Blog entry

Romania’s big bet on fossil gas proves a reckless gamble

The country’s newly published energy strategy argues for increased gas consumption based on plans for new power plants and distribution systems. According to both the national energy strategy and the national energy and climate plan, due to be released this month, Romania will add 2 gigawatts to its gas-fired power production capacity by 2030. However, the number of projects in the works is actually much higher.

Romania is currently actively building and planning a number of gas-fired power plants with a combined capacity of over 3 gigawatts. New projects slated for Turceni, Isalnita and Mintia are being pursued to replace the country’s ageing coal infrastructure and ‘secure’ the national energy system.

But while most EU countries are trying to reduce their reliance on gas after Russia’s full-scale invasion of Ukraine, the Romanian government seems oblivious, pressing ahead with plans to open the Neptun Deep gas field in the Black Sea.

Starting in 2027, OMV-Petrom expects to extract around 100 billion cubic metres of fossil gas over a period of at least 20 years, well beyond the time Europe’s energy system aims to be free of fossil fuels. According to the country’s energy strategy, this would position Romania as a major regional fossil gas exporter starting in 2027.

But Romania needs energy now. Soaring temperatures this summer have led to a surge in the use of cooling devices, with the national power system unable to meet increased demand, resulting in record-high imports. The government has even warned of possible local power outages.

The planned gas power plants will take at least three more years to become operational and have already encountered considerable delays. The 850-megawatt Isalnita power plant is still in the permitting stage, while the Turceni plant (475 megawatts) is only now undergoing tender preparations. Though the initial plan was to start operations in 2026, officials have now suggested the end of 2027 as a more realistic target.

Meanwhile, the Mintia mega power plant, with a capacity of 1700 megawatts, appears to be on track. The project has obtained an environmental permit, secured a construction contract, and already received the delivery of its first turbine. The power plant is expected to be completed by mid-2026. However, its sources of financing remain a mystery.

In theory, renewable energy projects should be faster to build, as the permitting process is typically shorter than that for a huge concrete carbon emitter. Solar farms, for example, generally take 8 to 18 months to complete1 from planning to implementation, compared to a minimum of 24 months only for constructing a gas plant. In Romania, solar farms with a total capacity of 2000 megawatts are expected to come online in 2024 and 2025. If these deadlines are met, solar energy, coupled with energy storage solutions, could meet Romania’s energy demand as early as next summer.

The hydrogen mirage

The companies behind these new gas projects claim their power plants are ‘hydrogen-ready’, touting their capacity to burn a blend of fossil gas and hydrogen, usually at around 20 per cent. While they claim to eventually transition to 100 per cent renewable hydrogen, the economic realities point to a far less appealing future.

Recent reports indicate that the price of renewable hydrogen in Europe will not drop below EUR 5 per kilogramme by 2030 and EUR 3 per kilogramme by 2050. In contrast, the equivalent energy content of gas (3 cubic metres) currently costs around 1 EUR in the EU. Given that fossil gas is already one of the most expensive fuels for electricity production in the EU, rising fuel prices could further jeopardise the economic viability of these power plants. As a result, there’s a strong likelihood that these plants will continue to primarily run on fossil gas, derailing Romania’s trajectory towards an economy free of fossil fuels.

The documentation for these projects also suggests that hydrogen may just be a fig leaf for continued fossil fuel dependence. The technical details for Isalnita and Turceni make zero mention of ‘hydrogen-ready’ components. Only the Mintia project refers to hydrogen generators and storage capacity. In any case, these projects will need additional investments to increase hydrogen usage.

The truth is, the Romanian government’s megalomaniacal pursuit of gas needs a reality check. It must increase its support for electrification by investing in networks and energy storage, while simplifying bureaucratic procedures for renewable energy projects, such as land acquisition. The country already has an installed gas capacity of around 3 gigawatts, with plans to increase this to 5.3 gigawatts by 2030 according to the national energy and climate plan. However, the actual projects in development indicate a significantly higher capacity.

New modelling published by the Regional Centre for Energy Policy Research (REKK), a Budapest-based think tank, shows that new gas capacity in Romania could be reduced to as little as 600 megawatts in total. On the other hand, a shift to hydrogen could risk turning these planned power plants into stranded assets. Even 600 megawatts is excessive given the present climate chaos, highlighting the urgent need for Romania to find viable alternatives, including demand response strategies.

