TOGLIATTI URBAN TRANSPORT PROJECT

Location:

Russia

Project number:

35407

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

07 Dec 2004

Status:

Completed

PSD disclosed:

30 Sep 2004

Project Description

The proposed project comprises restructuring and modernisation of the public transport sector in the client city of Togliatti (pop. 740,000) on the river Volga, as part of which the Bank will provide financing for approximately 100 new buses. The proceeds of up to € 10 million (RUB equivalent) will be used to procure the buses, as well as to upgrade maintenance facilities, as required. TC funding in the amount of approximately € 600,000 will be sought to implement the necessary institutional reforms, including assisting the City in enhancing creditworthiness.

Transition Impact

Togliatti has an opportunity to define a model for the role of the public and private sector in Russia, develop a model of “regulated competition” and to rationalise its municipal operating entities.  Specific transition impact will be delivered through restructuring of the public transport, i.e. developing a regulatory framework for private and public operators; possible out-sourcing of services; merging the municipal bus companies to realise efficiencies; corporatisation of the municipal bus company, through inter alia introduction of business planning; and introduction of Public Service Contracts, which will enable the bus company to move away from negotiated subsidies towards transparent multi-year payments for service against defined targets.

The Client

The city of Togliatti (pop. 741,000), an industrial centre in the Samara Region of Russia, on the river Volga.

EBRD Finance

Senior loan to the City, denominated in Russian roubles, in an amount equivalent to up to €10 million.

Project Cost

Up to €12.5 million (RUB equivalent)

Environmental Impact

The Project has been screened B/0.
The introduction of new bus fleet will improve public transport as well as reduce traffic, noise and air pollution in the City of Togliatti.  The buses to be purchased will need to comply with Russian and “Euro” EC air emission standards.  An environmental audit of the existing bus maintenance workshops/depots will be needed to identify environmental risks and liabilities due to possible poor environmental management (e.g. improper management of fuel, waste oils, lubricants, etc.).  The Environmental Analysis will focus on confirming that the tender specifications address reduction of air emissions and implementation of fuel efficiency requirements as well as on quantifying the environmental benefits of the project.

Technical Cooperation

TC funding in the aggregate amount of €600,000 will be sought to implement institutional reforms, and assist the City with enhancing its creditworthiness.
 

Business opportunities

For business opportunities or procurement, contact the client company.

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