Project Description

A senior loan of up to €10 million ( in Kazakhstan Tenge equivalent) to a municipal tram operating company in the city of Pavlodar. The funds will finance the procurement of up to 25 modern energy-efficient battery powered trams to further modernise the company's obsolete tram fleet .
The project is expected to be co-financed by a €4 million loan from the Clean Technology Fund under Global Energy Storage Program (GESP) and the regional administration, Akimat of Pavlodar Oblast, for €2 million equivalent.

Project Objectives

The project is the continuation of the Bank's involvement in the improvement of tram operations in Pavlodar in terms of quality, reliability, sustainability and environmental, health and safety standards. The project contributes to the reduction of GHG emissions through an increase in energy efficiency. It is envisaged that the new tram fleet will have autonomous drive capacity of up to 20 km thus to allow the company to increase the share of energy-efficient trams operating daily from 30 per cent currently to 50 per cent. This will make the public transport sector of the city more sustainable and resilient to power shortages. The project will contribute to a city transport modal shift from private vehicles towards environmentally friendly public transport.

Transition Impact

ETI score: 60

Transition Impact is expected to arise from the Green Quality supported by reduced energy consumption and, hence, indirect reduction of GHG emissions of trams to be procured under the project.

Client Information

TRAM MANAGEMENT COMPANY OF THE CITY OF PAVLODAR

The company is a municipal tram operator in Pavlodar owned by the Akimat of Pavlodar Oblast through the Social-Entrepreneurial Corporation "Pavlodar" JSC.

EBRD Finance Summary

EUR 10,000,000.00

Senior loan of up to €10 million (in Kazakhstan Tenge equivalent). The loan will be backed by project support undertakings from the Akimats of Pavlodar Oblast and the city of Pavlodar in a form of Project Support Agreement (PSA). This will be signed between the Bank, the Akimat of the city of Pavlodar, the Akimat of Pavlodar Oblast, Social-Entrepreneurial Corporation "Pavlodar" JSC and the Company.

Total Project Cost

EUR 16,000,000.00

Additionality

- Financing Structure: the Bank will provide long-term financing, which is presently not available from local commercial banks.
- Standard-setting: helping projects and clients achieve higher standards. The Company will pursue higher inclusion standards and the Project will follow the EBRD PP&Rs for publicly owned clients.

Environmental and Social Summary

The proposed project has been categorised B in accordance with the 2019 EBRD Environmental and Social (E&S) Policy, as the potential impacts are expected to be site specific and readily identifiable and addressed through mitigation measures.
The Project's Environmental and Social Due Diligence commenced in June this year and includes an independent third party environmental and social audit to assess the Client's management capacity and systems to manage environment, health, safety and labour issues in its operations as well as an analysis of the potential (future) E&S impacts and benefits. It will also assess the Client's ability to carry out the Project in compliance with the Bank's Performance Requirements.
An Environmental and Social Action Plan (ESAP) will be prepared for the Project. A Stakeholder Engagement Plan will also be developed that will include a grievance mechanism as well as information on environmental and social performance and a summary of the agreed ESAP will be released to stakeholders.
This PSD will be updated when the results of due diligence are known.

Technical Cooperation and Grant Financing

TC1: Project Technical Due Diligence, including the review of technical specifications for the trams. The total budget for assignment is up to € 75,000 financed by the EBRD Shareholders' Special Fund (SSF).
TC2: Environmental and Social Due Diligence, including developing an Environmental and Social Action Plan ("ESAP"). The total budget for assignment is up to € 30,400 financed by SSF.
TC3: Advance Procurement Support for the new trams. The total budget for assignment is up to € 42,000 financed by SSF.
TC4: Project Implementation Support to facilitate the timely and effective implementation of the Project, including all aspects of procurement disbursement and E&S requirements. The estimated cost of the TC is up to € 150,000 to be funded by an international donor or SSF.

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.