Sibiu Urban Infrastructure Rehabilitation

Location:

Romania

Project number:

47537

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

25 Nov 2015

Status:

Disbursing

PSD disclosed:

23 Jun 2015

Translated version of this PSD: Romanian

Project description and objectives

The EBRD is providing a loan of up to €15 million to Sibiu Municipality (the “Municipality” or the “City”) to finance key investments in the urban transport sector and related infrastructure including street rehabilitation, a concession for local road maintenance, as well as support for the preparation of a Sustainable Urban  Mobility Plan (“SUMP”).

Transition impact

Transition goals of the operation include the following:

  • Framework for markets
    Improving road management and maintenance by using performance-based contracting.  Better value for money will be achieved by integrating multi-year maintenance activities into the urban road maintenance sector.
     
  • Concession for local road maintenance:
    Through the use of a service concession in the road maintenance sector, the project will foster greater private sector participation with performance-risk transferred to the private sector.
     
  • Sustainable Urban  Mobility Plan (“SUMP”):
    Through the preparation of a regional-wide transport strategy and policy, overall mobility in the city is expected to improve especially with regard to the viability of using public transport as an alternative to private car travel.
     
  • The expected transition impact rating is ‘good’.

The client

Sibiu Municipality.

EBRD finance

Up to €15 million senior loan to the city.

Total project cost

The total cost of the project has been estimated at EUR 18.35 million.

Environmental and social categorisation, impact, and mitigation

The proposed project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the project, which is ongoing, includes an environmental and social audit to assess the municipality’s management capacity and systems to manage environment, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the city’s ability to carry out the project in compliance with the Bank’s performance requirements.

An Environmental and Social Action Plan (ESAP) will be prepared for the project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism and information on environmental and social performance. A summary of the agreed Action Plan will be released to stakeholders.

This project summary document will be updated when the results of due diligence are known.

Technical cooperation

The initial project mobilised several technical cooperation components:

Pre-signing

  • Technical and environmental due diligence (€60,000) to include

    (i) a technical review of the existing feasibility studies;
    (ii) support for drafting functional specifications of the works to be tendered and support for the tendering process;
    (iii) preparation of a tender strategy for the proposed works; and
    (iv) an environmental analysis of the Project.
     
  • TC Funds for the preparation of a sustainable urban mobility plan (“SUMP”) for the city (Estimated at €260,000). The TC would cover support to the city with the preparation of a SUMP in line with EU requirements.

Post-signing

  • Performance-Based Road Contracting, specifically the design of a Road Maintenance Concession to support the city with the scope of the contract, the performance standards to be introduced, the tender documentation, and assistance with selecting and negotiating with the private sector bidders. The assignment will also include the design of a new Local Road Maintenance Fund using surplus parking fees and/or HGV charges. The estimated cost of this assignment is up to €150,000.

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.