BELGRADE PUBLIC TRANSPORT AND TRAFFIC INFRASTRUCTURE

Project Description

In November 2011, the EBRD approved loan of up to EUR 57 million to the City of Belgrade (“original loan”) to finance key investments needed to complete the City’s transport and traffic management strategy. The loan proceeds will be used to finance:

- construction of the tram track over the new Sava bridge and the new traffic management system;
- major renovation of the tram tracks in central Belgrade to allow for the new trams to operate on the tram lines; and
- the City’s main roads renewal and extension to secure a better and safer traffic flow in the City of Belgrade.

In addition, the EBRD is considering a loan increase of up to EUR 31.4 million (“loan extension”) in total: (i) EUR 30 million (to cover an additional investment component for new trams and (ii) EUR 1.4 million to cover the modernisation of the lighting systems at public transport shelters in the city centre.  

 
Transition Impact

The project forms part of the Bank’s Integrated Approach, which includes advanced traffic management and improved urban rail services. Transition impact of this specific project will be delivered through:

1) Performance-based contracting

The asset management approach will centre on the development and delivery of an integrated permitting scheme, to improve the performance of the streets.  The new Permit Unit (accountable for the delivery of a coordinated system) which will administer a fee-based permit system with both public and private utilities and contractors, will deliver enhanced efficiencies by driving down the amount of time in the aggregate that Belgrade’s roads are out of service to users due to utility and street repairs. Integrated Permitting Scheme will be linked to the City’s Geographic Information System (GIS) mapping which will allow for better coordination of road activities. This approach is a significant first step towards implementing a higher quality of service to users by treating streets as assets with measurable economic value.

2) Demonstration effect

This will be the first example of asset management applied to urban roads the Bank has supported in the region. Given the widespread and nearly universal difficulty larger cities have with coordinating street works amongst various bodies, the Belgrade example, once implemented, could serve as an example for other cities in the region.

Also, Belgrade Public Transport Company will implement a strategic turn-around plan focusing on tram operations and demonstrate the effects that successful restructuring have in terms of reduction in operational cost. In addition, the investment in LED+solar lighting systems at public transport stops will demonstrate how significant energy savings can be achieved in the public lighting area.

The Client

City of Belgrade

EBRD Finance

Loan extension in an amount of up to EUR 31.4 million directly to the City of Belgrade.

Project Cost

Total project costs are estimated at EUR 223 million.


Closing date: 10 April 2013


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