Sava River Crossing

complete

Project objectives: (a) increase river crossing capacity, in order to relieve traffic congestion, noise and traffic-related air pollution; (b) strengthen the City’s capacity to plan, prioritise, budget and monitor major investment projects; (c) support the City’s ongoing efforts to increase private sector participation in local transport, including parking, and (d) to provide a flagship project procured and implemented using best international procurement practice. Infrastructure Investment Construction of a cable-stayed bridge over the River Sava, plus approach roads. Institutional strengthening Private Sector Participation (PSP) The proposed project will expand the Serbian market for infrastructure services, including local transport. The Bank TC will scope PSP opportunities in the parking sector, which is currently managed by a single municipal company. The TC willl also identify other PPP opportunities in local transport. The Project will outsource the maintenance of the new road and bridge infrastructure. Skills transfer-Project Management Unit The Bank’s involvement, and support by the European Agency for Reconstruction to the Project Management Unit, will transfer skills aimed at improving the City’s strategic capital investment planning, budgeting and monitoring, and provide better ‘Value for Money’. This result will be achieved through making the PMU a single point of control over the City’s fragmented capital investment programme. The PMU will work across all economic sectors and thus disperse skills well beyond the project. Demonstration effect – procurement & contracting Central local fiscal relations The Bank continues to have an effective policy dialogue with Central Government concerning the reform of central-local fiscal relations. The Bank has assisted municipalities, including Belgrade, to maintain a level of autonomy and control over their own budgets and financing decisions, and secure predictable revenue streams covering current and capital expenditures. In addition to the above transition impact objectives set out in the initial loan, the following objectives have been identified for the loan extension facility: Performance-based Management and Maintenance of Roads contracting In contrast with Belgrade’s common usage of unit-cost contracting, output-based road and bridge maintenance or ‘Performance-based Management and Maintenance of Roads’ (PMMR) will be developed with the relevant City agencies (Beoland and the Traffic Secretariat) to achieve better value for money. The PMMR approach is centred around the concept of pre-determining road serviceability standards based on performance levels (e.g., smoothness of surfaces, cleanliness of drainage systems, condition and appearance of signage, etc.), which are then tendered for with private sector contractors. Over time, this model will foster a new private road service industry based on contractors who begin to specialise in the PMMR contracting. The City of Belgrade. In addition to EUR 69.6 million (out of which EUR 20 million will be syndicated), the EBRD will extend additional EUR 60 million directly to the City of Belgrade for the bridge construction (Project number 41055). There will be no sovereign guarantee. Total project costs are estimated at EUR 343.2 million. European Investment Bank has provided a loan of EUR 70 million for the approach roads. Screening categories and rationale for classification The Project has been classified A/0 requiring a full Environmental Impact Assessment (EIA). The EIA was carried out by international consultants in accordance with both Serbian and European Union (EU) legal requirements and Bank policy. Information reviewed The EIA and associated public consultation, prepared by the Agency for Land Development and Construction of Belgrade and its Advisers, can be viewed at the Sponsor’s website: www.beoland.com/ostalo/ebrd.html. The Executive Summary of the EIA is available at http://www.ebrd.com/enviro/eias/index.htm. Consideration of alternatives The proposed alignment was selected from three alternatives after a combined evaluation of technical, economic and environmental criteria. Key environmental issues and mitigation measures The construction will address Belgrade’s most significant environmental problem, namely deteriorating accessibility, traffic congestion, noise and air pollution caused by insufficient river crossing capacity. A number of concerns were raised regarding the potential impact of the operation relating to protection of natural resources, and cultural and historical monuments; effects on flora and fauna; increased risk to human health; the effect of bridge illumination on bird species; and the negative effect on recreation on Ada Ciganlia. All of the issues raised as a result of the EIA and consultation process will be taken into account in the preparation of the Final Detailed Design and included in the Environmental Management and Monitoring Plan (below). Environmental management and monitoring An Environmental Management Plan (EMP) is being developed to define the environmental measures and procedures to prevent, minimise and mitigate adverse impacts and to ensure compliance with applicable environmental standards during both the construction and operation of the construction. The EMP will define necessary mitigation measures, environmental monitoring plan and institutional measures to be taken during project construction and operation. The EMP will be finalised when the detailed design of the project is completed. It may need to be revised during the course of the project implementation. The environmental monitoring of the key impacts identified in the EIA will ensure the efficiency of the planned mitigation measures. Disclosure of information and public consultation Two public Scoping Meetings were held to identify relevant issues to be addressed in the EIA. As a result, it was decided to move the bridge alignment from the centre to the tip of Ada Ciganlija Island. The second Scoping Meeting was held in June 2005 and was attended by over 100 representatives, including NGOs. The results of both Scoping Meetings confirmed strong support for the Project, but some localised concerns that are being addressed. All of the issues raised at the meetings will be taken into account in the preparation of the Final Detailed Design. A further Public Meeting will take place in November 2005 in accordance with Serbian legal requirements. The Sponsor will organise on-going disclosure of information on the progress of the project and its environmental impacts throughout the project implementation on its website, in annual environmental reports and through periodic press releases. Supervision and reporting The Sponsor will report to EBRD annually on the measured environmental impacts and on the implementation of the EMP. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing these reports. EBRD environmental specialist may conduct monitoring visits to the site when and if deemed appropriate. In addition, independent environmental monitoring audits may be carried out. There is an Environmental and Social Impact Assessment available for this project.