Vinnytsia Automated Fare Collection Project

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering providing a loan to the Municipal Enterprise “Vinnytsiacartservis” (the “Company”), wholly owned by the City of Vinnytsia (the “City”) to finance the implementation of an Automated Fare Collection (“AFC”) system for public transport in the City on a design, build and maintain (“DBM”) basis (the “Project”). The contract for an AFC system will be signed between the Company and a private operator to be selected by the Company through a competitive tender.

Transition Impact

The Project’s transition impact derives from:

Increased private sector participation: The Project will result in increased private sector participation by replacing the resource-intense and inefficient current ticketing system with an AFC system, which the private sector partner will operate and maintain under a DBM contract.

Demonstration effects – new ways of doing business: The Project will be the first AFC in the country on a DBM basis. The structure may create a replicable model for other public utilities and public service companies in Ukraine.

Frameworks for markets – improved regulation: The Project and the improved approach to urban transport regulation more generally, will allow the municipality to establish a stronger transport authority. This regulatory model will feature a public service contract (“PSC”) and the new AFC system to be integrated across all public transport services. It will ensure that service support payments will be based on a price per vehicle-kilometre and the implementation of an agreed service plan. The PSC will increase transparency and accountability in the relationship between the City and the public transport operators by establishing clear rights and obligations, incentives for greater efficiency and higher quality. Moreover it will allocate different functions and responsibilities to parties which are better positioned to manage related risks and improve service quality and efficiency.

The expected transition impact rating is ‘good’.

The Client

Municipal Enterprise “Vinnytsiacartservis”, a municipal company operating in the City of Vinnytsia and wholly owned by the City of Vinnytsia.

EBRD Finance

€8 million EBRD loan to the Company secured by a municipal guarantee of the City.

Project Cost

Up to €9 million.

Environmental Impact

The project has been categorised B in accordance with EBRD's 2008 Environmental and Social Policy. The environmental and social impacts associated with the Project are expected to be mainly positive. Any adverse impacts potentially associated with the Project, are likely to be site-specific and readily identified and mitigated. Standard environmental and social due diligence will apply. The client's corporate management systems and capacity to implement the project in accordance with the Bank's Performance Requirements and compliance record will be reviewed. Environmental, Social and Occupational Health & Safety and labour issues associated with future and current operational activities of the Company are to be analysed. An Environmental and Social Action Plan (ESAP), containing mitigation measures for identified issues along with a framework for the provision of information to stakeholders is expected to be developed and agreed with the Company. The Company will need to implement the ESAP, provide timely information to stakeholders affected by the Project and submit annual environmental and social reports to the Bank.

Technical Cooperation

Pre-signing

• Technical and Financial Due Diligence of the Project (€56,000) financed by the Bank’s own resources;
• Legal Due Diligence of the Project (€20,000), financed by the Client’s own resources;

Post-signing

• Procurement, Implementation Support and Contract Supervision (€284,500), to be financed by an international donor;
• Strengthening of the Public Transport Regulatory Framework in the City of Vinnytsia (€288,750), to be financed by an international donor.

 

Related material