Oskemen city public transport modernisation

Location:

Kazakhstan

Project number:

48672

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

31 Oct 2018

Status:

Signed

PSD disclosed:

20 Jun 2018

Translated version of this PSD: Russian

Project Description

The project is designed to improve public transport services in the city of Oskemen (the "City") in East Kazakhstan Oblast via procurement of up to 85 new diesel buses (the "Project") by a municipal transport assets holding company LLP Transportnaya Kompaniya Goroda Ust'-Kamenogorska (the "Company"). The procured buses will be operated on the City bus routes by consortium(s) formed between the Company and experienced private public transport operator(s).

The EBRD is planning to provide the Company with a senior loan of up to KZT 3.5 billion co-financed by a capital grant from the administrative body of the East Kazakhstan Oblast (the "Oblast Akimat") of up to KZT 1.5 billion.

Project Objectives

The Project's main objective is to improve public transport services in the City via fleet modernisation and the sector reforms.

Transition Impact

Good.

The Bank's investment aims to develop the City's public transport sector, which is currently characterised by a depleted rolling stock, financially weak transport operators and poor contractual arrangements. Underinvestment in the sector has resulted in deteriorated service standards and environmental practices, as well as sub-optimal efficiency, compounded by a lack of operational resources. The Project's transition impact stems mainly from the following key areas:

  • Well Governed: Establishment of contractual relations between the City authorities and transport operators, stimulating service quality improvements.
     
  • Competitive: Enhanced private sector participation in service provision; improved operational and financial performance of the municipal transport company; increased financial performance of private transport operators.

Client Information

TRANSPORTNAYA KOMPANIYA GORODA UST-KAMENOGORSKA

The Company is a 100 per cent municipally owned entity established by the City Akimat.

EBRD Finance Summary

KZT 3,500,000,000.00

Senior loan of up to KZT 3.5 billion to the Company. Remaining Project cost of up to KZT 1.5 billion, to be covered by the Oblast Akimat's grant co-financing.

Total Project Cost

KZT 5,000,000,000.00

The total Project cost is estimated at KZT 5.0 billion excluding technical cooperation.

Environmental and Social Summary

Categorised B (2014 ESP). The environmental and social issues associated with the provision and operation of new buses can be readily identified and managed. Due diligence has been carried out with the assistance of an independent consultant who undertook an appraisal of the project and an audit of the existing bus operations in the City. The new buses will increase capacity and meet growing demand as well as reducing reliance on older and more polluting buses. The new buses will be diesel EURO 5, or higher depending on the availability of fuel.

Oskemen is a city of around 330 thousand people. Public transport is dominated by motor vehicles and there are currently around 500 buses operating from six depots. Around 1000 people are employed in bus operation.

The due diligence has identified a number of issues with the existing bus operations that need to be addressed. These include a lack of environmental or social management systems, limited EHS capacity, gaps in HR policies and poor practices with regard to emissions and waste management.

To address these issues two ESAPs have developed, one for the City bus company, which will own the buses, and one for the bus operators, which will operate them. These ESAPs address the EHS and HR management gaps identified and require company to introduce training on driving safety and disability awareness. It is possible that some job losses may result from the introduction of e-ticketing systems and so the ESAPs also include requirements for the development of Retrenchment Plans where required.

The EBRD will monitor the implementation of the ESAPs through annual reports from the client.

Technical Cooperation

The following technical cooperation assignments are envisaged as part of this project:

Pre Loan Signing

  • Project feasibility study including an environmental and social assessment. €195,000 was provided by the EBRD Shareholder Special Fund ("SSF").
     
  • Review of the legal and institutional structures. €50,000 financed by the EBRD.

Post Loan Signing

  • Project Implementation Support. The assignment's cost is estimated at up to €295,000; proposed to be financed by an international donor or the SSF.
     
  • Corporate Development Programme. The assignment's cost is estimated at up to €600,000; proposed to be financed by an international donor or the SSF.
     
  • Pre-Shipment Inspection of the Buses. The assignment's cost is estimated at up to €150,000; proposed to be financed by an international donor or the SSF.

Company Contact Information

Mr Pankov
too_cupp@mail.ru
27 Kazakhstan Str., Oskemen, East Kazakhstan Region, Kazakhstan.

 

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

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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.