Communities focus on sustainability

Though Romania’s government and utility companies continue to heavily promote gas as a solution for regions in transition, local communities are increasingly looking towards sustainable alternatives. While they accept gas as a short-term measure, they don’t see it as a viable long-term fuel. Instead, some communities have chosen to focus on energy efficiency and sustainable energy to support local residents.

For example, the small town of Turceni in the Gorj coal region is implementing multiple EU-funded green projects, while other towns are taking the opportunity to install municipal solar farms and support prosumers. RenewAcad, the largest network of renewable energy training centres in southeastern Europe, is helping to skill local residents to operate solar and wind farms and manage power systems. This proves that where there’s a willing market, there’s a way.

Accelerating the development of both distributed and large-scale solar production capacities is key to enhancing energy security and ensuring a sustainable transition. Alongside other regeneration initiatives, this approach can help productively utilise brownfield sites and boost electricity generation capacity at the quickest rate. For instance, there’s huge potential to harness the abundant sunshine on offer in the southwestern coal region of Gorj as a way of attracting new business, reducing pollution and engaging communities. By embracing renewable sources of energy in this way, Romania can secure a cleaner, more sustainable future for its citizens.

Western Balkans: Chaotic, opaque selection process for EU infrastructure funding needs major improvements

The WBIF was set up by the European Union, international financial institutions (IFIs), bilateral donors and the governments of the Western Balkans in 2009 and provides finance and technical assistance for investments, mostly in infrastructure, but also energy efficiency and private sector development. It’s a key vehicle for delivering EU funding under initiatives like the Economic and Investment Plan, and at least 50 per cent, or EUR 3 billion, of the EU’s new Reform and Growth Facility is also to be disbursed through the WBIF.

To enable countries to propose projects for funding, the WBIF has created a project selection process that involves each country creating lists of priority projects called Single Sector Project Pipelines which are then combined into a unified list called a Single Project Pipeline. Projects from the list that attract ‘sponsorship’ from one of the international financial institutions can then be put forward for WBIF financing, subject to further screening and selection.

Unlikely that the best projects are being put forward

In our new briefing, From quantity to quality: How to improve the infrastructure project selection process under the Western Balkans Investment Framework? we’ve taken a look at how the project pipeline lists are created, with a deeper look at North Macedonia. We’ve found a surprisingly chaotic situation which casts serious doubt on whether the best projects are being put forward for financing.

Obviously the WBIF’s selection process does not solely rely on the countries’ prioritisation, but the problem is that neither the national-level project selection process nor the WBIF assessment are transparent or based on clear criteria.

The national processes result in ridiculously long lists of projects which cannot possibly all be implemented. For example, North Macedonia’s latest list has 181 projects while Montenegro’s has 154 and Bosnia and Herzegovina’s has 143. It is impossible for the public to understand how they were chosen and which ones are the real priorities.

And the WBIF does not publish any information about projects before it approves them for funding, nor is it clear what criteria are used to assess them. In previous meetings with the European Commission, we’ve heard claims that the projects are all well-known because they are selected from existing national strategies. However, deeper examination of the WBIF rules and the lists shows that this is not necessarily the case. And national strategies are frequently outdated or do not contain details about individual projects.

The Commission has also shared that something called the EU Greening Facility helps to assess the projects’ environmental credentials, but we’ve approached them twice by email and so far received no response.

A deep dive on North Macedonia

We took a deeper look at North Macedonia after a December 2022 state auditor’s report heavily criticised the project selection process for the list adopted earlier that year. But what we found also reflects a lack of clarity on the EU level about how the project selection should be done.

Our main finding is that the entire process is plagued by inconsistencies between sectors and ministries, with different selection methodologies for the creation of the Single Sector Project Pipelines for e.g. energy and transport. This makes it impossible to understand how some of the projects were categorised and prioritised.

For most sectors there are sectoral working groups to discuss and prioritise the projects but not all of them are active and most do not include civil society. For the energy sector, no working group exists, so project selection is done entirely behind closed doors by the relevant ministry negotiating with the relevant companies.

