Tbilisi Public Transport Project

complete

The objectives of the proposed project will be to: (i) finance municipal buses, spare parts and workshop equipment (ii) reform the regulatory framework for public transport in Tbilisi. Transition impact will be achieved in the following way: The Tbilisi Bus Company. EUR 5.0 million loan to the Tbilisi Bus Company. EUR 8.0 million. Project category B/1: The project involves purchase of 150 new midi buses and 50 second-hand buses replacing some 260 old buses (pre Euro standard) which are reported to be over 20 years old. The environmental impacts associated with the improvement of urban transport can be readily identified and addressed through adequate mitigation measures. The environmental impacts of the project will mainly be positive. Due diligence Visits by ED staff/consultants The Environmental Analysis and Audit of the existing facilities were carried out by independent consultants. A specialist from the Environment and Sustainability Department of EBRD also visited the facilities in February 2005 to scope the due diligence and hold initial discussions with the Company. Outcomes of due diligence and actions required The Environmental Analysis results indicated that environmental impacts of the project will be mainly beneficial. The new buses have less air emissions, fuel consumption and noise. The investment into buying new workshop equipment would also allow TMBE to monitor and verify exhaust emissions so that the new buses and any upgraded existing fleet buses can meet regulatory standards and be maintained and also assist in improving their performance. However, there are also environmental risks and potential liabilities associated with the past/current practices at the workshops/depots. The Environmental Audit identified improvements needed in management practises at the existing workshop/depot facilities. These risks and liabilities can be mitigated by implementing the mitigation measures defined in the Environmental Action Plan, which covers the following issues: There have been follow-up environmental audits of the project in 2007 and in 2008. The results indicated that while they have taken major steps in refurbishment of the facilities, they have not yet reached full compliance with their commitments in several areas including waste management, soil and groundwater investigations, fire and emergency response planning, and personal protective equipment. The Bank has been working with the Company on making additional progress in its commitments. Project monitoring and reporting The Company reports to EBRD annually on the measured environmental impacts and on the implementation of the mitigation measures. The Bank will evaluate the project's compliance with the applicable environmental and social standards during the lifetime of the project by reviewing these reports. EBRD environmental specialists will conduct monitoring visits to the project as appropriate. Pre-signing: Post-signing: