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, 3: Environmental Impact Assessment, 3: Disclosure of environmental aspects, 3: Emissions, 5: Capacity and institutional building, 5: Gender, 5: Occupational health and safety, 5: Social inclusiveness, 5: Disability, 5: Low-income groups, 5: Children, 5: Elderly, 6: Procurement transparency
Overview
Two sovereign loans of up to EUR 107 million to Georgia (EUR 27 million and EUR 80 million respectively) and a capital grant of EUR 7 million from the Eastern Europe Energy Efficiency and Environment Partnership (“E5P”) were provided to support the City of Tbilisi and its municipal bus company Tbilisi Transport Company LLC to improve and modernise the bus operations. Both projects (together the “Project”) financed the acquisition of a new bus fleet of up to 370 modern 12-metre low-floor compressed natural gas (“CNG”) buses and the rehabilitation of bus depots. The Project is under the EBRD Green City Framework.
Timeline
Tbilisi Bus project was signed in May 2016 and Tbilisi Bus Extension was signed in November 2019.
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. It has positive impact on accessibility and overall mobility in the City, as well as safety and efficiency of urban transportation.
Benefits
The Project, which promotes sustainable transport in Tbilisi, is part of a broader programme aiming to assist the City in reforming its management of public transport by financing the renewal of the bus and metro systems and network restructuring. Tbilisi is committed to a paradigm shift in the public transport and has a strong reform agenda.
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 Project will have a positive impact on the local air quality and result in environmental and public health benefits (reduction in premature human mortality and disability due to respiratory, coronary and cancerous diseases).
The Project promoted equal opportunities, improved the Company’s environmental and social performance through the introduction of gender considerations, and raised occupational health and safety management standards at the Company.
Moreover, this Project showcased the introduction of low floor buses resulting in significant social benefits as they 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, such as visibility, impact on mobility, modal shift from car to bus, reduced operating costs, etc.
The Project also delivered capacity building to the Company through the Corporate Development and Stakeholder Participation Programme.
As part of Tbilisi Bus project, the City joined the EBRD Green Cities Programme. Tbilisi was one of the first three cities to pioneer a Green City Action Plan (“GCAP”) development, and approved it in September 2017. The GCAP enabled the City to measure, identify, benchmark and prioritise environmental issues and identify appropriate mitigation actions and investments. Such a plan sets a vision and benchmarks for the sustainable development of the City. Since its approval, the City is actively working on its implementation.
Metrics
The Project will be monitored according to the EBRD standard procedures.
Name of Institution
European Bank for Reconstruction and Development
Website URL