COUNTRY | Georgia
REGION | Europe
SECTOR | transport
QII Principles | Principle 1 Sustainable Growth & Development, Principle 2 Economic Efficiency, Principle 3 Environmental Considerations, Principle 5 Social Considerations, Principle 6 Infrastructure Governance
QII Sub-Principles | 1: SDGs, 1: Paris Agreement, 1: Wider economic benefits, 2: Life-cycle costing, 2: Technological innovation, 3: Environmental Impact Assessment, 3: Emissions, 5: Capacity and institutional building, 5: Occupational health and safety, 5: Social inclusiveness, 5: Disability, 5: Low-income groups, 5: Children, 5: Elderly, 6: Procurement transparency,
Overview
A sovereign loan of EUR 5.5 million to Georgia and a capital grant of EUR 1.5 million from the Eastern Europe Energy Efficiency and Environment Partnership (“E5P”) is supporting the City of Batumi and its municipal bus company Batumi Autotransport LLC to improve and modernise bus operations, through the purchase of a new bus fleet of 8 electric and 40 diesel buses with Euro V engines, to ensure improved environmental and operational performance. The Project is under the EBRD Green City Framework.
Timeline
Legal agreements signed in July 2017. Diesel buses delivered in August 2018. Electric buses are expected to be delivered till end of 2020.
Relevance to QII
The Project is complemented by a reform agenda to encourage the financial sustainability of bus operations, supports capacity building at the bus company, and has positive impact on the overall mobility in the City.
Benefits
The new bus fleet with latest technology will reduce harmful, local air pollution emissions, especially particulate matter (“PM”), including black carbon, and nitrous oxides (“NOx”). The buses will benefit from Georgia’s sustainable electricity mix, which benefits from a high proportion of hydro-electric production. The Project will have a positive impact on the local air quality, which will result in environmental and public health benefits (reduction in premature human mortality and disability resulting from respiratory, coronary and cancerous diseases).
Moreover, this Project showcases the introduction of low floor buses resulting in significant social benefits as they will facilitate easier access for passengers with prams and shopping bags, especially women, and those with limited mobility, including elderly and disabled travellers.
The Project also has a number of significant socio-economic benefits that should not be overlooked, such as visibility, impact on mobility, modal shift from car to bus, reduced operating costs, etc.
Electric buses offer significant reductions in operating costs, compared to alternative fuel-based technologies, due to lower energy and bus maintenance costs, which help offset the higher initial investment. As electric technology develops, it is expected that bus and battery replacement costs will decrease and it will provide whole-life savings for operators and city authorities. The Project will encourage the uptake of such technology by allowing the building of locally-based skills and experience in electric bus operations.
The Project also delivered capacity building to the Company through E-bus training and market workshop during Due Diligence and a Corporate Development and Stakeholder Participation Programme.
In addition to the Project specific benefits, the City has also joined the EBRD Green Cities Programme, with a commitment to develop a Green City Action Plan (“GCAP”). The GCAP will enable Batumi to measure, identify, benchmark and prioritise environmental issues and identify appropriate mitigation actions and investments. Such a plan will set a vision and benchmarks for the sustainable development of the City. The GCAP for Batumi has been prepared and is expected to be approved by the City Council until end of 2020.
Metrics
The project will be monitored according to the EBRD standard procedures.
Name of Institution
European Bank for Reconstruction and Development
Website URL