BUCHAREST METRO LINE 5 SECTION II

The Promoter, Metrorex S.A., a public company fully owned by the Romanian Ministry of Transport, is responsible for the implementation and operation of the metro network. The construction of Metro Line 5 is part of a public transport development plan for Bucharest approved in 2003. Metro Line 5 section I between Drumul Taberei and Universitate, currently under construction, is being financed by the Bank under operation “Bucharest Metro Line 5”. The current project will complete Line 5 with the construction of section II between Universitate and Pantelimon.

Metro Line 5 Section II between Universitate and Pantelimon, consists of 7.5 km of underground line and 12 stations. The project also includes the acquisition of 15 new trains to be operated along Line 5.

The construction of Bucharest Metro Line 5 section II falls under Annex II of the EU EIA Directive, according to which the need for a full EIA is decided on a case-by-case analysis by the Competent Authority. The screening decision has not taken place yet, but the Promoter has already prepared a draft Environmental Impact Study as it is expected that the project will be screened in. Manufacture of the new train sets will take place in the manufacturer’s plant and does not fall within the scope of Directive 85/337/EEC (as amended); the same applies to the implementation, therefore no EIA is required for this component. According to the draft Environmental Impact Study, the project will have no effect on areas within the Natura 2000 network. Details on the EIA process, including land acquisition, protection of cultural heritage, public consultation procedures, grievance mechanism and mitigation measures, will be further analysed during appraisal. The question whether the investment is included in a plan or programme subject to an SEA will also be studied during appraisal. The project is expected to have positive impacts on the environment thanks to the increase in public transport service offer and level of service, and the modal shift from private vehicle use to public transport use.

Metrorex S.A. is a public entity subject to and which follows public procurement rules according to EU regulations, in particular EU procurement Directives (2004/18/EC and 2004/17/EC). Tenders shall be organised in compliance with EU requirements, with publication of tender notices in the EU Official Journal for schemes above thresholds. Application of EU procedures by the Promoter for the tender of services, supplies and civil works will be reviewed by the Bank’s services during appraisal. Under these conditions, the procurement procedures followed by the Promoter are both suitable for the project and satisfactory to the Bank.