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Project summary document

Project name:Sava River Crossing
Country:Serbia
Project number:34913
Business sector:Municipal and environmental infrastructure
Public/Private:Public
Environmental category:A
Board date:29 November 2005
Status:Signed
Date PSD disclosed:
Date PSD updated:
22 September 2005
29 June 2006
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Municipal and environmental infrastructure homepage
Sava River Crossing [Environmental Impact Assessment]
EBRD lends Belgrade €70 million to build bridge [Press Release]

Project description
and objectives:

Project objectives:

(a) increase river crossing capacity, in order to relieve traffic congestion, noise and traffic-related air pollution;

(b) strengthen the City’s capacity to plan, prioritise, budget and monitor major investment projects;

(c) support the City’s ongoing efforts to increase private sector participation in local transport, including parking, and

(d) to provide a flagship project procured and implemented using best international procurement practice.

Infrastructure Investment
Construction of a cable-stayed bridge over the River Sava, plus approach roads.

Institutional strengthening

  • The proposed project will support a Project Management Unit (“PMU”) to manage the City’s Capital Investment Programme, in accordance with best international practice. The PMU will act as a central focus for the strategic planning, management and monitoring of all major City investments (all sectors).

  • The proposed project will include technical co-operation to: (a) scope opportunities for private sector participation in parking through concessions or other PPP arrangements, and identify other PPP opportunities.

Transition impact:

Private Sector Participation (PSP)
The proposed project will expand the Serbian market for infrastructure services, including local transport. The Bank TC will scope PSP opportunities in the parking sector, which is currently managed by a single municipal company. The TC willl also identify other PPP opportunities in local transport. The Project will outsource the maintenance of the new road and bridge infrastructure.

Skills transfer-Project Management Unit
The Bank’s involvement, and support by the European Agency for Reconstruction to the Project Management Unit, will transfer skills aimed at improving the City’s strategic capital investment planning, budgeting and monitoring, and provide better ‘Value for Money’. This result will be achieved through making the PMU a single point of control over the City’s fragmented capital investment programme. The PMU will work across all economic sectors and thus disperse skills well beyond the project.

Demonstration effect – procurement & contracting

  • The proposed project will apply the EBRD Procurement Policies and Rules, which will promote open, transparent tendering without domestic preference.

  • The procurement & contracting strategy aims to balance economy with providing opportunities for local firms to tender for contracts for which they are qualified, which would help the industry to regain a place in international markets (lost during the international embargo).

  • The proposed project aims to introduce a ‘design & build’ approach to municipal infrastructure delivery.

Central local fiscal relations
The Bank continues to have an effective policy dialogue with Central Government concerning the reform of central-local fiscal relations. The Bank has assisted municipalities, including Belgrade, to maintain a level of autonomy and control over their own budgets and financing decisions, and secure predictable revenue streams covering current and capital expenditures.

The client:

The City of Belgrade.

EBRD finance:

A municipal loan of up to EUR 69.6 million extended directly to the City of Belgrade, of which EUR 20 million will be syndicated. There will be no sovereign guarantee.

Total project cost:

Total project costs are estimated at EUR 161.1 million.

Environmental impact:

Screening categories and rationale for classification

The Project has been classified A/0 requiring a full Environmental Impact Assessment (EIA). The EIA was carried out by international consultants in accordance with both Serbian and European Union (EU) legal requirements and Bank policy.

Information reviewed

The EIA and associated public consultation, prepared by the Agency for Land Development and Construction of Belgrade and its Advisers, can be viewed at the Sponsor’s website: www.beoland.com/ostalo/ebrd.html. The Executive Summary of the EIA is available at http://www.ebrd.com/enviro/eias/index.htm.

Consideration of alternatives

The proposed alignment was selected from three alternatives after a combined evaluation of technical, economic and environmental criteria.

Key environmental issues and mitigation measures

The construction will address Belgrade’s most significant environmental problem, namely deteriorating accessibility, traffic congestion, noise and air pollution caused by insufficient river crossing capacity. A number of concerns were raised regarding the potential impact of the operation relating to protection of natural resources, and cultural and historical monuments; effects on flora and fauna; increased risk to human health; the effect of bridge illumination on bird species; and the negative effect on recreation on Ada Ciganlia. All of the issues raised as a result of the EIA and consultation process will be taken into account in the preparation of the Final Detailed Design and included in the Environmental Management and Monitoring Plan (below).

Environmental management and monitoring

An Environmental Management Plan (EMP) is being developed to define the environmental measures and procedures to prevent, minimise and mitigate adverse impacts and to ensure compliance with applicable environmental standards during both the construction and operation of the construction. The EMP will define necessary mitigation measures, environmental monitoring plan and institutional measures to be taken during project construction and operation. The EMP will be finalised when the detailed design of the project is completed. It may need to be revised during the course of the project implementation. The environmental monitoring of the key impacts identified in the EIA will ensure the efficiency of the planned mitigation measures.

Disclosure of information and public consultation

Two public Scoping Meetings were held to identify relevant issues to be addressed in the EIA. As a result, it was decided to move the bridge alignment from the centre to the tip of Ada Ciganlija Island. The second Scoping Meeting was held in June 2005 and was attended by over 100 representatives, including NGOs. The results of both Scoping Meetings confirmed strong support for the Project, but some localised concerns that are being addressed. All of the issues raised at the meetings will be taken into account in the preparation of the Final Detailed Design. A further Public Meeting will take place in November 2005 in accordance with Serbian legal requirements.

The Sponsor will organise on-going disclosure of information on the progress of the project and its environmental impacts throughout the project implementation on its website, in annual environmental reports and through periodic press releases.

Supervision and reporting

The Sponsor will report to EBRD annually on the measured environmental impacts and on the implementation of the EMP. The Bank will evaluate the project's compliance with the applicable environmental and social requirements during the lifetime of the project by reviewing these reports. EBRD environmental specialist may conduct monitoring visits to the site when and if deemed appropriate. In addition, independent environmental monitoring audits may be carried out.

There is an Environmental Impact Assesment available for this project.

Technical
cooperation:

  • Private Sector Participation & Financing (EUR 161,000); non-reimbursable. The objective is to appoint advisers to identify and scope possible private sector involvement in local transport, including parking.

  • Lender’s Technical Monitor (EUR 438,574; Canadian Trust Fund); non-reimbursable; consultant appointed.

  • The European Agency for Reconstruction (EAR) is providing EUR 3.0 million for international advisers to support the establishment and operation of the PMU, and provide extensive related training.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

EBRD contact:

Arthur Schankler, Operation Leader: schankla@ebrd.com

Procurement or tendering
opportunities:

Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com


Project Summary Documents are created before consideration by the EBRD Board of Directors. Details of a project may change following disclosure of a Project Summary Document. Project Summary Documents cannot be considered to represent official EBRD policy.
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