Timisoara Muni

completed

IFC proposes to provide an A loan to the Municipality of Timisoara, one of the largest Romanian municipalities. The Loan aims to support the Municipality in its European Union (EU) approved investment program of EUR 259 million covering over 32 projects across a wide range of sectors. While the EU program covers a multitude of projects, IFC’s proposed investment is aimed at supporting the Municipality’ s priority investments in selected projects included in the EU program. The 17 selected projects (the “Projects”) focus mainly on: i) transport; ii) district heating; and iii) social infrastructure, information technology (IT) and small-medium enterprises (SME) support. The main components for each sector have been identified as follows:Transport:Projects included in this sector aim at improving the transport infrastructure of the municipality in order to support economic and social growth. The program includes a wide range of initiatives to improve safety, urban mobility, public services in Timisoara. Specific selected projects include: Rehabilitation and extension of the tram/trolley lines;Modernization of the intermodal public transport stations (expansion of the current network of bicycles paths and stations) and public infrastructures along the Bega Canal banks; Introduction of traffic management and video surveillance;Road, bridge and underground passageway rehabilitation of the Michelangelo area; andModernization and rehabilitation (underground utilities, public lighting) of public spaces in the Citadel (e.g. ten streets and three squares – Union, Liberty, and St. George).Once completed, several projects will be handed over to RATT, the company that operates and maintains the Municipality transportation network while others will be maintained by Municipal departments and/or other companies in charge. District Heating:The projects in this sector aim to improve the quality of heat supply for the Municipality and reduce the associated environmental impacts by retrofitting hot water boilers at the Central Plant. Specific objectives include: i) increase energy reliability and efficiency of the centralized heating systems; ii) reduce air pollution in the urban district heating system by lowering emissions of NOx through the modernization of the thermal energy system; and iii) reduction of greenhouse gasses (GHG) as a result of increased energy efficiency of the heating system. Improvements include, among others, the upgrading of two hot water boilers, refurbishment of steam boilers and rehabilitation of transport pumps. Once improvements are completed, the equipment will be handed over to COLTERM, the company that operates and manages the Municipality district heating. Social Infrastructure, IT and SME support:The projects in this sector focus on improving and developing infrastructure to support economic and social activities and know-how transfer for the benefit of the municipal population, and increased competitiveness of SMEs. Specific selected projects aim at the: Rehabilitation, modernization and furnishing of several existing buildings providing health and social services belonging to the Municipality; andConstruction of two new facilities for supporting IT and SME activities.The current status of individual projects ranges from project’s bidding phase to the final stages of construction. IFC’s appraisal considered environmental and social management plans and gaps, if any, between these plans and IFC requirements. Where necessary, corrective measures intended to close these gaps within a reasonable period of time, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the Project is expected to be designed and operated in accordance with Performance Standards objectives