As a result of this untransparent process, North Macedonia’s Single Project Pipeline includes some projects that do not really make sense. An illustrative example is the Gas Interconnection Republic of North Macedonia – Republic of Kosovo, which is claimed to have a high maturity level of 4, yet Kosovo’s Energy Strategy does not foresee the project going ahead at all.

How the ranking impacts on projects’ financing prospects is also unclear since, for example, financing has been secured for the ‘mature’ transport project Construction of new motorway section A2 Bukojcani – Kicevo even though it is near the end of the list with a fairly low ‘strategic relevance’ score and a modest maturity level ranking of 2.

In addition, a highly controversial road project was added to the list of mature projects in the most recent list: Construction of state road R1209, Section Tetovo – Border crossing with Kosovo (Prizren). The road is supposed to go through the heart of the Shar Planina National Park and is strongly opposed by the national park authorities. It has the lowest maturity level ranking 1 and had no project documentation prepared at the time of the approval of the list. It also has a very low ‘strategic relevance’ score, yet it is on the list of mature projects, indicating political prioritisation rather than a genuine strategic assessment.

No fewer than 73 of North Macedonia’s 181 ‘priority’ projects are in the transport sector, and these are mostly for roads, showing a massive inter-sectoral imbalance and failure to promote modal shift.

Fossil fuel infrastructure projects costing between EUR 1.4 and 1.8 billion are also on the list, while only EUR 215 million worth of much-needed grid improvements are included, and energy efficiency projects are limited to EUR 50 million.

Worryingly, even more money is now expected to be set aside for fossil fuels than was the case in 2022, when the related projects looked set to cost EUR 1.2 to 1.6 billion.

An obvious imbalance is also visible in the renewable investments: at least EUR 1.3 billion is intended for investments in climate-vulnerable, biodiversity-damaging hydropower, while only EUR 400 million are planned for investments in solar and wind together.

The way forward

In order to overcome these issues, the European Commission needs to update the WBIF methodology for creation of the sectoral and single project pipelines and require the establishment of sectoral working groups and proper regulation of their work. A cap on the number of projects per pipeline would also help to ensure governments truly prioritise.

In addition, the working groups’ activities have to be transparent and participatory, and project selection to include various relevant stakeholders, in order to ensure the selection of projects that are actual strategic priorities. To ensure this, the groups need to include academics and CSOs at the very least, but also the final draft single project pipeline has to go through proper public consultation before it is sent for government adoption.

The existing single project pipelines need to be revised through an updated process before future financing decisions are made through the WBIF. This will probably speed up the implementation of projects and reforms in the recipient countries as efforts will not be spread out over such a large number of projects.

The greening component of WBIF financing also needs to be more transparent, with a clearer emphasis on modal shift in transport and more support for circular economy investments such as waste prevention, re-use, recycling and composting.

Financial support for new fossil fuel installations in the Western Balkans must be discontinued, including a halt to technical assistance or financing for gas projects, or any projects that extend the lifetime of existing fossil fuel infrastructure. Ambitious targets for deep renovation of buildings, prioritising the integration of heat pumps, heat storage systems, and other sustainable renewable energy-based technologies for production and storage of electricity and heating, should be supported to increase the share of sustainable renewables and implement energy savings in different sub sectors.

Only by implementing these measures can we be sure that real priority projects are being put forward by the countries and ensure the most appropriate use of limited EU public funds.

Even with hard work, a just transition needs long-term support

Since the late 1970s, the town of Turceni has been home to a massive lignite-fired power plant. Its seven 330-megawatt (MW) units were completed between 1978 and 1987, making it the largest power station in Romania.

The plant has brought both prosperity and pollution. In December 2013 it also brought tragedy: damage to the ash landfill dam caused a metre-thick layer of ash sludge to flood 15 hectares of agricultural land and 10 households in the nearby Submaidane settlement. To this day wells remain unusable for drinking.

Unit 6 retired in 2006, and the other units have been closing one by one since 2019. Only unit 5 is now operating regularly, and only until 2025, when it will be put into cold reserve.

