Balti Trolleybus Project

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Translated version of this PSD: Romanian The EBRD is considering providing a loan of up to € 3 million to the Municipal Enterprise “Balti Trolleybus Department” (the “Company”) to improve the quality of public transport services and for the modernisation of the trolleybus fleet in the City of Balti. The Project consists of acquiring up to 23 new trolleybuses, spare parts, power supply infrastructure components and purchasing essential maintenance equipment. The project will include commercialisation of trolleybus services through signing a Public Service Contract (“PSC”) between the City and the Company to improve the services of the Company as well as a corporate development programme for the Company through a twinning arrangement. Transition impact will be delivered through the following: Municipal Enterprise “Balti Trolleybus Department”, a municipally-owned trolleybus company serving the City of Balti. The City of Balti is the country’s second largest in terms of area and economic importance, and is the third largest town in terms of population (ca. 149,000 inhabitants). EBRD expects to provide a loan to the Company of up to €3 million, guaranteed by the City of Balti. The project is expected to be co-financed by the EU Neighbourhood Investment Facility via a capital investment grant of€1.6 million. Total project cost amounts to €4.6 million. The Project has been categorised B in accordance with the Bank’s Environmental and Social Policy 2008. Environmental and social due diligence (ESDD) has been undertaken by the Bank’s Environment and Sustainability Department, based on a review of the Company’s corporate management systems; relevant information provided by the Company; and a site visit and discussions with the Company’s personnel to evaluate the current operational performance and the risk management plans for the planned investment programme. The investigation showed that the potential future adverse impacts of the project will be site specific and addressed through appropriate mitigation measures. The transaction will enable Balti municipality to modernise its trolleybus fleet and, hence, improve the quality of public transport services. The project implementation is limited to urban areas within the boundaries of the City and no sensitive ecological receptors or protected zones are affected. It is confirmed that the project will not have adverse social impacts to local communities or other project affected parties, while a number of very tangible environmental and social benefits are likely to arise. The due diligence confirmed that the Company has efficient public communication, consultation and disclosure policies that in general meets the EBRD's requirements. In order to avoid, minimise and mitigate the potential adverse Environmental and Social (E&S) impacts of the project and ensure full compliance with national regulations and EBRD's Performance Requirements (PRs) an Environmental and Social Action Plan (ESAP) has been developed to address the necessary improvements in the Company's E&S management systems. The project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary. Pre-signing Post-signing