The Bank loan will be used to co-finance (i) the construction of one section of the St Petersburg Eastern By-Pass; (ii) construction of one section of a new road between Chita and Khabarovsk in the Far East, near to the border with China (known as ’Amur Road’); (iii) Technical Assistance for project preparation and implementation. In addition, Technical Co-operation funds will be used for advice on a) monitoring, systems and quality management; b) road safety; and c) road sector financing (together the project).
The St Petersburg By-Pass will significantly improve traffic flows for the transit traffic and will relieve congestion and reduce emissions from the road users in the city.
Chita-Khabarovsk road, with total length of 2,165 km, will play a very important role in social and economic development of the Far East region and will provide, for the first time, a road connection between Moscow and Vladivostok. The Russian government considers this investment as a priority.
Transition impact stems from: (i) restructuring of road sector finance; (ii) strengthening of road management by improving monitoring, systems and quality management (with the implementation of a trial programme in a pilot region); (iii) introducing more efficient procurement methods for road construction; and (iv) reforming the regulatory and institutional framework by scoping an assistance programme in the area of road safety.
The borrower is the State. The proceeds of the loan will be lent on to the Russian State Highway Agency (Rosavtodor). Rosavtodor is part of the Ministry of Transport and is headed by the First Deputy Minister of Transport. Rosavtodor is responsible for the administration and management of the federal road network in Russia.
The Bank extends a loan of US$ 229 million. Rosavtodor will provide an estimated US$ 100 million equivalent of own funds as its contribution to the completion of the road and by-pass construction and will also finance all local duties and taxes.
Total project cost is US$ 329 million, excluding taxes and duties to be paid additionally by the borrower.
The project was screened A/O, requiring the Environmental Impact Assessment (EIA) of each component. Initial environmental examination was carried out by Bank’s Environment department in the form of a site visit to the Bypass construction area in September 2001 and subsequent meetings with the environmental, health and safety authorities in charge of the area, representatives of an environmental NGO, as well as with Rosavtodor in Moscow with regard to both the Bypass and the Amur Road sections.
The Environmental Impact Assessments carried out for each component in 2001 were reviewed by the Bank and found satisfactory subject to the borrower obtaining all necessary environmental, health and safety permits and approvals required by the national legislation.
The EIAs examine the environmental impacts associated with the design, construction and operation of each component. Specific impacts considered include "geologic elements" (extraction as well as erosion impacts), soil, water resources, climate and air quality, aquatic and terrestrial ecological elements, including flora and fauna, noise and human settlement. None of these impacts appear to be significant within the project components proposed to be financed by the Bank and will be adequately addressed through mitigation measures. Construction of the St Petersburg Bypass will divert a considerable part of traffic beyond the borders of the built up areas and thus improve the environmental situation in the city of St Petersburg.
Conforming to the EBRD's Public Information Policy, the EIAs for the St Petersburg Bypass and the Chita-Khabarovsk "Amur" road and the EIA Executive Summaries for the components proposed to be financed by the Bank were released for public comment on 22 February 2002. Corresponding public announcements were made on the web-site of the news agency "Prime- Tass" and in the following Russian newspapers: Vecherny Petersburg, Amurskaya Pravda, Zabaikal’sky rabochii. An additional public meeting (for the Chita- Khabarovsk component) is planned for the end of April 2002 to allow the public to make their views known. A procedure of collating and summarising public comments will be exercised throughout the whole public consultation period. Environmental action plans (EAP) outlining specific mitigation and monitoring measures with their cost estimates and implementation timeframe during construction and operation phases for each component are currently being developed by the client and will be submitted to the Bank for approval.
Technical Co-operation funding includes:
EU Project Preparation Facility (€900,000) assisting with monitoring, systems and quality management (with a trial programme to be implemented in a pilot region);
Swedish (SIDA) Bilateral TC funding (€50,000) assisting with best practice in the area of road sector finance;
Danish Technical Assistance co-operation fund (€50,000) for scoping of an assistance programme in the area of road safety;
Canadian Technical Assistance co-operation fund (€375,113) to finance a monitoring consultant who would monitor the implementation of the civil works on behalf of the Bank;
For business opportunities or procurement, contact the client company.
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Text of the PIP