A 475 MW combined-cycle gas turbine plant is planned to replace the coal plant at Turceni, supposedly by 2026. Scandalously, funding from the EU Modernisation Fund has been approved for the project, despite it locking Romania into increased fossil gas use.

And while it might sound big, a new gas plant will not help to retain many jobs: it will be highly automatized.

More positively, a 112 MW photovoltaic plant is also planned on the ash dump, also to be funded by the Modernisation Fund. This will also bring very limited employment opportunities, but represents an excellent use of otherwise dead space.

A hive of activity

Turceni has no alternative but to pursue new economic directions, and its authorities are fully aware of this. In late July, we visited deputy mayor Lucian Margineanu to hear more about the town’s efforts so far.

Despite Turceni’s small size – it has around 7000 people – the local authorities are making substantial efforts both to attract new businesses to the area and take advantage of existing funding opportunities to advance the local energy transition.

They have held talks with companies recycling photovoltaic panels, manufacturing cold cuts and beverages, but have yet to attract significant new economic activities.

The EU’s Just Transition Fund has not even reached the region yet, as no calls for local authorities have been launched – only one for small and medium enterprises.

Things are moving faster with other EU funds though, usually co-financed by the municipal budget. The local authorities have no fewer than eight EU-funded projects in areas such as energy-efficiency renovations of housing blocks and municipal buildings. The town hall itself was closed when we visited, due to an ongoing renovation. They’ve also applied for Modernisation Fund support to install a 350 kilowatts photovoltaic park near the town’s stadium.[*]

A staff member is also available to help residents access a programme by the national environmental fund to support the installation of solar photovoltaics on rooftops, which is expected to start again shortly after a hiatus, and will include battery storage options. The town also has a waste separation project starting soon with support from the Recovery fund, as well as an urban mobility plan.

The results of this work are already visible: the town is well-maintained and neat. Major gaps exist, but mainly as a result of a lack of financial support programmes by the national government. Energy efficiency renovations are only supported for housing blocks, not individual houses, despite significant needs, and no incentives for heat pumps are available in Romania.

But the town has a new gas distribution system, which will make the transition from fossil fuels even harder. Since 2021, houses can be connected to the gas distribution grid for free – a major step in the wrong direction which will take years to turn around.

Putting more meat on the transition will take time and needs continued EU support

Turceni perfectly illustrates the difficulties faced by local authorities in coal-dependent regions. People are used to massive coal power plants and mines and find it hard to accept that they will not be replaced by equally gargantuan industries.

Smaller and less intrusive developments have lower environmental impacts and may provide safer jobs, but these come incrementally. People are beginning to feel impatient about the area’s redevelopment and some are moving to larger cities.

Turceni shows that EU funds are reaching coal-dependent regions and making a visible impact. But even where the local authorities are proactive, this process takes time and funds supporting energy transition are not enough to ensure wider economic redevelopment.

A just transition needs constant support over decades: as the EU considers its next budget from 2028 to 2034, it needs to ensure continuous dedicated support for such regions through the Just Transition Fund.

[*] In light of new information, we’ve updated the part of the text concerning Turceni’s application for support for a photovoltaics project via the Modernisation Fund (September 3, 2024).

From coal to clean energy: A Romanian initiative for sustainable employment

The focus must be on creating decent, sustainable jobs as the foundation of an economic system that serves both people and the environment.

Challenges of the just transition

It’s projected that the green transition will create approximately 1 million new jobs across the EU by 2030. This transformation will require supporting workers in updating their skills and shifting the focus of the education system towards life-long learning. With the EU committed to decarbonise its economy by 2050, fossil fuel industries will either be phased out or undergo radical technological transformations.

Recognising the vulnerability of mono-industrial regions dependent on polluting industries, such as EU’s coal-mining regions, the Just Transition Fund supports the workforce in transitioning to a low-carbon economy as one of its main objectives. In Romania, which has committed to phasing out coal by 2032, almost EUR 300 million from the Just Transition Fund has been allocated to this end for the country’s six beneficiary counties.

Whether it involves updating existing competencies or learning a completely new set of skills, workers in declining industries must be supported with complex, integrated interventions. These may include financial, logistical, psychological, or family-oriented measures to facilitate the transition between sectors and ensure the sustainability of new occupations.

