Yerevan Street Lighting Project

Location:

Armenia

Project number:

46437

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Target board date:

06 May 2015

Status:

Disbursing

PSD disclosed:

06 Mar 2015

Translated version of this PSD: Armenian

Project description and objectives

The EBRD is considering financing a project aimed at the rehabilitation and modernisation of the street lighting network in the Armenian capital city, Yerevan. The key project components include 80 km of underground cabling in primary and secondary streets, the replacement of existing lighting fixtures with modern, energy efficient technology, and the installation of a central lighting-management system with automated control and energy monitoring.
 
The proceeds of the EBRD loan will finance a pilot project to refurbish the street lighting network of 28 streets in Yerevan.
 

Transition impact

1. Successful private sector participation and institutional strengthening:
 
The Project will be contracted on a design-install-maintain basis by the company selected following a transparent tendering process. The winning bidder will need to present energy saving targets, carry out the equipment installation and ensure a multi-year performance guarantee for the installed solution.
 
2. Demonstration of new replicable behaviours/skills related to the introduction of the best available technology:
 
The Project includes the introduction of advanced sustainable energy techniques, compliant with international best practice. The reduction in the use of mercury-based lighting fixtures will reduce environmental hazards at landfills. Better illumination of the Yerevan streets will improve road safety, potentially reduce crime rates and contribute
to improving social behaviour in the city.
 
Transition benchmarks include:
 
(i) replication of LED-based street lighting solutions in at least two other
municipalities in the country, or in the wider Caucasus region if necessary to
find sufficiently large municipalities.

(ii) replication of multi-year performance-based street lighting contracting to the private sector in at least two other municipalities in the country or in the wider Caucasus region if necessary to find sufficiently large municipalities.
 
The expected transition impact rating is ‘moderate to good’.

The client

The Borrower will be the Republic of Armenia. Implementation of the investment will
be the responsibility of Yerevan Municipality’s Street Lighting Company.
 

EBRD finance

A sovereign loan of up to US$ 4 million to be complemented by a grant component
of up to US$ 2 million to be funded by an international donor (exact source to
be confirmed).
 

Total project cost

The total project cost is estimated to be up to US$ 7 million including technical
cooperation.
 

Environmental and social categorisation, impact, and
mitigation

The proposed Project has been categorised B in accordance with the 2014 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site-specific, readily identifiable and addressed through mitigation measures.

The environmental and social due diligence for the Project, which is ongoing, includes an independent third-party environmental and social audit to assess the Client’s management capacity and systems to manage environmental, health, safety and labour issues in its operations and an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client’s ability to carry out the Project in compliance with the Bank’s Performance Requirements.
 
An Environmental and Social Action Plan (ESAP) will be prepared for the Project, and a Stakeholder Engagement Plan will be developed that will include a grievance mechanism and information on environmental and social performance and a summary of the agreed Action Plan will be released to stakeholders.

This PSD will be updated when the results of due diligence are known. 

Technical cooperation

A technical scoping assignment to ascertain the feasibility and scope of the Project from technical, engineering and institutional perspectives was financed by the TaiwanBusiness-EBRD Technical Cooperation Fund (€260,000). This assignment is completed.
 
In addition, credit analysis was carried out for the Project (€25,850). This technical cooperation was funded from the EBRD’s internal resources. This assignment is completed.
 
In the post-signing stage two technical cooperation assignments are foreseen: 
 
  • Project implementation support: International consultants to assist the project implementation unit in engineering design, preparation of tenders, procurement and evaluation, contract award and administration, financial control, project management and reporting (€315,000), to be financed by an international donor or the EBRD Shareholder Special Fund (SSF).

     
  • City capacity-strengtheningsupport: Consultancy to support Yerevan Municipality in institutional strengthening and capacity-building through training in monitoring the street lighting operations and maintenance contract (€225,000), to be financed by an international donor or the SSF.
 

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.