical co-operation (“TC”) assignments are envisaged as part of this project:

Pre-signing

  • Technical and financial due diligence. EUR 249,980 financed by the Government of Czech Republic;
  • Environmental and social due diligence. EUR 24,200 financed by the Bank’s own resources;
  • IFRS accounts restatement for the Company. USD 20,420 (~EUR 14,860) financed by the Bank’s own resources.

Post-signing

  • Project Implementation Support to the Company to: (i) advise on procurement, (ii) assist with tendering and contract administration, (iii) assist with overall project implementation and administration of the EBRD Loan. EUR 300,000 to be financed by the EBRD Shareholder Special Fund;
  • Corporate Development Programme to the Company will include: (i) preparation of a long-term business and marketing plan, (ii) support with the implementation of a Public Service Contract, (iii) development of fleet and infrastructure maintenance and repair programmes, and (iv) prepare and assist with launching of formal ticketing system. EUR 250,000 to be financed by the EBRD Shareholder Special Fund.
 

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.