Reskilling for a green future

An inspiring example of a programme that supports professional retraining in emerging green domains is RenewAcad, a network of counselling and professional training centres for renewable energy in Romania and the largest of its kind in southeastern Europe. These centres are dedicated to individuals in areas dependent on coal-based energy production, but not exclusively.

The academy takes advantage of the easily transferable technical skills of mining sector technicians, providing them with both practical and theoretical knowledge to become technicians and specialists in the solar, wind, or energy distribution renewable sectors. At the end of this programme, participants can access well-paid jobs in the installation, operation, and maintenance of renewable projects and electrical networks through recognised certifications.

Easier and cleaner working conditions and competitive salaries in the fast-growing renewable energy sector can be an additional motivation for the workforce to transition from the mining industry to renewables-focused sectors.

Already present in several cities in Romania, RenewAcad recently launched a new counselling and professional retraining centre in Rovinari, Gorj, implemented with the support of the Equal Opportunities Foundation, the Renewable Energy School of Skills (RESS), and funding from OMV Petrom.

Gorj remains the most affected region undergoing decarbonisation in Romania, with around 8,000 employees of Oltenia Energy Complex (OEC) still active in the coal mining industry. This means there’s an acute need for alternative, decent, and sustainable jobs. Organised in partnership with OEC, the course will initially prepare current OEC employees to take part in the construction of new photovoltaic parks, which are part of OEC’s restructuring plan.

Partnerships for success

Creating the opportunities and infrastructure for reskilling and upskilling requires broad and integrated partnerships between public institutions, the private sector, educational institutions, and civil society, aimed at accompanying workers throughout the process. Grassroots and personalised support measures, although time- and resource-intensive, are the only way to ensure the workforce undergoes a smooth transition.

These initiatives must be complemented by policies and programmes that encourage the development of high value-added, emerging green sectors that reintegrate workers into the labour market. After all, a just green transition can only be achieved if workers are able to recognise and seize the opportunity to secure decent, clean jobs and a better life.

Estonia’s young heroes leading the just transition charge

The assembly has provided 40 young people from Ida-Virumaa with a unique opportunity to influence one of the biggest societal changes in Estonia in recent decades. This has allowed youth representatives to evaluate the region’s Territorial Just Transition Plan and propose changes to ensure youth gets a fair deal.

Out of that assembly emerged PWP Liit , a non-profit youth organisation determined to bridge the development gap between their region and Estonia’s more advanced counties. Thanks to contacts built up through their participation in the assembly, PWP Liit seized a golden opportunity to take action – the EUTeens4Green project, a one-of-a-kind regranting initiative launched by the European Commission aimed at supporting youth-led projects in the regions. Although slightly daunted by the prospect of receiving the seemingly large sum of EUR 10 000 if selected, they took the plunge and decided to apply.

Environmental initiative in action

Even though things were slow to get going as they weren’t exactly sure initially what they wanted to focus on, PWP Liit started brainstorming. After toying with some great ideas, like creating an educational board game and establishing a language cafe with a twist, which would see them sharing knowledge and experiences with a focus on climate, they finally settled on developing an online course to educate their peers and the next generation of students. And so began the ‘Environment Hero Course’.

They set about developing a course curriculum that would blend information about climate change and the green transition to encourage youth engagement in sustainable solutions. To get an idea of what secondary school and university students might expect from the course, they conducted a survey along with an associated campaign. Researchers from the University of Tartu and other local experts not only helped them review the feedback they received, but also to prepare the course for launch on the Moodle learning platform.

With the help of their partners, members of PWP Liit have managed to establish a community, learning how to leverage their individual strengths, leaning into their unique talents, and working as a team – assets that will stand them in good stead on their project journey.

Arguably their biggest challenge has been to set up a curriculum from scratch, a task made all the more arduous given their complete lack of experience in the field. They have to navigate an abundance of information, determine what’s true and false, select the right amount of information to include in the course, and source contacts to help them on their way. Quite a handful for a group of young people trying to juggle school at the same time! They’ve also had the added inconvenience of trying to schedule project coordinator meetings during classes, a reality that’s not often considered when working with students.

