Project description
and objectives:
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In 2006 the EBRD has provided €15 million to finance the purchase of up to 30 new large buses for the municipal public transport company in Sibiu – Tursib - (the company), and to finance a street upgrading programme with the City of Sibiu (the city).
Currently, the EBRD is considering extending the financing to Tursib by additional €2 million, to complement the existing loan signed in 2006. The operation will enable the Company to purchase 10 new large buses in addition to the buses financed by the original loan
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Transition
impact:
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Demonstration effect
The Team will structure the loan without a full financial guarantee from the City, which would be one of the first such municipal loans in Romania. As such the Operation would allow the Bank to lend directly to a municipal transport company in Romania.
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Support to the further corporatisation of the Company and organisational improvements
Transition impact is delivered through outsourcing of non-core operations to realise efficiencies and a twinning programme with a “best in class” public transport operator.
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Client-Supplier Relationship through the Public Service Contract (the “PSC”)
The Operation supports the development of one of the first Romanian comprehensive PSCs for a public transport company. The PSC defines the scope of services provided by the Company and provides incentives for the Company to improve its financial and operational performance.
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The client:
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- Sibiu Public Transport Company – Tursib - (the “Company”)
- The City of Sibiu (the “City” or “Sibiu”)
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EBRD
finance:
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The project comprises the following facilities:
- Up to €5 million senior loan to the Company
- Up to €10 million loan to the City (of which EUR 5 million syndicated to a commercial bank)
- Up to €2 million additional finance to the Company
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Total project cost:
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The total cost of the project has been estimated at €20.4 million.
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Environmental impact:
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The project has been screened B/1. An environmental audit and analysis, undertaken by international consultants, confirmed that the street rehabilitation programme and the new buses to be purchased will comply with Romanian and EURO standards for air emissions. There are unlikely to be any significant environmental impacts associated with this operation and a number of very tangible environmental benefits are likely to arise. An environmental action plan was also developed and has been implemented to ensure compliance with both national and EU environmental, health and safety requirements.
The proposed project will continue to contribute to improving public transport reliability, safety and efficiency. The extension of the bus fleet will facilitate the reduction of noise and air pollution in the City.
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Technical
cooperation:
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Pre-signing
Technical and Environmental due diligence (€47,350 financed by the Government of Austria)
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Post-signing
A Public Transport Twinning programme between Tursib and a “best in class” public transport operator (€150,000- financed by the Government of Germany).
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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