According to the disclosure, the funding is intended to cover the purchase of 30 new buses, comprising 24 Euro VI buses and 6 battery electric buses and related charging infrastructure, which will be added to the existing bus fleet of Trafiku Urban (the "Client" or the "Company"), to expand its operations (the "Project"). The Project will enable the Company to increase the frequency of bus services and to add new routes across the Municipality of Pristina (the "City"). The 6 electric buses will be deployed on a pilot route with the aim to introduce electric bus technology for the first time in the country.

PROJECT OBJECTIVES

The Project's objective is to increase services and improve the reliability, sustainability, safety and efficiency of Pristina's public transport. The Project is expected to bring the following benefits:

Extend and improve public transport services in the city of Pristina;Support a continued shift from private cars to public transport;Facilitate easy access for passengers, particularly those with limited movement, including the elderly and the disabled;Improve the reliability, safety and efficiency of public transport;Reduce air pollution emissions from public transport, improving local air quality; andReduce GHG through the launch of a pilot electric bus route.

Extend and improve public transport services in the city of Pristina;

Support a continued shift from private cars to public transport;

TRANSITION IMPACT

ETI score: 70

The Green Cities Framework II ("GrCF2") represents a strategic and multi-project approach seeking to help identify and address environmental challenges in selected large cities in our countries of operation. The primary goal is to achieve significant environmental improvements and to promote theGreentransition quality within the relevant cities. In addition to the environmental objective, the GrCF2 also promotes sustainable cities through inclusive, resilient, well-governed and smart urban development. Depending on which area can generate the strongest and most relevant transition impact, either Well-governed, Inclusive, Resilient or Competitive will be pursued and presented as the secondary transition quality for each sub-Project under the framework. These transition objectives are supported by the development and implementation of a city-specific Green City Action Plan ("GCAP") aiming to identify environmental challenges, facilitate better coordination and buy-in among stakeholders and help to prioritise and develop the best ways to address the environmental challenges through targeted investments, services and policy instruments. The GCAP takes a comprehensive approach, including the consideration of gender equality in the City.

Green

The Project builds on the achievements of the Bank's first project with the Company which introduced a Public Service Contract ("PSC") for the first time in Kosovo.

CLIENT INFORMATION

TRAFIKU URBAN PUBLIC TRANSPORT COMPANY

The client is Trafiku Urban, a public urban bus transport company 100% owned by the Municipality of Pristina.

ADDITIONALITY

The Project is a repeat transaction with the Company however the project structure differs from the previous transaction by introducing a non-sovereign structure with a PSC and a direct engagement with the City to further city-level public transport sector reform efforts.

The Bank's Additionality sources are:

Financing Structure:EBRD offers a tenor, which is above the market average and is necessary to structure the project.

Financing Structure:

ENVIRONMENTAL AND SOCIAL SUMMARY

Categorised B (2019 Environmental and Social Policy ("ESP")). The Environmental and Social Due Diligence ("ESDD") was carried out by an independent consultant and included a site visit and the review of the Environmental and Social Action Plan ("ESAP") implementation status related to the first bus project with the Company. The environmental and social ("E&S") risks and impacts associated with the purchase of 30 additional buses (24 Euro VI buses and 6 electric buses) and related charging infrastructure were identified and will be managed by the implementation of a revised ESAP. E&S monitoring on the first transaction show overall a good progress on implementation of the initial ESAP. The initial ESAP has been revised to reflect ESDD findings and has been agreed with the Company.

The Company has some measures of environmental and social management in place and is committed to complying with national requirements. Refurbishment works on the bus depot (financed by the initial transaction) were completed in 2019, including installation of a bus washing facility. The water supplying this facility comes from two water wells for which the Company has obtained a Water Permit from Ministry of Environment. Two water meters were installed as per recommendations of the Water Permit, in order to control and report for the water quantity that is used. Wastewater effluents are discharged to a sewer via oil and grease separators. The site has a history of contamination, associated with the storage of fuel, heavy fuel oil (for heating) and waste oils. The ESAP requires the Company to develop a Monitoring and Reporting Plan (including effluent quality monitoring).

Within the compound of the Company, a new parking area will be designated to serve as a charging facility for new electric buses. The Company has finalised an Emergency Preparedness and Response Plan. The newly refurbished offices are equipped with smoke detectors, and fire extinguishers are placed in the facilities.

Human Resource Policies and Labour Conditions of the Company are compliant with national legislation and EBRD Performance Requirement 2 ("PR2"). Several improvements were observed since the last E&S site visit, including development of a formal workers Grievance Mechanism and a Health Safety and Social Policy. Due to the sector of activity, the ESAP requires the Company to conduct a driver training programme with specific provisions on Gender Based Violence and Harassment. Should the Company need to implement a collective dismissal (due to the proposed move to a ticketless operation in the longer term), they would have to prepare a redeployment plan, including appropriate training for current ticket collectors, as confirmed in the ESAP.

Arta Domi, CEO
info@trafikurban-pr.com
+383 45 10 11 22
https://trafikurban-pr.com/
Tahir Zajmi n. 43, 10000 Pristina, Kosovo

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html