Bursa Light Rail

complete

The EBRD is considering providing a senior loan of up to €70 million to the City of Bursa to finance the Bursa Light Rail (LRT) project. The Project will finance investments of the second phase of the Bursa LRT system to extend the existing LRT as the backbone of the City’s sustainable urban transport approach. The Project includes construction, mechanical works and procurement of new rolling stock. The project will address the need for the enhanced environmental infrastructure, energy efficiency via monetisation of carbon credits and institutional developments towards quality improvements and commercialisation of municipal services. The proposed Project is expected to result in transition impact in the following areas: Bursa Metropolitan Municipality (“BMM”). Senior loan of up to €70 million. The EBRD loan will be part of a multi-source financing package for the project which includes a €100 million EIB loan already signed. The Agence Francaise de Developpement (AFD) is considering a €30 million loan, with the remaining cost of the project to be covered by BMM. €247 million. The potential adverse environmental and/or social (E&S) impacts of the project are likely to be site specific and can be readily identified and addressed through adequate mitigation measures. Therefore, the Project has been categorised “B” as per the 2008 Environmental and Social Policy. The project was screened by the Turkish Ministry of Environment and Forestry (MoEF) and no EIA was required for the project. The E&S due diligence of the project was carried out by independent consultants and covers a significant portion of PR1’s project appraisal requirements. The client and its operations are generally in compliance with the applicable Turkish environmental, health and safety and labour requirements. The following issues and gaps that have not been addressed during the project E&S due diligence will be introduced in the revised due diligence report, which is currently under preparation: The ESAP will be part of the legal agreements between the City of Bursa and the EBRD. This PSD will be revised once the due diligence and ESAP are finalised. It is envisaged that the technical cooperation support will provide assistance with the following: 1) Environmental and Social Due Diligence and Gap Analysis (Est €20,000, client funded) 2) Technical Review of Service Contract and Benchmarking Improvement (Est €17,000) 3) Carbon Monetisation of Clean Urban Transport (Est €70,000) 4) Corporate Development of Burulas (Est €350,000)