The EBRD is considering providing a loan of up to €25 million to Sarajevo International Airport (‘SIA’). The loan will finance an extension of the passenger terminal, together with upgrading and expanding the taxiway and apron. The investments are required to meet the growing passenger traffic at the international airport. In addition, measures to enhance the participation of the private sector in the operations of SIA will be introduced.
The Bank has a long-standing relationship with Sarajevo International Airport and has contributed to the creation of SIA as a limited liability company owned by the Federation of Bosnia and Herzegovina. As part of the current project, the Bank will support measures that increase the participation of the private sector in the airport’s operations through the outsourcing of selected activities to private companies. In addition, the Bank will assist SIA in increasing the share of non-aviation revenues such as duty free areas, catering, business lounges and car parking. Finally, the project will include support for the EU’s Open Skies Policy.
Sarajevo Airport d.o.o (‘SIA’) is an airport operator responsible for the management of Sarajevo International Airport. It is the main airport in Bosnia and Herzegovina, which has been in existence since 1969. SIA is a limited liability company, wholly owned by the Federation of Bosnia and Herzegovina.
A sovereign guaranteed loan to SIA in an amount of up to €25 million.
The total project is €31.9 million.
Since the potential adverse environmental and social impacts that may result from the project are typically site-specific, readily identified, and can be mitigated through mitigation measures, the project has been categorised B in accordance with the EBRD Environmental and Social Policy (2008).
Summary of issues & outcomes of due diligence
An environmental, health and safety (EHS) audit of the existing facilities and an environmental and social analysis of the proposed project have been carried out by independent consultants as part of the Master Plan development. EBRD environmental specialist also visited the site together with the consultants. The results of the due diligence indicates that the current EHS performance of the airport is satisfactory, however, there are areas which can be further improved.
The main areas for improvement are noise in the administrative building; oily water management; waste management; hazardous materials handling; improvement of the sewerage system; monitoring (air emissions, wastewater, noise). The current position of the fuel storage area is inappropriate for safety reasons and it is recommended to relocate it as soon as possible.
The proposed project is expected to result in a number of environmental impacts. However, these impacts will be localised and not be significant. The main issues will be dust, air emissions from vehicles and equipment, increase in traffic, waste, and noise during construction; discharges of storm water mixed with oil and de-icing fluids; and potential spills from aviation fuelling (apron) and fuel tanks during operation. All such potential impacts can be addressed through the mitigation measures identified during the environmental analysis.
Given that the extension to the terminal building and apron as well as the system upgrades will be constructed within the boundaries of an existing airport, the project will not cause any significant additional community health issues. SIA has signed an agreement with the municipality of Ilidza (local community) that regulates preparation of a spatial plan and other development plans. There is a problem of illegal and unlawful construction in this area, but some of the existing houses near the airport had been legitimised during the preparation of the prior spatial plan. SIA has developed and implemented a Safety Management System comprising safety procedures, risk management, emergency planning, investigating and reporting on accidental and incidental situations. All procedures within Safety Management System have been prepared in accordance with the regulatory and ICAO requirements.
Summary of ESAP
An Environmental and Social Action Plan has been developed and agreed with SIA. The main actions in the ESAP are as below:
- Development and implementation of environmental management system in accordance with ISO 14001;
- Preparation of a Waste Management Plan;
- Introduction of selective waste collection and contracting delivery of recyclable waste;
- Installation of oil separator to treat wastewaters from the apron;
- Reconstruction of underground fuel tanks and relocation of aircraft fuel tanks;
- Sampling and analysis of soil underneath fuel tanks after relocation of fuel tanks;
- Reconstruction of sewerage system;
- Replace windows and façade framings in order to achieve noise reduction up to 35 dB in the office premises;
- Construction (or equivalent) of hazardous waste storage and waste oil storage area;
- Purchase vehicle for collection of de-icing fluids;
- Water spraying during construction works to suppress dust;
- Regular maintenance of vehicles, mechanisation and equipment;
- Limiting activities in the evening and night-time to reduce night noise levels;
- Phasing of construction-related traffic;
- Coordination with the local police unit managing the traffic flow at the entrance/exit of the SIA terminal area;
- Monitoring of wastewaters, air emissions;
- Develop spill prevention and control measures.
Project monitoring required
The company will carry out regular monitoring of waste water discharges, air emissions and noise. The monitoring of the Bank will be conducted through the review of the Annual Environmental and Social Reports that will be presented by the Company. Site visits will be carried out by EBRD staff, if deemed necessary.
Information disclosure & stakeholder engagement
A Stakeholder Engagement Plan (SEP) including a grievance mechanism has been developed and communicated to the public. A summary of the ESAP and the SEP has been disclosed at the following locations:
- Notice boards in SIA
- €200,000 for the Update of the Master Plan for SIA, funded by the Western Balkans Fund and the Bank’s Shareholder Fund.
- €300,000 for the final design work for the passenger terminal, for which grant funds will be sought.
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP