The EBRD is considering providing a loan to finance the special purpose vehicle (the “SPV” ) set up by the consortium led by Mota Engil Group, a leading Portuguese company active in construction, transport and environmental infrastructures concessions, for the development and operation of the underground parking facility in the City of Wroclaw, Poland at the Nowy Targ Square (the “Project”). The Project is designed for 331 car places and its construction is to be completed by July 2013. The proposed project is the first sub project under a parking framework contemplated with the Mota Engil Group.
This will be the first public-private partnership undertaken by the City of Wroclaw and one of very few PPP projects implemented in Poland. If successful, the Project will provide a platform for other projects based on the PPP formula, not only in the parking sector but in other sectors with high visibility and transition impact potential. The Wroclaw parking project can pave the way for the other parking projects contemplated by other cities in Poland. Therefore, a well structured Project could constitute a great example of successful cooperation with private partners. Further transition impact is also expected to come from transfer of know-how and maintenance as well as corporate governance standards.
The financing will be provided to the SPV set up by the following consortium members:
- Mota Engil Central Europe S.A.
- Mota Engil Engenharia e Construcao S.A.,
- Empreendimentos e Exploracao de Estacionamentos S.A.,
- ESLI – Parques de Estacionamento S.A., and
- IMMO Park Sp. z o.o.
The Bank’s financing of the Project will encompass a senior loan to the SPV of up to€7.8 million equivalent
The total project costs are estimated at €11.2 million equivalent
The Project was Categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures.
The Bank's environmental and social due diligence consisted of a site visit by ESD environmental specialist to Wroclaw and interviews with key individuals responsible for Environment, Health and Safety, Labour and Human Resources within Mota Engil Group and a review of EBRD Corporate E&S. The due diligence included meetings with the local authorities, including the local urban planning authority and office of the chief conservator.
The initial project was for a much larger development (circa 800 cars) and a number of complaints had been received by the developer and authorities as part of the local planning and Environmental Impact Assessment (EIA) process. The Project has since been reduced in size and a number of local concerns have been integrated into the designs to limit local impacts. This includes the size of the car park as well as retention of an old WWII shelter. Specific working conditions have also been outlined during construction period to limit any nuisance to local residents. Overall, the development of the project will help to reduce congestion in the city and allow for the development of a new public space. A final positive decision has been issued with respect to the building permit.
The due diligence confirmed that Mota Engil Group has adequate systems in place to manage their environmental, health, safety and HR impacts and that the project fully complies with the Bank’s Performance Requirements (PRs). Mota Engil Group has the institutional capacity to fully implement the Banks PRs.
Based on the EHSS due diligence an Environmental and Social Action Plan (ESAP) has been developed and will be agreed with Mota Engil Group prior to Board Consideration to ensure ongoing compliance with the Banks PRs. The SPV will provide the Bank with regular reporting on the implementation of the ESAP. The SPV is committed to comply with all PR's for their ongoing and future activities.
The Bank will monitor the SPV’s environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The SPV will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.
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