Translated version of this PSD: Romanian
The EBRD is considering a senior loan of up to RON 58.5 million to S.C. Publitrans2000 S. A. (the “company” or “Publitrans”), a joint-stock company wholly-owned by the municipality of Pitesti (the “city”), which provides public transport services. The loan will finance part of the company’s fleet renewal, which consists of 70 new EURO-6 buses, in line with applicable EU requirements. The project is part of the city’s plan to improve the public transport system by reducing air pollution in the city centre and by facilitating access to new business/industrial areas.
Transition impact is expected to derive from:
- Revising the existing public service contract (“PSC”) according to best-practice with improved predictability and incentives for the service provider.
- Positive demonstration effect from a successful company restructuring through a corporate development programme with support from a twinning partner. A twinning agreement with a high quality operator will serve as a means of introducing additional commercial discipline and corporate system, as well as for providing support for the implementation of the business plan.
- Additional transition impact may also derive from tendering support for an automated fare collection (e-ticketing) system to be built, financed and operated by the private sector. A new e-ticketing system, to be carried out on an out-sourced basis, will be designed technically and prepared for tender either as a small scale PPP or a Design-Build-Operate-Maintain contract.
S.C. Publitrans2000 S. A., a joint-stock company owned by the city of Pitesti, Arges county.
A senior loan of up to RON 58.5 million to the company.
The total cost of the project is estimated at EUR 16.1 million.
The Project has been categorised B in accordance with the Bank’s Environmental and Social Policy 2008. Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department based on a review of the Company’s corporate management systems; relevant information provided by the Company; and discussions with the Company’s personnel to evaluate the current operational performance and the risk management plans for the planned investment programme.
The investigation showed that the potential future adverse impacts of the project will be site specific and addressed through appropriate mitigation measures. The acquisition of 70 new EURO-6 buses in line with EU standards and introduction of the automated traffic management system is not associated with significant EHS impacts and will create considerable social, environmental and financial benefits to the community and will result in the saving of 11,380 tonnes of CO2 emissions.
The affordability analysis shows that affordability ratio will be well below the threshold of 5 per cent.
An Environmental and Social Action Plan (ESAP) has been developed and agreed with the Company to address some areas for improvement identified during the ESDD and carry out the necessary mitigation measures which will enable the Company to comply with national regulations and the Bank’s PRs.
In addition, the ESAP also requires the development and implementation of a Stakeholder Engagement Plan and grievance mechanism. The Company will also disclose locally information on its environmental and social performance.
The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.
The project will benefit from TC including:
Technical and financial due diligence (EUR 50,000, financed from the Bank’s own resources).
Support for corporate development and commercialisation. (Estimated at EUR 150,000, donor funding or the EBRD Shareholder Special Fund). The TC would cover support for preparation of a business development plan; revised PSC to be signed between the City and the Company will be also included.
Support for e-ticketing out-sourcing. (EUR 150,000, donor funding or the EBRD Shareholder Special Fund). The TC would cover options analysis and support for the tendering process, negotiations and the start-up phase of the contract.
For business opportunities or procurement, contact the client company.
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Tel: +44 20 7338 7168
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