Kyiv City Traffic Management

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The proposed project will comprise of a senior loan of EUR 30 million (or its equivalent in Ukrainian Hryvnya) to the city of Kiev or one of its wholly owned municipal companies. The Loan will finance the design and implementation of an Active Traffic Management System and Road Improvement Programme in the city of Kiev, as part of the overall City Transport Development Strategy. System operation is envisaged to be operated in line with best international practice. In 2007 the EBRD lent EUR 100 million to the two municipal transport companies of the City for the purchase of new buses, trolleybuses and metro trains. The Active Traffic Management System, coupled with specific junction and corridor improvements, will complement and expand upon an initial city-planned and financed Urban Traffic Control (UTC) system. The investments planned here will introduce changes to the current transport system in the city that will enable a higher level of overall travel capacity by increasing vehicle throughput per lane kilometre, a lowering of congestion levels during daily peak hours, a lowering of emissions levels, lower accidents rates, and increase travel speeds for both private and public transport modes. The project will further contribute to the institutional strengthening of the city in respect of procurement and contact supervision. An international consultant will conduct a pre-feasibility study for Dnipro Tunnel and advise on the Public Private Partnership structuring. Transition impact is expected to be achieved through: (i) outsourcing traffic and street management in the city centre to a specialist private traffic management company. (ii) the active traffic management approach will include the design of pilot projects to introduce managed pricing on congested corridors as a means of internalising the economic cost caused by individual motorists on congested urban corridors, while at the same time encouraging the use of high-capacity public transport modes as the most efficient means of accessing the city centre. (iii) Preparation of best-practice PPP structuring for a potential major new tunnel facility for Kiev, as well as the preparation of a parking strategy to proper pricing in the management of on- and off-street parking in the city’s high-demand areas, both of which should lead to the launching of a PPP tendering processes in the near term. The city of Kiev and its municipal company. EUR 30 million. Around EUR 33 million. Screened B/1 (re-screened from C/1).The re-screening was due to the fact that it has emerged that the Project will also involve some physical activities on installing about 90 overhead gantries as well as fibre optic cable on busy roads in proximity to residential areas. An independent environmental analysis of the proposed project and an audit of the existing facilities as well as a corporate environment capacity were conducted by ERM, independent environmental consultants, in July 2008. The due diligence has identified that, while the project will mainly result in environmental and health and safety improvements related to the reduction of air emissions from cars and improved road safety for motorists and pedestrians, there are some risks associated with the installation of overhead gantries. The due diligence has also identified some non-compliance of the Company with the requirements of the Ukrainian environmental legislation; e.g. in the area of waste management; and the company has no internal or external audit or assessment capability or procedures in place and lacks corporate environmental, health and safety standards or performance goals to monitor its performance. Mitigation measures were included into the ESAP, which was approved by the Client in December 2008. In particular, ESAP stipulates that the Company need to commission an environmental assessment on the proposed project and to obtain all relevant permits, and conduct public consultations in compliance with the Ukrainian regulations. Copies of environmental assessment report and permits shall be submitted to EBRD at least 3 months prior to disbursement of the EBRD loan. A summary of the Project was also released locally in Ukrainian language prior to the Final Review of the Project by the bank. As of now, the project has not as yet undergone an environmental assessment and public consultations, due to the fact the design specifications of the proposed traffic management installations have not been finalised to date or locations of the gantries identified. The Company is currently in the process of selecting phase for its design and implementation consultant. This PSD will be updated once the Bank reviews the environmental assessment and public consultation reports that are required under the Ukrainian legislation. Post-signing