Plovdiv Road Rehabilitation Project

Location:

Bulgaria

Project number:

44851

Business sector:

Municipal and environmental infrastructure

Notice type:

State

Environmental category:

B

Approval date:

23 Jul 2014

Status:

Repaying

PSD disclosed:

18 Jul 2013

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The EBRD is considering providing a loan of up to EUR 14.2 million to the City of Plovdiv. The loan will be used to support the road rehabilitation and construction works for four city boulevards.

The Project will enable the City of Plovdiv to rehabilitate and enhance important segments of the urban road infrastructure, thereby improving travel times, enhancing road safety and reducing congestion. All rehabilitated road segments will feature new bicycle lanes that will complement the planned expansion of the bicycle routes in Plovdiv, thus contributing to the city's sustainable transport goals.

Transition Impact

1) Promoting private sector involvement in the provision of public services
The Bank will support the City of Plovdiv in structuring, tendering out and implementing a long-term contract for performance-based management and maintenance of road infrastructure ("PMMR contract") with a private contractor. Through outsourcing the road management and maintenance to a private sector operator, the City will achieve more efficient and sustainable road infrastructure in Plovdiv.

2) Market expansion
Through supporting the implementation of an innovative PMMR contract in Plovdiv, the Bank will promote the development of the market segment for incentive-based and long-term road rehabilitation and maintenance services in Bulgaria.

3) Improved governance and budgeting
Through the PMMR contract, the City's experience and capacity to plan, implement and manage complex, long-term contracts will be enhanced. A more predictable multi-year contract for road maintenance, will also improve the financial planning and budgeting practices of the municipal administration.

4) Successful demonstration of an innovative contract for sustainable urban road management and maintenance
The PMMR contract in Plovdiv will be a pioneer project for Bulgaria in the area of urban infrastructure maintenance and management. As such, it is expected to have a strong demonstration effect for other municipalities in Bulgaria and the region.

5) Improved economic inclusion of less affluent urban areas
The Project is addressing the particular problem of economic exclusion of at least one poor neighbourhood. By introducing walkways, easy crossings at road junctions, and bicycle lanes along the rehabilitated road segment, the Project will allow the young and economically-active member of this neighbourhood to have better, non-motorised, access to urban areas with better employment opportunities, healthcare and educational facilities.

6) Improved framework for markets
The Bank will assist the City in improving its existing public service contracts with urban transport operators so as to make them compliant with best industry practices and the relevant EU regulations.

Client Information

CITY OF PLOVDIV

EBRD Finance Summary

EUR 14,200,000.00

A long-term investment loan in the amount of up to EUR 14.2 million.

Total Project Cost

EUR 22,000,000.00

The total project cost is estimated at EUR 15.3 million. The City's own contribution to the Project will amount to EUR 1.1 million.

Technical Cooperation and Grant Financing

Pre-signing

  • EUR 15,000 for conducting a feasibility study to assess the City's readiness to structure and implement and PMMR contract and the private sector interest to participate in such contractual arrangements (EBRD-funded)

Post-signing

  • EUR 150,000 to assist the City in structuring, tendering out, implementing and monitoring the execution of PMMR contracts (Donor-funded)
  • EUR 20,000 to assist the City in undertaking a baseline study for social exclusions and labor market participation in the identified deprived neighborhood in the City of Plovdiv (Donor-funded).

Company Contact Information

Plamen Raichev
p_raichev@plovdiv.bg
+35932656445
+35932656713
www.plovdiv.bg
Square Stefan Stambolov 1, 4000 Plovdiv, Bulgaria

Implementation summary

The Project enabled the City of Plovdiv to rehabilitate and enhance important segments of its urban road infrastructure, thereby improving travel times, enhancing road safety and reducing congestion. All rehabilitated road segments feature new bicycle lanes that complement the planned expansion of the bicycle routes in Plovdiv, thus contributing to the city's sustainable transport goals. The Project has also addressed the particular problem of economic exclusion of at least one poor neighbourhood. By introducing walkways, easy crossings at road junctions, and bicycle lanes along the rehabilitated road segment, the Project allows the young and economically-active members of this neighbourhood to have better, non-motorized, access to urban areas with better healthcare, education and employment opportunities. Initially, total project costs amounted to EUR 15.3 million (VAT excluded), however changes in the detailed design and the need of additional construction works, resulted in an estimated additional EUR 3.1 million increase in project costs to reach completion. Construction works on the rehabilitated boulevards are completed and acceptance protocols signed. The works on the new Severen boulevard are 90% complete.

The project also ensured adherence to strict environmental, energy-efficiency and social standards. The City has fully implemented the Environmental and Social Action Plan on time.

TI achievements are the signing of revised, EU-compliant PSCs that have been signed with all urban transport companies. Plovdiv's contractual arrangements with its private bus operators were transformed. These revisions addressed some material flaws of the old PSC structure, such as the lack of predictable price adjustments, as the old methodology did not provide for an indexation-based formula.

PSD last updated

14 May 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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