Translated version of this PSD: Croatian
The EBRD is considering the provision of a senior loan in the amount of up to EUR 10 million to Promet Split d.o.o. (the “Company”) for the modernisation of the bus fleet through the purchase of up to 30 new buses.
The transition impact of the proposed transaction will be achieved through:
Demonstration of Successful Restructuring through the implementation of a Financial and Operational Improvement Programme (“FOPIP”) and related company restructuring.
Frameworks for Markets with transition impact deriving from the introduction of a new Public Service Contract (“PSC”) between the Company and the City of Split which is expected to enhance predictability and accountability for the provision of bus services in Split.
Development of Sustainable Urban Mobility Planning (SUMP). The SUMP will be focused on best-practice urban transport planning. This will include the preparation of a regional-wide transport strategy and policy to emphasise the mobility for the general public.
The expected transition impact rating is ‘good’.
Promet Split is a limited liability company, providing public transport services in the area of the City of Split and neighbouring cities and municipalities. The Company is majority owned by the City of Split (65.04 per cent), while the remaining shareholders are cities and municipalities from the Split-Dalmatia County. The Company currently operates 167 buses covering the entire network of 37 urban routes and 23 suburban routes between the cities/municipalities in Split-Dalmatia County, resulting in around 9.1 million bus kilometres per year and around 30.2 million passenger trips annually.
Senior loan in the amount of up to EUR 10 million to Promet Split d.o.o. for the modernisation of the bus fleet through the purchase of up to 30 new buses.
Total Project costs of up to EUR 10 million.
Environmental and social categorisation, impact, and mitigation
Categorised B. The environmental and social impacts associated with the project are expected to be mainly positive and include reduced pollution and improved passenger safety. The key environmental and social issues associated with this project include road safety and the company’s capacity to manage environmental, safety and health risks inherent with the operation and maintenance of the existing and proposed hybrid / CNG public service vehicles. Other safety risks include the maintenance of third party vehicles which the company currently undertakes. The Banks due diligence will review the Company’s environmental, health and safety management systems, human resources policies, road traffic safety management and arrangements for managing the safety and security of all passengers (with particular focus on school children)and other road users. Quality assurance / checks on all vehicles which are maintained at the company’s workshops will also be reviewed. The affordability of bus fares and disability access will also be assessed on existing vehicles along with the capacity for the company to operate in compliance with the Banks Performance Requirements. The project due diligence will determine if fare increases are required. The first stage of the ESDD will be done by means of an initial questionnaire followed by a site visit by external consultants. Any required improvement and mitigation measures will be agreed with the company in the form of an ESAP and implemented during the project.
The PSD will be updated once the results of the ESDD become available.
Technical Assistance will be provided as described below:
Environmental and Social Due Diligence to assess the feasibility of the Project. This TC will be conducted in order to check whether the procedures and policies utilized by the Company during the Project preparation adhere to the EBRD’s environmental and social standards. Technical Due Diligence to determine the type of bus technology to introduce in Split, and to prepare technical specifications.
Sustainable Urban Mobility Planning (SUMP) (EUR 275,000), focusing on best-practice urban transport planning and analysing the potential for greater private sector opportunities, proposed to be financed by an international donor or the Shareholder Special Fund (“SSF”).
Project Implementation Support and Financial and Operational Performance Improvement Programme (FOPIP) (EUR 200,000), to support the Company with the procurement aspects of the loan implementation, assisting the Company with further commercialization, long-term planning and with the preparation of the Public Service Contract in accordance with EU Regulation 1370/2007. Proposed to be financed by an international donor or the SSF.
Zeljko Krnic, director
Promet d.o.o. Split,
21 000 Split, Croatia
Telephone +385 21 407 825
For business opportunities or procurement, contact the client company.
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Text of the PIP