Translated version of this PSD: Croatian
The EBRD is considering providing a €18.8 million loan to Port of Split Authority (PSA) in Croatia. The proceeds of the EBRD loan will be used for the extension and reconfiguring of the passenger wharves at the port. The extension and rehabilitation of the wharves is required to increase the capacity of the existing infrastructure within the port area to allow for more efficient processing of the island ferry traffic and the entry of medium sized cruise ships into the port area.
The rehabilitation of the port of Split infrastructure is being implemented as part of the Government’s long-term investment strategy to support the expansion of the tourism network in Croatia. The importance of efficient local transport infrastructure is recognised as one of the key factors to ensure the quality of service and expansion of the tourist offer in Croatia outside the limited number of major/well-known tourist hubs such as Dubrovnik and Istria.
• Frameworks for markets/ Management Strengthening: the Croatian Ministry of Transport acknowledges that there is an urgent need for strengthening the management framework at the level of local port authorities to ensure that their operations are based on commercially beneficial and financially sustainable principles. The Project will provide support for the development of a five year Business Plan for the Port Authority and support for the adoption of a dedicated management information system;
• Frameworks for markets/ Environmental Management: Environmental management is of particular significance in Split as the Port Authority’s operational area in the Southern Port is located in the centre of the City. The maritime industry-specific Port Environmental Review System (PERS) from Ecoport is fast becoming the recognised standard for port operations in Europe, where 33 ports have already achieved PERS certification. As part of the EBRD loan conditionality environmental management systems are to be developed and adopted by PSA based on the PERS model, where appropriate, to ensure full compliance with the EBRD Environmental Policy as well as the European operational standards.
• Private ownership/ New private provision of goods and services: The loan agreement will include a covenant requiring the Port Authority to launch the tender for the private sector concession for the passenger terminal by a specified date as currently envisaged in the Pre-Accession Maritime Strategy. By increasing port capacity, the extended berth area will result in a higher commercial value for the envisaged concession.
Port of Split Authority – a statutory authority established to administer and manage the operations of Port of Split in Croatia.
EUR 18.8 million loan.
EUR 23.4 million.
The Project has been categorised B in accordance with the EBRD Environmental and Social Policy 2008. The extension and reconfiguration of the passenger wharves at the port of Split will result in some adverse environmental and social impacts that are site-specific and readily addressed through mitigation measures.
A review of the site, existing PSA operations and an Environmental and Social Analysis of the proposed investment were undertaken by independent consultants, who also took into account baseline information included in an EIA prepared in 2004 for a similar project in the same location.
Due diligence has confirmed that the project will be structured to meet Croatian regulatory requirements and EBRD Performance Requirements (PRs) and that the PSA is already operating substantially in compliance with the Banks PRs. The most significant environmental and social issues associated with the project are: construction nuisances, traffic management, waste and hazardous materials management. The Project will not require any dredging and is not located adjacent to residential areas. The Project is expected to contribute to the continued development of the tourism industry and improve safety management within the port area.
The construction phase of the Project may include the disposal of asbestos due to the demolition of warehousing units. The ESAP includes requirements for laboratory analysis to confirm the presence of asbestos and safe systems of work for the handling and disposal of this hazardous substance.
An Environmental and Social Action Plan (ESAP) has been prepared for both the construction and operational phases of the project to enable to project to be structured to meet the Bank’s PRs. The ESAP includes requirements for: analysis for the detection of asbestos; development of a waste management plan; improvements to health and safety arrangements and the implementation of environmental management system by the Port Authority based on the Eco Port standard.
The Company will be required to carry out the project in compliance with National, EU environmental regulations and standards and the Bank’s PR’s as well as to provide the Bank with annual environmental and social reports, including updates on the ESAP, and notification on any material accidents of incidents.
Envisaged technical cooperation to be sought includes assistance and implementation of a Business Planning process and support of PERS certification.
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