Hebros Bus Urban Transport

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The EBRD is considering extending a loan of up to EUR 6 million to Hebros Bus, an urban transport company based in Plovdiv. The project would aim to assist Hebros Bus in becoming the first Bulgarian private transport company that provides high quality services according to EU environmental, health and safety standards. The loan financing would be used for the purchase of 30 new compressed natural gas (CNG) buses to service bus routes in the City of Plovdiv. The Project would also assist the City of Plovdiv in adopting an EU-compliant Public Service Contract (“PSC”) for all public transport operators in the City (i.e. beyond the Company) and introducing an electronic ticketing system that will improve the transparency and accountability of the Plovdiv urban transport system. Hebros Bus Ltd (the "Company"), a privately owned limited liability company based in the City of Plovdiv, providing urban and interurban transport services. Loan of up to EUR 6 million EUR 7.6 million. 1. Screening category Screened B/1. Environmental impacts of the renewal of the Company's bus fleet will mainly be positive. Environmental impacts associated with the project have been identified, assessed and addressed through adequate mitigation measures. The project involves existing operations and, therefore, an environmental audit of the bus depots and workshops was carried out. A corporate environmental review of the bus company, including its current practice for disposal of old buses, was also undertaken. 2. Due diligence undertaken and outcomes An environmental review and analysis of potential issues as well as an Environmental Audit of the Company's facilities has been carried out by independent consultants, POVVIK-OOS Ltd. The Environmental Analysis has confirmed that the new CNG buses will comply with Bulgarian standards as well as Euro 5 and EEV standards. The vehicles also include spacious areas designed for prams and wheelchairs including tilting platforms ensuring access to passengers with reduced mobility and wheelchair users. The Corporate review showed that the Company has been successfully certified under ISO 9001 and 14001 quality and environmental management standard as well as OHSAS occupational health and safety standard. The audit of the existing bus depot and garage facilities identified no significant issues, but resulted in recommendations for a range of minor improvement measures. Based on the results of the environmental due diligence, an Environmental Action Plan (EAP) has been prepared to mitigate potential environmental risks and liabilities related to the Client's bus depot/workshops and the practices for the disposal of old buses. The Company will need to disclose locally a summary of the relevant environmental issues associated with the project and the mitigation measures by the time of Final Review, in accordance with the Bank's public disclosure requirements for category B projects. 3. Implementation requirements The Company will need to: None. Iliyana Tsanova, tsanovai@ebrd.com