Ukraine Public Transport Framework

approved

Sub-projects signed under this framework The EBRD is considering a € 100 million Ukraine Public Transport Framework consisting of municipal-guaranteed loans to public transport companies in Ukraine to facilitate critical improvements in public transport infrastructure in Odessa, Chernihiv, Chernivtsi and several other cities across Ukraine, with prime focus on transport renewal and associated efficiency gains. EBRD will sign a Loan Agreement with a respective company and a Guarantee and Project Support Agreement with a respective city in each case. Each loan will be guaranteed by the respective municipality. TC funds will be mobilised to support project preparation, project implementation and institutional support. Framework for Markets: Transition impact will derive from establishing contractual arrangements in the form of a Public Service Contract (“PSC”) between transport companies and municipalities. The PSC will enable service support payments based on a price per vehicle-kilometre or passenger-kilometre and the implementation of an agreed service plan. In addition, new route tendering rules will be adopted by each municipality, somewhat reducing the discrimination between public and private operators. Tariff reforms will be discussed with each client to target improvements in financial sustainability from fare revenues. Demonstration of Successful Restructuring: Under the proposed framework, participating companies are expected to implement restructuring measures supported by TC-financed Corporate Development Programmes. These measures are supposed to result in improvements in financial management; investment planning, organisational efficiency, customer relations management and most importantly cost reductions and improved financial sustainability. Setting standards for corporate governance and business conduct: the participating companies will improve the disclosure standards, disclosing information on financial and operating performance, including, inter alia, publication on the website of annual IFRS financials, investment summary and performance summary against targets specified in the PSC. Information on each participating company is provided separately for each project € 100 million € 107.7 million The Framework is not categorised; however, each project under the Framework will be categorised at concept review stage and will undergo separate Environmental and Social Due Diligence (“ESDD”). The Framework will include municipal projects that will facilitate critical improvements in public transport infrastructure in several cities across Ukraine, with prime focus on improving quality of services and efficiency of operations. The projects under the Framework will contribute to improving accessibility and mobility for all user groups, improve air quality in the participating municipalities and improve overall quality, safety and efficiency of urban transportation. The ESDD for each project will be carried out by an independent consultants as part of the Feasibility Study and will include an assessment of potential Environmental and Social (“E&S”) impacts – both adverse and beneficial - and an E&S audit of the management systems, existing operations and facilities of each participating Client with specific attention to the maintenance depot, labour practices, road safety and driver training, including electrical safety issues. Environmental and Social Action Plans and Stakeholder Engagement Plans, including a grievance mechanism, will be developed to structure the projects to meet EBRD PRs. If any of the sub-projects are categorised "A" requiring an ESIA, they will be submitted to Board for approval regardless of size of the loan. Pre-Signing: Post-Signing: Information on each participating company is provided separately for each project under the framework.