Original disclosure @ EBRD website
Updated in EWS Jan 14, 2023
Disclosed by Bank Jan 13, 2023
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The project includes the provision of a secured loan of up to EUR 38.23 million to Vilniaus Viesasis Transportas ("VVT"), the municipally-owned transport company of the City of Vilnius. The proceeds of the loan will be used to finance the purchase of battery / electricity powered trolleybuses to renew part of VVT's ageing fleet of 159 trolleybuses. With the Project serving as the City's "trigger" investment to become a Green City as part of the Green Cities Framework 2 - Extension 2, EBRD will support the City to develop a Green City Action Plan ("GCAP"), through which the City will identify and prioritise its most pressing environmental challenges, and develop targeted investment and policy actions to address them.
By improving the quality and reliability of trolleybuses, the Project is expected to improve the attractiveness and increase the ridership of Vilnius' public transport, and therefore to encourage a modal shift towards low-emission, electric transport modes. The Project is expected to result in reduced emissions and enhanced energy efficiency.
The Project is part of a broader City programme to achieve sustainable mobility in Vilnius, which aims to make public transport the backbone of transport in Vilnius by ensuring quick and safe transport within the city and by increasing connectivity between the city and peripheral areas through public transport service.
ETI score: 70
The Project is in line with the Green Cities Framework 2 ("GrCF2" or "Framework"), a strategic and multi-project approach framework targeting environmental issues in selected large cities in the Bank's countries of operation. The Transition Impact of the Project will therefore be derived from:
1) Green quality
The Project will enable VVT to purchase new battery / electricity-powered trolleybuses (with zero tailpipe emissions), replacing its ageing fleet. Modernization of VVT's fleet will improve the attractiveness of public transport, and promote a modal shift towards cleaner transportation and away from personal vehicles. The Project will also entail the development of a GCAP for the City of Vilnius, which will identify and address priority environmental challenges for the City.
VILNIAUS VIESASIS TRANSPORTAS JSC
Vilniaus Viesasis Transportas ("VVT") is the public transport operator of the City of Vilnius, 100% owned by the City.
EBRD FINANCE SUMMARY
A secured senior loan of up to EUR 38.23 million lent to VVT. EBRD will seek to mobilise a concessional loan from Taiwan ICDF to finance up to 20% of the loan amount.
TOTAL PROJECT COST
Total project cost is EUR 90 million. On top of EBRD financing, VVT will benefit from a EUR 10 million national grant.
Financing structure: EBRD offers longer term financing that is not available in the market from commercial sources on reasonable terms and conditions while also funding the gap (without crowding out other sources or by complementing them).
ENVIRONMENTAL AND SOCIAL SUMMARY
Categorised B (2019 ESP) and Low-Medium risk. The Borrower is a new Client of the Bank. The Project aims to achieve sustainable mobility in Vilnius and the E&S impacts, which will be associated with the purchase of battery / electricity-powered trolleybuses to renew the Borrower's ageing fleet of 159 trolleybuses are expected to be limited and mainly positive. Key E&S impacts/risks to consider include electric and traffic safety; labour and GBVH; fleet management; management of COVID-19 related risks for staff and passengers. Environmental and social due diligence ("ESDD") will be undertaken by ESD initially and depending on the findings an independent consultant may be required. ESDD will focus on the key E&S impacts/risks and the Company's capacity to implement the project in line with the EBRD's Performance Requirements (PRs), with specific attention to labour practices, road safety and driver training.
Opportunities to enhance gender and inclusion, safety of vulnerable groups and also prevention of GBVH concerns, along with stakeholder engagement and current grievance mechanisms will be investigated. ESDD will also assess the Company's capacity to manage supply chain risks associated with the use of nickel /cobalt-based technologies in battery / electricity powered trolleybuses and charging stations. Post-signing Technical Cooperation (TC) support may be necessary for the Environmental and Social Action Plan (ESAP) implementation and capacity support.
TECHNICAL COOPERATION AND GRANT FINANCING
Green City Action Plan: support to the City for the development of a GCAP to prioritise the City's most pressing environmental challenges and to define the investments and policy actions to address them.
COMPANY CONTACT INFORMATION
Rymvydas Totoraitisrimvydas.email@example.com+370 (85) 2394 783www.vilniausviesasistransportas.ltUAB "Vilniaus viesasis transportas"
Zolyno g. 15, 10209 Vilnius
+370 (85) 2394 783
UAB "Vilniaus viesasis transportas" Zolyno g. 15, 10209 Vilnius
ACCESS TO INFORMATION
You can request information by emailing: firstname.lastname@example.org 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: email@example.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