SmartCard

Location:

Russia

Project number:

43301

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Approval date:

13 Dec 2011

Status:

Approved

PSD disclosed:

17 Oct 2011

Translated version of this PSD: Russian

Project Description

The EBRD is considering to extend RUB-denominated senior and subordinated loans in the amount of up to RUB 1.36 billion (~EUR 32 million) to Vessolink Group for the purposes of developing Automatic Fare Collection (AFC) systems in Russian cities based on long-term concession-type agreements with municipalities to be assigned via open tenders.

Transition Impact

Private ownership and business standards: The project will introduce private sector management into ticketing for urban transport companies, a sector traditionally managed by the urban transport companies. Given the client’s track record, it is expected that best technical, operational, managerial and commercial practices will be introduced thereby setting standards of business conduct and behaviour in the cities.

Promoting Good Practice through PPP Development: The Bank will finance a TC to provide advice and support to municipalities in the area of AFC systems, with an objective to provide municipalities in Russia with good-practice guidelines for Automated Fare Collection (AFC) preparation and implementation for municipalities in Russia, as well a template tender document.

The Client

It is envisaged that the financing will be extended directly to project companies owned by Vessolink Group (the “Group”), a privately owned Russian IT and engineering group of companies which are working in the niche related to traffic management, parking and AFC.

EBRD Finance

A Framework facility with the Group of up to RUB 1.36 billion (~EUR 32 million) for both senior debt and subordinated debt. Approval of financing the individual project cities under the Framework will depend on due diligence results for each city.

Project Cost

The total project cost is currently estimated at RUB 2.1 billion (~EUR 49 million).

Environmental Impact

The framework is not categorised itself, but each subproject will be individually categorised. The environmental and social impacts associated with the provision of AFC projects are not significant and can be readily identified and addressed.

Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department based on a questionnaire and interview with the Group's representatives. The ESDD confirmed that the Group has the institutional capacity to implement the sub-project in compliance with the Bank's Performance Requirements, and is compliant with Russian legislation. The Group also has established an operational health and safety management system in compliance with Russian Occupational health and safety regulations and also has initiatives underway to further improve workplace conditions and medical services for its staff.

The operations of the Group and implementation of AFC projects are not associated with significant environmental and community Health, Security and Safety issues. The framework is expected to result mainly in environmental benefits and will have certain benefits for public sector operators, for city administration and for passengers through the increased efficiency of AFC services and cash collection. The Group will ensure development and provision of well structured, timely and effective informational and educational campaign on how to use AFC system for all involved stakeholders with special attention to sensitive groups (old people, children, students, people with disabilities).

An Environmental and Social Action Plan (ESAP) for framework has been developed and agreed with the Group to improve stakeholders identification and communication procedure, including implementation of grievance mechanism and continuous improvements based on the lessons learnt from the first on-going project. In addition, the ESAP includes other improvement measures for the Group, including development and implementation of a Stakeholder Engagement Plan, Media plan and grievance mechanism. The Group will also disclose locally information on its environmental and social performance. The ESAP will be appropriately updated for every new sub-project.

The Bank will monitor the projects and the Group’s environmental and social performance and implementation of the ESAPs through annual E&S reports. The Group will also provide brief reports on 'lessons learnt' after completion of every sub-project.

Technical Cooperation

Municipal Support for Outsourced E-ticketing Systems in the Public Transport Sector – an analysis of the Legal framework and preparation of EBRD guidelines for AFC procurement in Russia: Given the need for advice and support to municipalities or regions in order to draft and tender contracts for AFC on an outsourced basis, a qualified consultant hired by the Bank will prepare guidelines for AFC procurement, including template of investment contract and comments to it (EUR 100,000, non-reimbursable, TC funds, to be financed by the Government of Spain).

Company Contact

Roman Pilipenko, Tel: + 7 495 974-64-09, Email: pilipenko@vessolink.ru

 

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

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