Project description
and objectives:
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The EBRD is considering making a loan of approximately EUR 9 million to Zagreb Holding, a communal services company owned by the City of Zagreb, acting through its urban transport division ZET. The project is intended to:
- Finance the purchase of up to 40 new buses to serve a bus service to Velika Gorica, a fast growing satellite town close to Zagreb.
- Introduce a best practice, incentive based Public Service Contract (the “PSC”) between Velika Gorica and ZET.
- Assist the City of Velika Gorica to set up a new Transport Department, responsible for planning, ordering and controlling public transport services by developing and implementing an Urban Transport Management Strategy for the City.
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Transition
impact:
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The proposed project is expected to provide transition impact through the following:
- Commercialisation of the relationship between Veilka Gorica and ZET through the introduction of a fully EU-compliant Public Service Contract (PSC) providing for a transparent, multi-year, performance-related service payment and making the Company responsible for investment planning and financing;
- Development of the framework for markets thanks to the signing of the first PSC between a metropolitan transport operator and a satellite city, which should serve as an excellent example of establishing an efficient and commercialized relationship with ZET and providing the basis for future outsourcing to private operators.
- Delivery of regulatory and planning improvement by creating a functioning transport unit within the City of Velika Gorica to establish a clear and rational service requirement for public transport.
- Establishment of corporate governance standards through the implementation of the Bank’s Procurement Policies and Rules.
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The client:
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• Zagreb Holding acting through its division GKG-Zagrebacki Elektricni Tramvaji (“ZET” of the “Company”).
• The City of Velika Gorica.
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EBRD
finance:
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Senior loan of approximately EUR 9 million to the Company.
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Total project cost:
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The proposed project is expected to cost approximately EUR 9.5 million.
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Environmental impact:
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The project has been screened B/1.
This project presents significant environmental opportunities to reduce pollution and improve standards in public transportation. The environmental due diligence showed that the Project will improve health and safety standards where the fuel consumption will be reduced and air emissions standards will be implemented. Existing buses will be replaced with EURO IV standard buses would result in significant environmental benefits.
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Technical
cooperation:
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The consultants funded under the Framework for Technical Assistance to Croatian Municipalities (funded by the Government of Netherlands) will assist in project preparation and implementation, as follows:
- Pre-signing phase - Project preparation, including assistance with procurement of new buses, Environmental Audit and preparation of a Public Service Contract. Identification of options and planning for tendering of provision of bus services. Funded under the Framework for Technical Assistance to Croatian Municipalities (Funded by the Government of the Netherlands).
- Post-signing phase - Urban Transport Regulatory Strengthening and Management Strategy for the City to examine options and produce recommendations related to: (i) design of a new Transport Department in the City of Velika Gorica and assistance with monitoring of quality of the ZET services provided under PSC; (ii) institutional strengthening of the new Transport Department in the City and (iii) route planning assistance.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Davor Indic, Operation Leader: indicd@ebrd.com
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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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