Split Public Transport Programme

Location:

Croatia

Project number:

46965

Business sector:

Municipal and environmental infrastructure

Notice type:

Private

Environmental category:

B

Target board date:

22 Jul 2015

Status:

Cancelled

PSD disclosed:

09 Apr 2015

Translated version of this PSD: Croatian

Project Description

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.
 

Transition Impact

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’.
 

The Client

 
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.
 
 

EBRD Finance

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.
 

Project Cost

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 Cooperation

Technical Assistance will be provided as described below:
 
Pre-signing
  1. 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.
Post-signing
 
  1. 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”).
     
  2. 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.
Company Contact
Zeljko Krnic, director
Promet d.o.o. Split,
Hercegovačka 20,
21 000 Split, Croatia
Telephone +385 21 407 825
 

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.