Local Roads Reconstruction and Upgrade Project

repaying

Translated version of this PSD: Montenegrin The EBRD is considering providing funds to finance the reconstruction of the Lubnice – Jelovica – Jezerine local road, selected as a priority from the local roads network in order to upgrade it to regional road status. The proposed Project is expected to result in transition impact in the following areas: 1. Expanding Road Maintenance Market: 2. Promoting market functioning and efficiency through a dedicated road safety programme which will include: Government of Montenegro. Sovereign loan programme of up to EUR 25 million, structured in two loans of EUR 5 million and EUR 20 million, respectively. EUR 30.2 million. The Project has been categorised B in accordance with EBRD's 2008 Environmental and Social Policy. An initial site visit undertaken by the Bank’s environmental specialist and Environmental and Social Due Diligence (the “ESDD”) carried out by an independent consultant included a review of the existing Project documentation and publicly available information and meetings with design consultants and the Client. The ESDD ascertained that the project involves partial re-alignment and upgrading of 8.5km long section of an existing two-lane road and construction of a new tunnel (approximately 2.5 km in length) and that any adverse environmental and/or social impacts associated with the project are likely to be site-specific and readily identified and mitigated. The ESDD identified that a part of the existing road section to be upgraded will for a short distance encroach the buffer zone of a protected area, the Biogradska Gora National Park, but showed that impacts on the protected area would be localised and can be mitigated through design and adherence to good international practice in project preparation and construction. ESDD also ascertained that the Project will require limited land acquisition, but that no resettlement is envisaged at this stage. A comprehensive Environmental and Social Action Plan (the “ESAP”) has been developed for the project to address the ESDD findings to ensure the Project complies with EBRD Performance Requirements. Some elements of the ESAP (mainly related to road safety, environment, health and safety risks management and monitoring during constructions stage) will be also addressed through project supporting TCs. A number of further studies and assessments are required to be undertaken to determine the specific mitigation measures; however, these can be completed only once the detailed design of the proposed tunnel is known. Additional studies will include: baseline habitat, flora and fauna surveys, baseline social surveys, hydrological and hydrogeological studies, livelihood restoration framework, if deemed required biodiversity/flora & fauna management plan, stakeholder engagement plan. Requirements for development of specific further studies and identification and implementation of detailed environmental and social mitigation measures and management plans satisfactory to the Bank are conditions precedent to disbursement of the Bank’s loan to any construction activity. This section of Project Summary Document will be updated upon completion of the additional studies to summarise the findings and additional mitigation measures. It is envisaged that technical cooperation support will provide assistance with the following: 1. Assistance with development of a performance based maintenance contracting strategy and preparation of model performance based maintenance contract; 2. Assistance with development of a road safety programme; 3. Assistance with review of the detailed design, tender documentation preparation and tendering process; 4. Road safety audit of the Project road sections.