Complicating matters further, the group now has to contend with the Estonian government’s new directive requiring all state schools to switch to teaching exclusively in Estonian. This represents a logistical headache for the numerous Russian-speaking schools in the region. In stark contrast with the rest of Estonia, Ida-Virumaa exhibits the lowest concentration of Estonian speakers at just 14.5 per cent. The course was originally intended to be carried out in both languages, but the final version had to be restricted to Estonian.

Today, the EUTeens4Green project has ended and PWP Liit’s course is undergoing beta testing. Looking to the future, the organisation is currently developing a comparable course tailored for older teachers, with the average 65-year-old typically out of touch with advancements in science and the green revolution. After all, how can teachers teach students if they don’t have access to current information? With materials for the teachers’ course more or less ready, their next step is to attract further financial and capacity support.

Support from the Just Transition Fund

Building on the financial support from the European Commission initiative, the Just Transition Fund is also giving young people a chance to participate in the transition process. For instance, one Just Transition Fund measure in particular is being implemented to support local communities through citizens’ initiatives. Activities are aimed at promoting environmental awareness and supporting local youth-led initiatives to develop their skills.

The number of projects that have already received funding demonstrates the willingness and active participation of civil society in Ida-Virumaa. So far, 30 small projects have been funded, including public events, workshops, lectures, excursions and youth camps, all with the goal of raising awareness about the just transition and opening the floor to discussions around local identity.

These projects are important for improving cohesion and a sense of community within a region going through a drastic transition. That’s why it’s so important to make sure that funding opportunities like these aren’t just a flash in the pan. Ida-Virumaa is one of a kind in Estonia, with the region facing unique challenges compared to the rest of the country. The region’s longstanding heavy reliance on the oil shale industry, language duality, and an ageing population make it a particularly hard environment for young people to realise their ambitions in life. Thankfully, however, there are signs of welcome change.

Fresh attitudes bring hope

A 2021 survey conducted by Rohetiiger, a cross-sectoral collaboration platform, revealed that the just transition concept was still largely unfamiliar to their young respondents. Generally, these topics weren’t discussed at home or in school. While some of them agreed that change is necessary and they had seen some developments here and there, the concept of the process remained vague and confusing. Interestingly, the young people interviewed didn’t see the just transition in the context of an environmental or climate-related perspective, but rather a social one, worrying primarily about the livelihoods of local people and themselves.

However, according to a more recent commissioned by the Ministry of Finance in early 2024, 72 per cent of young people aged 18 to 24 living in Ida-Virumaa see the current changes related to the just transition as positive. They also view the impact of the just transition on the region and the economy as very or rather positive. In contrast, only 26 per cent of people in the 35-44 age group perceive the impact as positive. These numbers reflect the changing mindset of young people in the region and the rise of a more optimistic and proactive movement. And with it, the belief that the future of Ida-Virumaa is in good hands.

The last trolleybus of Bishkek: mayor’s decision defies logic and undermines foreign investments in green transport

Bishkek’s residents are at a loss as the city clumsily revamps its transport and mobility system. The mayor’s office has begun implementing a controversial plan to transfer the city’s existing trolleybus system to the country’s regional centres and replace them with regular buses – resulting in public outcry. Travelling and commuting around the city have become increasingly difficult as both the city trolleybuses and marshrutkas (privately run minibus services) are phased out, electric as well as compressed natural gas buses are phased in, routes are changed, and road infrastructure is renovated.

The city originally justified the decision to remove the trolleybuses, purchased under an EBRD loan, with a plan to procure electric buses with the help of the USD 50 million, financed through the ADB’s Urban Transport Electrification project. Yet both banks have been tangled up in a situation where poor decision making, lack of consultations and complete miscoordination between the players is undermining the benefits of their investments.

Mysterious ways of decision-making

Bishkek desperately needs to upgrade its transport system and significantly extend its public transport fleet to accommodate the needs of the rising population while combatting devastating air pollution levels. However, 120 electric buses purchased with funding from the ADB’s project are not enough to replace the existing electric trolleybus infrastructure. The city claims to have further plans to extend the bus fleet, including adding compressed natural gas buses – hardly a justifiable strategy to tackle Bishkek’s grave air pollution.

