Translated version of this PSD: Polish
The EBRD is considering providing a senior loan of up to PLN 470 million to co-finance acquisition of 35 metro trains (210 metro wagons) required by the Warsaw Metro to be operated over both the existing metro line (Metro Line I requiring 15 new trains) and the new metro line currently under construction (Metro Line II requiring 20 new trains).
Metro Line II is the long-awaited investment in the expansion of high-capacity public transport in Warsaw, which is expected to ease traffic congestion in the city, lower the overall carbon footprint of the urban transport sector, and create crucial linkages with the first metro line by allowing users to transfer efficiently from the east side of Vistula River to the west side of the city.
This project provides a platform to develop a robust methodology to determine the emission reductions of investments in the Warsaw urban transport sector, and aims to monetise these emission reductions under a carbon market instrument, such as Joint-Implementation. If successful, it would be the first carbon market example in the urban transport sector in Europe. This approach could promote market-based carbon trading mechanisms, for urban transport projects.
Further transition impact is also expected to come from successful implementation of regenerative breaking technology as well as from the associated improvements to the Public Service Contract between the City and the metro operator.
Metro Warszawskie Sp. z o.o. (“Warsaw Metro” or the “Company”), a limited liability company wholly owned by the City of Warsaw and providing urban transport services on the subway line in Warsaw.
Up to PLN 470 million senior loan to co-finance the new rolling stock to be purchased by the Company, which is part of the Metro Line II development project implemented by the City of Warsaw and the Company (the “Project”). The Project is expected to be co-financed from the EU Cohesion Funds, the City, the Company and debt financing.
The entire value of the Project is currently estimated at PLN 4.8 billion.
The Project has been categorized B, requiring an Environmental and Social Due Diligence (ESDD) of the project, namely the planned acquisition of new rolling stock.
The ESDD will include a review of the rolling stock to be purchased as well as the current environmental, health and safety (EHS) management systems of the Company and verify whether the Project is structured to meet the Bank’s Performance Requirements (PRs) and the Company has the institutional capacity to implement the Bank’s PRs. Based on the results of the ESDD an Environmental and Social Action Plan (ESAP) will be developed and agreed with the Company. The Bank will co-ordinate its due diligence with among others JASPERS, and review the area of influence of the project, notably the permitting and environmental and social impacts associated with the second metro line.
The PSD will be updated once the ESDD has been completed.
It is envisaged that the technical cooperation support will provide assistance with the following:
1) Environmental and Social Impact Assessment gap analysis (Est €30,000, to be paid from the Bank budget)
2) Review of the Public Service Contract (Est €30,000. Donor to be determined)
3) Carbon Monetisation of Clean Urban Transport (Est for €200,000 and will be jointly administered with the Bursa Light Rail Project. Donor to be determined.
For business opportunities or procurement, contact the client company.
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