Project Description
Provision of a sovereign loan of up to €50 million to the Republic of Serbia (“RoS”), represented by the Ministry of Finance (“MoF”) for the benefit of Serbian Railways Infrastructure (“SRI” or the “Company”), the fully state-owned national railway infrastructure asset management company.
The loan will finance the procurement of goods for the urgent rehabilitation of rail tracks across the network on pre-defined sections (the “Project”). The Project will be implemented by SRI with the support of the Ministry of Construction, Transport and Infrastructure (“MoCTI”).
Project Objectives
Enhancement of the quality of rail infrastructure on the Serbian rail network with a particular emphasis on improving the operational speed and the prevention of derailments, resulting in enhanced reliability and safety of passenger and freight rail services, ultimately leading to higher attractiveness of the railway sector and promotion of modal shift.
Transition Impact
ETI score: 62
The Transition Impact of the Project will be derived from the following transition qualities:
Green: The Project will improve the reliability, safety and overall effectiveness of the railway sector, ultimately supporting modal shift towards rail transportation.
Inclusive: The Project will build upon the ambitious Inclusive transition quality implemented under the previous project with SRI (High Speed Rail Belgrade to Nis – OpID 53136) by increasing the share of women within the Company while implementing community outreach activities focused on young women to attract them to the railway sector or to prompt them to enrol in railway sector higher education.
Client Information
INFRASTRUCTURE OF SERBIAN RAILWAYS JSC
The Borrower is the RoS, represented by the MoF while the client and beneficiary is SRI, the railway infrastructure asset management company of Serbia, fully-owned by the RoS.
EBRD Finance Summary
EUR 50,000,000.00
A sovereign loan of up to EUR 50 million to the RoS, for the benefit of SRI.
Total Project Cost
EUR 50,000,000.00
Total estimated project cost is EUR 50 million.
Additionality
The Bank’s additionality is derived from (i) providing financing with a long tenor, not available in the market from commercial sources on reasonable terms and conditions, and from closing the funding gap; (ii) helping the Company to mitigate climate risk and (iii) the Company to achieve higher gender standards and/or equal opportunities measures.
Environmental and Social Summary
Categorised B (Environmental and Social Policy (“ESP”) 2019). Environmental and social (“E&S”) due diligence (“ESDD”) is currently being undertaken by an independent consultant and includes an audit of the client’s capacity to manage environmental, social and health and safety risks and assessment of the E&S project risks and impacts in line with EBRD’s ESP and Performance Requirements (“PRs”).
The key E&S issues and risks associated with the construction and operation phase of the Project may include generation of large quantities of (re)construction waste including hazardous waste, noise emissions, dust, vibration, worker and community health and safety, accessibility issues, sensitivity of human and ecological receptors, potential disturbance of utility services, contractor management, stakeholder engagement and grievance management. The ESDD will also assess the permitting requirements in line with national legislation.
An Environmental and Social Action Plan will be prepared to ensure full compliance with EBRD’s ESP PRs, which will be discussed and agreed with the client prior to project approval by the Bank.
The Bank will monitor the implementation of the Project through review of annual monitoring reports and visits as required.
The PSD will be updated following the completion of the ESDD and the agreement of the ESAP.
Technical Cooperation and Grant Financing
It is envisaged that TC support for this operation will be provided pre-signing to assist the Company with the: (i) technical and economic due diligence and (ii) environmental and social due diligence. Post-signing safety-related technical assistance is also envisaged to support SRI in monitoring and managing its own safety through the operationalisation improving the effectiveness of the Safety Management System within the Company.
Company Contact Information
Ivan Aksentijevic
ivan.aksentijevic@srbrail.rs
+38169 827 31 00
https://infrazs.rs/
Nemanjina 6, 11000 Belgrade
PSD last updated
19 Jun 2024
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
Business opportunities
For business opportunities or procurement, contact the client company.
For business opportunities with EBRD (not related to procurement) contact:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
Specific enquiries can be made using the EBRD Enquiries form.
Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD’s Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank’s countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.