This plan, which the city announced in spring 2024, is particularly controversial because the existing electric trolleybuses in Bishkek not only represent the most environmentally friendly transportation mode but were also purchased recently with financial support provided by the EBRD. The EBRD’s project, consisting of a USD 8.5 million grant and a USD 15 million loan, upgraded the city’s trolleybus fleet and infrastructure by 2018. This upgrade supported the development of 11 trolleybus routes along Bishkek streets carrying up to 20 million residents a year.

Six years later, no clear and transparent information about the removal of trolleybuses was provided to Bishkek residents. Local activists have therefore raised the alarm, bringing the issue to the attention of both the ADB and the EBRD. They also started a massive public campaign under the banner ‘The Last Trolleybus’ to raise city residents’ awareness about the city’s controversial and costly decision to transfer the trolleybuses to other cities. This has included a petition, public marches and various public actions to prevent the city’s plan. Ignoring civil society’s role in decision-making, the local authorities have already started dismantling trolleybus cables in parts of Bishkek, even though public consultations are still ongoing.

Did the banks’ response fall on deaf ears?

Nonetheless, the public advocacy efforts have caught the attention of the development banks. In communication with the local activists, the ADB refuted any knowledge of the city’s plans to dismantle and transfer the trolleybus infrastructure system to other cities, claiming the Bank’s transport project served to substitute only a few outdated vehicles and not replace the whole trolleybus system. The EBRD, on the other hand, has made a formal request to city hall, expressing its concerns about the decision, reminding the mayor’s office that any plans to transfer the trolleybuses purchased through the Bank’s loan agreement would be in breach of the city’s contractual obligations. The Bank’s letter cites that the trolleybuses originally procured under the EBRD’s loan were intended for the city of Bishkek only and were not subject to resale or transfer to other cities without the Bank’s approval.

Last week during public hearings on the matter, the city council halted a decision to transfer 100 Bishkek trolleybuses to the country’s regional centre Osh. Yet, Bishkek Mayor Aibek Dzhunushaliev is adamant about ‘cleaning the city of trolleybus cable lines and running modern mobile buses’ instead. At the same time, he provided no further details on whether the new bus fleet will be able to cover the city’s needs. There are further issues: buses running on compressed natural gas will increase costs, as imported gas is far more expensive than Kyrgyz electricity from hydropower, so they do not present an adequate environmental replacement to existing electric trolleybuses. Even the electric buses procured under the ADB project will not reach the streets until 2025 at the earliest. The mayor’s office has made no public comment in reply to the EBRD’s letter regarding the city’s contractual obligations.

Bankwatch recently published a research study produced in collaboration with our Kyrgyz partners Peshcom that examines the state of Bishkek’s urban transport as well as its development objectives (both on a local policy level and in terms of development financing). It reveals specific problems the city is facing due to lack of transparency and consistency in its approach to the ongoing and planned transport development initiatives. As an example, the current Concept of public transport development of Bishkek for the years 2023-2026 does not mention any plans to remove trolleybuses from the city. Authorities have provided no clear and comprehensive information to justify the proposal or rationalise what sounds like enormous costs for the removal and transfer of trolleybuses and electric substations to another city. Consistent with Peshсom’s study, this seems to be yet another impulsive decision made with no proper planning, preparation or prior consultations with experts or city residents.

Sweeping the mess under the rug or better coordination and planning?

Unfortunately, Bishkek, which is heavily reliant on international investments, seems to approach urban transport development in a very inconsistent, uncoordinated and, as recent events show, possibly even irresponsible way. Considering the EBRD’s declared commitments to development of the city’s transport strategy as part of its original investment project and the ADB’s plans to upgrade city’s trolleybus depots, it would be good to hear from the banks about the results of such work.

Both banks should conduct impact assessments of their role and coordinate their efforts with local authorities, experts and the public to avoid harm and deliver beneficial and meaningful changes to the city.

The ADB and the EBRD should ensure that cities receiving funding comply with their commitments to produce urban development action plans including comprehensive transport development strategies prior to or as part of their investment programmes. Multilateral development banks should also improve communication and collaboration during the project planning stages to avoid mishandling of investment resources by their clients.

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