Georgia: Tbilisi Railway Bypass Project

cancelled

The EBRD is considering providing a senior loan of up to €100 million (equivalent in Swiss Francs) to co-finance the construction of a new railway route bypassing the central area of the city of Tbilisi. The project’s aim is ultimately to improve the efficiency and safety of rail operations within the city of Tbilisi enabling relocation and consolidation of the existing rail facilities located in the centre of the urban area. This project will also provide an impetus for the redevelopment of freed up territories and reintegration of the city. The project will contribute to transition in the following ways: Georgian Railway LLC, the Georgian state-owned railway company. EBRD will provide a senior loan of, equivalent in Swiss Francs of, up to EUR 100 million. The estimated project cost is up to EUR 300 million. Georgian Railway LLC has requested the European Investment Bank to co-finance the Project and will complement the banks' loans with their own funds. Categorisation and process The Project is categorised as “A” (EBRD’s 2008 Environmental and Social Policy) requiring a full Environmental and Social Impact Assessment (ESIA). The ESIA has been finalised and disclosed on 16 October 2009. A Stakeholder Engagement Plan and a Resettlement Framework have also been prepared. EBRD (with German Technical Cooperation funds) provided a consultant to assist GR and the local consultants in developing the ESIA. The detailed design of the Project has included a detailed alternative analysis in the early phase of design development, which is reflected in the ESIA. A preferred route has been selected by Georgian Railway, which minimises environmental impacts and costs. Scoping stage consultation took place in July 2009 and allowed stakeholders to receive preliminary information and provide comments, including on the various routing options being considered at the time. Further public consultation took place at the end of November and early December 2009 within the framework of the Georgian regulatory process and in compliance with EBRD requirements. An Environmental and Social Action Plan (ESAP) describing all mitigation measures with deadlines and responsibilities was agreed with Georgian Railway and will be covenanted in the Project legal documentation. Main Environmental and Social Issues Main issues include the following New bypass Removal of the old line in Tbilisi centre Consultation and disclosure The draft ESIA was disclosed for 120 days on 16 October 2009 in both English and Georgian. A Stakeholder Engagement Plan was prepared as part of the ESIA. In line with the Georgian regulatory permitting process and EBRD requirements, scoping took place in July 2009, and four public consultation meetings took place from 30 November to 4 December 2009, and direct engagement also took place with Non Governmental Organisations and with people affected by potential relocation. Assistance to GR in the development of the ESIA and associated capacity building. Germany. About EUR 50,000. Grant to finance environmental mitigation measures scope and technical assistance to finance the preparation of environmental ‘clean-up’ investigation study and the master plan land development. EU Neighbourhood Investment Facility. EUR 8.5 million.