Release date: 22 March 2021
Promoter – Financial Intermediary
SOFIA MUNICIPALITYLocation
Description
The project consists of transport infrastructure and tram rolling stock investments to improve the public transport system in Sofia, Bulgaria.
Additionality and Impact
The project supports investment in the public transport system in Sofia, Bulgaria through the rehabilitation of tramway infrastructure, purchase of new tram rolling stock and intelligent transport management systems. This is fully in line with EU and EIB objectives on sustainable cities and regions, climate action, environmental sustainability, and economic and social cohesion. The protect has received an EU grant, which the Bank financing will complement.
The project components are expected to provide very good socio-economic benefits by helping to improve the attractiveness of public transport, decreasing daily car-trips and alleviating congestion and other associated externalities in the transport system in Sofia.
EIB's advice and financial contribution has a positive impact on the technical quality and implementation of the project. The promoter has benefited from JASPERS involvement during project preparation. The EIB's involvement in the financing of the project will play a key role in facilitating the absorption of EU structural funds and lead to the improvement of the promoter's financial profile by diversifying its funding base, increasing its debt maturity structure and lowering its average cost of funding.
Objectives
The project is designed to address congestion and other associated externalities in the transport system in Sofia. This is through supporting the shift of traffic to more sustainable transport modes from road transport, improving the management and efficiency of the public transport system, and information supplied to transport users.
Sector(s)
- Transport - Transportation and storage
Proposed EIB finance (Approximate amount)
EUR 8 million
Total cost (Approximate amount)
EUR 51 million
Environmental aspects
The project comprises of investments including transport infrastructure rehabilitation, tram rolling stock and intelligent transport management systems. Some of the schemes may fall under the EIA Directive (2014/52/EU amending the EIA Directive 2011/92/EU). Compliance with the EIA Directive in addition to the SEA Directive (2001/42/EC), Habitats and Birds Directives (92/43/EEC and 2009/147/EC respectively) and Water Framework Directive (2000/60/EC) is to be assessed during appraisal. For rolling stock, the EIB shall assess arrangements for the scrapping/recycling of dismissed assets.
Procurement
The Bank will require the Promoter to ensure that contracts for implementation of the project will be tendered in accordance with the applicable EU procurement legislation: Directive 2014/24/EU as well as Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with publication of tender notices in the Official Journal of the EU, as and where required.
Status
Approved - 25/06/2021
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).