Pula Bus Renewal project

Location:

Croatia

Project number:

48246

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

06 Jul 2016

Status:

Signed

PSD disclosed:

03 May 2016

Translated version of this PSD: Croatian

Project Description

A EUR 5.0 million senior long term loan to Pulapromet d.o.o., the municipal public transport company providing transport and affiliated services in the wider area of City of Pula.

Project Objectives

The EBRD financing will be utilised for the modernisation of the bus fleet through procurement of new low-floor compressed natural gas (CNG) buses. The Project will improve the current condition of the Company's outdated bus fleet that would result in a significant improvement of its operating and environmental performance as well as improved safety standards.

Transition Impact

The proposed project is expected to provide transition impact through the following:

(i) Demonstration of enhanced operational and financial performance via Financial and Operational Performance Improvement Programme (FOPIP) and project implementation support through enhanced Public Service Contract (PSC). The FOPIP will enable substantial training for key staff of the Company enabling commercial skill transfer and helping the operational restructuring of the Company, focusing on marketing, financial planning and fare collection. The commercialisation and
corporate governance of the Company will be further improved through continued appliance of the provisions of the Municipal Support Agreement (MSA) and update of the Public Service Contract (PSC) in compliance with EU regulation 1370/2007;

(ii) Institutions and policies that support market functioning and efficiency: Sustainable Urban Mobility Planning (SUMP), to complete and update previous Urban Masterplan (2007) and Transport Strategy (parking) and take into account best-practice urban transport planning and EU guidelines with particular focus on improvements to parking and traffic management systems and enforcement, thus facilitating the city to implement sustainable transport solutions.

Providing framework for markets and demonstration effect-replication of transaction structure, notably use of the MSA in the traffic management sector in Croatia

Client Information

PULA PROMET

Pula Promet d.o.o., the municipal public transport company providing urban transport services in the Pula area.

EBRD Finance Summary

EUR 5,000,000.00

A long-term senior loan of up to EUR 5.0 million.

Total Project Cost

EUR 5,000,000.00

EUR 5.0 million

Environmental and Social Summary

The proposed project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy. The modernisation of the bus fleet is expected to improve customer service and safety, increase fuel efficiency and reduce vehicle emissions due to the replacement of the older diesel buses with new CNG buses, including CO2 and notably toxic emissions (SOx, NOx, CO, particle matter).

The project will directly facilitate the replacement of old buses on existing routes and will therefore improve the safety and quality of public transport for passengers which includes accessibility for passengers with reduced mobility. Environmental and Social Due Diligence (ESDD) was carried out by independent consultants appointed by the Bank to review corporate E&S management systems and assess the company’s compliance with the EBRDs Performance Requirements (PRs). The ESDD identified limited impacts associated with the acquisition of new buses and these will arise during the operation and the maintenance of the new buses. These impacts are site specific and can be addressed through mitigation measures. According to Croatian Environmental Impact Assessment (EIA) legislation (which is in line with EU Directives 2011/92 and 2010/75) this investment project which involves the renewal of the company’s bus fleet, is not subject to EIA or EIA screening procedure.

The Company is committed to comply with environmental legislation in Croatia and environmental management system will be introduced by the Company with ISO 14001 in order manage environmental performance. The Company will adopt a Health and Safety Management System which aligns with OHSAS 18001 and will further improve its road traffic safety performance by developing and implement a formal road traffic safety management system which aligns with ISO 39001. An Environmental and Social Action Plan (ESAP) has been developed for the project to address issues identified during ESDD and the project has been structured to meet the Banks Performance Requirements. The issues identified include the points raised above and the ESAP aims to strengthen the existing environmental, health, safety and road traffic management systems.

Non-Technical Summary: English | Croatian

Technical Cooperation

Pre-signing

TC 1: Environmental and social due diligence to assess the feasibility of the Project.

TC 2: Technology comparison analysis among the different type of buses to allow the Company to make the final decision on the type of the bus they will procure.

Post-signing

TC 3: Sustainable Urban Mobility Planning (SUMP) with particular focus on improvements of parking and traffic management systems and enforcement. The estimated cost of the assignment is EUR 160,000, proposed to be financed by an international donor or the Shareholder Special Fund (SSF).

TC 4: Financial and Operational Performance Improvement Programme (FOPIP) and project implementation support through enhanced Public Service Contract (PSC).

The FOPIP component of the assignment will provide substantial training for key staff of the Company enabling commercial skill transfer and helping the operational restructuring of the Company, focusing on marketing, financial planning and fare collection.

This TC will also include the review and refinement of the PSC in accordance with EU Regulation 1370/2007. Call-off under existing MEI framework contract for Croatia. The estimated cost of the assignment is EUR 160,000, proposed to be financed by an international donor or the SSF.

Company Contact Information

Igor Skatar
igor.skatar@pulapromet.hr
385 (0)52 222 677
385 (0) 52 222 677
Starih statuta 1/a 52100 Pula Croatia
 

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